Instead of falling into the same recurring theme about how Tesla stopped accepting Bitcoin as a payment method to buy vehicles, today we are going to focus on showing some of the more interesting options for the success of cryptocurrency to continue to increase while reducing damage to the environment.
Indeed, mining Bitcoins involves significant energy consumption. The reason for this is that it is the part of the process that is responsible for validating transactions and exchanges and also verifying that no one is using the same bitcoin (or part of it) more than once. These are the projects that are advancing for a mining without polluting emissions.
Renewable technology projects for mining Bitcoins
To get started with the matter, let’s remember that the issue of environmental pollution in bitcoin mining is not something new. That it has emerged with more force after what was said by Elon Musk and Tesla leads different companies to join forces to attack this problem that can be seen as the biggest problem of cryptocurrency (along with volatility).
Now, knowing the above, the first proposal to comment is on the alliance between the cryptocurrency mining company, Argo, and the blockchain technology developer, DMG. Both have created the Green Hash Rate Group, under the signature of the so-called Cryptocurrency Climate Agreement (CCA). Basically, this deal wants to bring all mining for Bitcoin and other cryptocurrencies to renewable energy by 2030.
As they have commented in the statement, the plan that has started since last May 14 is develop verification tools, technologies and standards so that the mining is 100% with renewable energies.
Second, we have the proposal Digital Power-Optimization (DPO), a company founded by Andrew Webber, a New York-based financial analyst with industry experience. His plan consists of two parts: to help reduce price volatility in the electricity market and to contribute better ideas to solar, wind and battery construction developers so they can be assigned to mining.
The specialist has said that by helping these developers they could find an ideal combination to be able to supply energy in the network, through battery structure and also for the crypto sector and thus take advantage of the maximum capacity of renewable sources available.
As Webber has highlighted, a very interesting alternative consists of mining cryptocurrencies right in the same location of a wind, solar or other type of energy park. In this sense, if a power plant does not work 100% 24 hours a day, every day, some of that power generation can be sold to Bitcoin miners at prices close to zero, which would generate benefits for both sectors.
Tesla’s dilemma with Bitcoin
The reason Tesla issued for not accepting Bitcoins may have a very good basis. However, if we look at some of the statistics presented by institutes like Cambridge University, cryptocurrency miners are increasingly using renewable energy sources. According to the results of the survey carried out by this house of studies, more than 39% of the energy consumed by Bitcoin and Ether comes from renewable sources. But of course, the company probably wants to rejoin when the percentage exceeds more than half in the next few months or years.
As a crypto enthusiast, I find the decision made by Elon Musk and Tesla a bit confusing, which has resulted in a hit for Bitcoin and other cryptocurrencies. However, seeing that the CEO of the company himself declared on Twitter that he had not sold any Bitcoin, in addition to saying that he is financing the mission to the Moon with Dogecoin, It is worth thinking about a possible strategy that involves getting more virtual currencies for the future… We will see how the situation progresses.
Here’s the tweet in question:
To clarify speculation, Tesla has not sold any Bitcoin
– Elon Musk (@elonmusk) May 17, 2021