Full throttle? – The debate on the bitcoin network energy consumption is one of the recurring topics. Not a week goes by without putting a coin back in the jukebox. Both on the side of the convinced and the detractors of the first cryptocurrency on the market. The two camps surrender blow for blow. However, the anti-Bitcoin people recycle figures and statistics overwhelmed by the almost daily innovation of the BTC network and its miners.
Bitcoin consumes, but tends to consume “better”
If there is one stubborn fact that every party must recognize, it is the very high energy consumption of Bitcoin. Indeed, through the mechanism of Proof of Work, miners secure transactions and the integrity of its blockchain. An energy-intensive process to be sure. But the picture is much less bleak than some would have you believe. A few years ago we could read “that in 2020 Bitcoin will consume all the electricity in the world”. Suffice to say that it is almost (not at all) a miracle if you still have electricity to read this article…
The consensus mechanism, Nakamoto’s protocol, is immutably written into its code. This is why Bitcoin miners and infrastructure players are innovating and looking for solutions. Indeed, initiatives are multiplying all around the world to “green” network consumption. A necessary evolution given that Bitcoin will consume more and more electricity as the blockchain takes on new users.
Sector players focus on surplus energy (green or not), electricity produced but which will never be sent to the domestic grid and therefore never sold. Produced at a loss, therefore. The first concerned are the producers of this energy. They have every interest in monetizing in the near future what is lost today.
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“Bitcoin fixes this”
As we mentioned, ideas abound for reduce bitcoin’s carbon footprint. Already a pioneer in waste gas mining in the United States, Crusoe has announced that it is extending its green mining solutions to the Middle East. This region of the world represents 38% of the gas burned via flares, a very polluting process. It is therefore quite logical that the company specializing in BTC mining sets up in Muscat, in the Sultanate of Oman.
The ambition is to extinguish the flares, or at least to significantly reduce their use. This “unsuitable for consumption” gas is extracted at the same time from other gases used in industries or homes. The “good” gases are harnessed and directed to market, while the bad ones are flared, releasing monstrous amounts of methane and the like into the atmosphere.
” Getting buy-in from nations that are actively trying to solve flaring issues is what we seek.. »
Chase Lochmiller, CEO of Crusoe
Indeed, the Oman Investment Authority has released $505 million during a fundraiser organized by Crusoe last April. The Sultanate is investing heavily in this direction, which coincides with the commitment signed with the World Bank. Oman has pledged to remove all flares by 2030. Bitcoin is one of the technologies that can provide economic incentives and therefore accelerate a necessary global transition.
Blockstream CEO Adam Back affirms that the entire Bitcoin network could be secured by electricity from only surpluses produced in Quebec! This is enough to twist the wacky figures, blown up several years ago and which unfortunately serve today as working basis for drafting laws like MiCa.
Hydrocarbon-producing countries are also mining Bitcoin…probably nothing. do not wait any longer and take advantage of the potential of Bitcoin and cryptocurrencies to register on the benchmark crypto exchange FTX. A lifetime reduction in your trading fees awaits you thanks to the JDC affiliate link.