Reasons why Bitcoin mining is environmentally sustainable
There is no easy way to put this, but Bitcoin converts electricity into money and provides a revolutionary peer-to-peer transactional model for our economy. Entrepreneurs like Varun Datta from 4NEW, a waste to Energy Company that mines cryptocurrency, are already tackling this issue despite the pundits and ecologists claiming that cryptocurrency is severely damaging the environment and contributing to global climate change. Here are some reasons why the benefits of cryptocurrency justify the expenditure costs that are required to harness them:
1) It is more stable than traditional currency
Whether its demonetization or inflation of currency by ancient rulers or central banks, fiat money is always subject to debasement. The currency is at mercy of their controllers and can cause problems for investors and the public. Bitcoin was invented for the simple reason to avoid debasement and provide a safe, private and secure channel for transactions. Rather than trusting some random accountant, Bitcoin relies on code and its digital DNA. It’s more accountable.
2) Bitcoin mining provides growth and employment
Bitcoin mining can be cheap, cost-effective and efficient if access to ASIC mining hardware, deep knowledge, and experience in the mining business. China is a popular source for mining because it produces the most mining hardware and several provinces have invested heavily in power generation. Miners in favorable climates with access to cheap hydro, solar, wind, geothermal energy also have an advantage to be sustainable. It is a booming industry for both the people who build these machines and people who operate them. It creates job opportunities.
3) Heat generated from mining can be reutilized
There are many data centers in the world doing this for example; IBM Switzerland uses this to heat pools. Waste heat can be useful to aquaculture and for various drying processes. Although options like wood, propane, oil tend to be cheaper, electricity tends to be more convenient.
4) Countries like Denmark and Germany sometime produce in excesses
It was reported in 2016, that Germany produced so much electricity that prices to be paid by consumers turned negative. Customers actually got paid to use electricity! Denmark has also from time to time showcased this trend where companies paid the customers so that electricity was evenly distributed. What it means is if the miners relocated to such regions, they could end up getting paid by the government and companies for their effort!
5) There is a rise in environmentally conscious mining
The mining efficiency is constantly improving and is becoming more and more environmentally conscious. Companies like 4NEW, started by Varun Datta are focusing on creating tokenized electricity from waste compost and disposable garbage, making the process of mining leaner, meaner and greener. In the next few years, the industry is expected to adopt methods set by Varun and 4NEW to ensure that the environment issue does not become a big problem for miners and cryptocurrency parties throughout the globe and people accept it wholeheartedly.
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