Bitcoin Mining Causes Pollution And Energy Crises But Is There A Sustainable Way Out?

The invention and widespread use of the internet has pushed the world into a digital age. Money is no exception! #DigitalGreens
 
We’re talking about cryptocurrency and blockchain technology, which is in itself revolutionizing other industries. The thorn in the side though is one that’s causing quite a bit of concern – energy consumption and pollution.
 
According to RMI, the amount of electricity consumed by Bitcoin alone, an industry leader, is 127 terawatt-hours (TWh) a year, which is more than what many countries (for instance, Norway) consume! In the US, cryptocurrency activities emit between 25 to 50 million tons of CO2 each year, near the annual emissions from diesel fuel used by US railroads.
 
This is much worse in context of common people facing power shortages. One such case was in Texas, where the state’s power grid operator had to pay off a Bitcoin company an average of $175,000 an hour to keep their computers offline, as per an agreement in case the system was close to failure. 
 
According to a The New York Times report, there are 34 such operations in the US alone, where each of these operations use at least 30,000 times what an average US home does. Ultimately, this puts a massive strain on the power grid.
 
What’s worse is that Texas passed a bill to attract more businesses to the state and protect the rights of Bitcoin holders, miners and developers.
 
Ed Hirs, who teaches energy economics at the University of Houston, said, “Ironically, when people are paying the most for their power, or losing it altogether, the miners are making money selling energy back to Texans at rates 100 times what they paid.”

 
However, there are some companies looking to curb the energy and pollution crises in the mining process!
 
Tether, a major cryptocurrency company, is looking to set up a Bitcoin mining operation using renewable energy in Uruguay, as it looks to diversify its revenue stream and support its stablecoin, USDT.
 
Furthermore, the company also said that it’s looking for “experts in the energy sector” to support this initiative, as well as invest in “renewable energy sources to support and promote sustainable Bitcoin mining” as it moves into this new venture.
 
Regarding the same, Paolo Ardoino, CTO of Tether, stated, "By harnessing the power of Bitcoin and Uruguay's renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining. Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network. Tether is proud to spearhead a movement that combines cutting-edge technology, sustainable practices, and financial innovation."

 
There are a few other companies and miners who are already using renewable energy sources to support Bitcoin mining operations, according to research by the Bitcoin Mining Council. This comes in response to a recent proposal by the US government looking to introduce a 30% tax on the energy used by Bitcoin miners.
 
Do you think crypto mining companies should be mandatorily made to switch to clean energy sources? Do you think not doing so could be problematic in the long run? Let us know in the comments below!