A few weeks ago, the cryptocurrency space was shocked with reports on the crypto mining energy demands. According to the report, crypto mining consumes the same amount of electricity as Ireland does in a year.
It’s a decade into the cryptocurrency era, and power demands have shown no signs of ceasing. Rather, they are growing alongside the economy. The demands go towards the provision of immutability, proof of work, and consensus in a decentralized network. These are the vital essentials for the functioning of blockchain technology.
Electricity is being used for revolutionizing money and value exchange. Blockchain may still be in its developmental stage, but it has gained great momentum towards this purpose. No one exactly knows the direction it’s headed; only ideas can shape the future. Mining chips may get more efficient by the year; they, however, haven’t reached the point of pushing back against increased electricity use.
Marco Streng is the CEO of Genesis, a crypto mining company, and this piece is a summary of his views on the crypto energy consumption report. We have summarized reasons why he thinks crypto energy consumption shouldn’t be of concern as the report suggested.
The Mining Sector Is Very Flexible Where It Can Deploy
Mining companies don’t need to deploy near civilization nor need confinement in any particular space. All they need is electricity and an internet connection for it to work. What this means is, mining industries need to identify places with excess natural energy like solar or wind.
Energy Usage Isn’t Bad If Its Renewable
There are a lot of energy sources available in the world today. Hydropower, wind, solar, geothermal, etc. Mining operators seeking optimization need to set their shops where the energy is in abundance and where it can be optimized to its full potential. For instance, genesis mining advocates working in cooler climates where far less energy is required.
Mining Contributes To Support Renewable Energy-Research
Emergent crypto technologies are becoming more and more efficient in regards to power consumption. Also, crypto companies subsidize their products when renewable energy is used.
Dr. Katrina, an Electrical and computer engineering research associate from Pittsburg University, wrote an article contending how the environmental cries against bitcoin distract people from understanding how blockchain works.
Dr. Katrina acknowledges the energy intensiveness of new technologies like computers, data centers, and before the planes, trains, and automobiles. She, however, notes that over time, they became more efficient and so will blockchain evolve to more efficient means.
Push For Renewable Energy Sources
Now, as much there was an extent of truth in the said reports. Mining operations have to show concern over the environment or at least care about saving costs. Mining operations capturing their energy have a distinct advantage over others that do not.
The development of blockchain will see other technologies being developed in parallel. The fact that there is a demand for green energy means there is a business incentive for people to develop compelling products for sale.
Even NASA, to explore space, created a bunch of new technologies that have helped improve human life. For instance cordless vacuum cleaners, firefighting equipment, LASIK surgery, etc.