Bitcoin Global News (BGN)
March 29, 2019 -- ADVFN Crypto NewsWire -- One of the most commonly
cited problems with increased global use of Bitcoin is the energy
consumption involved in the process of running the Bitcoin network.
The proof-of-work mining mechanism that was first implemented with
Bitcoin and has since been emulated by numerous other
cryptocurrencies, is inherently energy intensive. In essence, the
energy need to operate a miner or facilitating of mining hardware
is like a buy-in cost. Because of this high price to be a Bitcoin
miner, it eliminates the occurrence of hackers. The cost involved
in the hardware energy consumption is only worth it if a miner ends
up properly participating in the network to validate transactions
and receive transaction fees.
Because of this, many people claim
it would be totally unsustainable to have Bitcoin being used as a
prevalent global currency. But there are two major issues in
contrast to this. First, it does not take into account all of the
energy used in order to operate the current financial system of
banks, buildings, employees driving cars to work, atm machines on
24/7 and simply the cost of printing physical fiat dollars. Second,
this argument against proof-of-work cryptocurrency ignores the
source of the electricity used.
Renewable Energy For
Sustainable Cryptocurrencies
Not all electricity is created
equal. Burning fossil fuels to create electricity is most common,
but is the least sustainable. Some countries have high instances of
hydroelectric, wind or solar, but these industries are still
growing and creating better products. In order to facilitate this
growth, governments can give incentives to businesses or
individuals for using renewable energy sources. In one local
government in the United States, new regulations are being proposed
to deal explicitly with cryptocurrency mining. Unfortunately, the
regulators cite the same old watery arguments against
Bitcoin.
...a single transaction in Bitcoin,
the largest cryptocurrency, consumes thousands of times more energy
than a conventional credit card transaction, and the estimated
total electricity consumption of cryptocurrency mining in Missoula
County is equivalent to one-third of residential electricity
consumption in the county, and will rise to the level of 100% of
residential electricity consumption in the county if planned
expansions are carried out;... the large and increasing energy
consumption of cryptocurrency mining operations results in
increased greenhouse gas emissions that cause climate
change...
However, regardless of the fuel
behind these regulatory changes, the result is moving toward more
energy efficiency. The county will have new zoning regulations
which require that cryptocurrency mining operations operate in a
sustainable manner. Potentially when these standards are placed on
all businesses, there could be real change.
“These facilities shall be required
to develop or purchase sufficient new renewable energy to offset
100 percent of the electricity consumed by the cryptocurrency
mining operation. To meet this condition, the cryptocurrency mining
operation must be able to establish that their actions will
introduce new renewable energy onto the electrical grid beyond what
would have been developed otherwise.”
https://www.missoulacounty.us/government/community-development/community-planning-services/planning-projects/cryptocurrency
By: BGN Editorial Staff