Renewable Sources As The Propeller Of Bitcoin Mining Process

Tarulika  |  Mar 2, 2020, 6:52 am
Renewable Sources As The Propeller Of Bitcoin Mining Process

The founder of the Digiconomist, Alex de Vries, in an interview with British media, The Telegraph, explained about the electricity consumption in the Bitcoin mining process. As per his assessment, a single transaction of Bitcoin utilises the same amount of electricity which is needed to power a household of Britisher for 59 days or 780,650 Visa transactions or 52,043 hours of Youtube video streaming. But the utilisation of renewable sources during the mining process was out looked in the assessment.

Unverified Transactions In Mining Process

The interview explains that the annual profits generated from mining process of Bitcoin are approximately $5.9 billion with nearly 4 billion mining units which compete for the share of the bounty globally. Vries claimed that 98% of mining rigs resulted in unproductive electricity expenditure when miners failed to verify the transactions due to the outdated mining machines which only consumes energy and are incapable of making calculations for verifying transactions.

On the contrary, De Vries failed to substantiate his claims related to 4 billion active mining rigs on the network of Bitcoin. His assessment which was derived from Bitcoin Electricity Consumption Index Of Digiconmist, did not consider the dynamics of mining pools and overlooked the benefits of considerable hash power in providing security to the Bitcoin network. Thus, the documents may not portray the real values of the consumption of electricity.

Renewable Sources As the Fuel For BTC Mining

Some of the analysts claim that the bitcoin mining process is majorly powered by inexpensive and inexhaustible renewable energy. The report of crypto investing company, Coinshare asserted that renewable sources produce around 73% of electricity consumed due to the mining process, two-third of which is placed in China.

Many of the top mining companies are planning to move to Texas due to the presence of abundant wind energy, shifting the focus from hydropower which is offered by Sichuan province of China. Texas might stand out as the hub for enthusiastic miners as the country provides the fifth largest wind energy in the world, which will be harnessed by Bitmain’s Texas-based facility with a capacity of 100 megawatts.

As the crypto mining industry is experiencing the technological and geographical shift, views of the Vries holds little importance. His assessments did not provide the real picture but compelled the crypto enthusiasts to offer the actual figures of the power consumed by the network, which majorly utilises the renewable source of energy.