Bitcoin mining and its role in domestic energy production!

Many have written about Bitcoin BTC and its high energy consumption. However, even if cryptocurrency consumes about as much electricity in a year as in the Netherlands, there are a number of people within the industry. Bitcoin, they discuss another possibility, which is that they may end up being the same, net positive for the energy sector.

As the analyst and founder of Adamant Capital، Tuur Demeester, in a tweet on Twitter, that:

"mining Bitcoin It can increase the total capacity of countries to produce electricity, so that in times of peak domestic demand, the market has more spare electricity to pass on to the households that need it.”

While this claim has not been supported by much data, it is expected Demester That with continued mining Bitcoin In growth, more power plants will be built, as the excess energy from these plants will be used for domestic consumption (in addition to mining).

According to researchers and industry figures who spoke with Cryptonews.com Cryptonews.com, such claims have some advantages, as far as mining has resulted Bitcoin In general, to an increase in total production capacity and production, commentators are divided on the question of whether Bitcoin It will contribute to national power grids, as some researchers suggest that plants built for mining are used exclusively for mining (and not for anything else).

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Does Bitcoin Mining Increase National Energy Production?

There appear to be some isolated examples of mining stations connected to local power grids, according to people working in the crypto-mining industry.

According to what was reported by the site Cryptonews.com Cryptonews.com About Zach Bradford CEO and President Clean Spark, a Nevada-based energy technology and mining company Bitcoin Environmentally friendly:

“For a new mining facility we're launching near Atlanta Georgia, for example, we've partnered with the utility company to invest in new transmission lines.

In this case, it will not only be us who benefit from our own facility, but also everyone who lives along this one Enhanced Fonts“.

According to the CEO, they will also participate in a local utility-sponsored program, which will allow them to purchase renewable energy credits to offset any fossil fuels, in the local energy mix.

Bradford In his testimony, the money flowing into the program will be used to increase investment in solar energy production in the local area, thus benefiting other energy consumers.

He also points out that other companies in the mining industry are refurbishing coal-based fossil fuel plants and converting them into natural gas plants, which is not environmentally friendly, but at least increases overall capacity.

This is an observation made by other individuals, both inside and outside the mining industry.

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as explained Igor Runets Founder and CEO of BitRiver, a provider of environmentally friendly cryptocurrency mining shared hosting services:

"mining Bitcoin It allows for faster payback of renewable energy projects, such as solar, wind or hydro projects, which means that more of them can be built faster in areas that would not be economically attractive otherwise.”

Others have noted that most of this new capacity is being used largely by the crypto-mining industry itself, with little (or no) excess capacity distributed elsewhere.

where he said Marc Bevand, researcher and investor in Bitcoin:

“I am aware of examples of miners who have raised capital to finance and build their own power plant, and despite this, their production is usually consumed entirely by miners, and is not redistributed to the grid.”

On the other hand, confirms Gene Hoffman CEO of Network Operations Chia New energy capacity is often isolated, particularly in the United States.

“Sure to be mining Bitcoin In the United States, it has led to the construction of new power plants and the reopening of coal-fired power plants.

However, this new generation capacity is generally very rural, thus adding to the trapped electric capacity in various regions, such as upstate New York and the Columbia River Valley.”

Hoffman adds that in both places mentioned above, mining facilities are Bitcoin Compete with other consumers, such as Amazon's data center in Oregon.

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Will mining be used to feed power grids?

Assuming that most of the new power plants created by Bitcoin, used only for mining, could the future bring other scenarios, where these plants send energy elsewhere, the same energy that was originally created for Bitcoin؟

In this regard he says Zach Bradford:

“It is not only possible, it is happening now.”

Mining facilities can Bitcoin Participate in demand response programs to improve the health of the network around it.

According to for Bradford, participants in such programs can shutdown on demand, and this then allows the facility to send out the excess power capacity created for mining operations Bitcoin, to areas or facilities that need additional power:

“This usually happens during times of natural disasters or times of extreme cold and heat.”

As mentioned Christopher Bendiksen, head of research Bitcoin in a Coin Shares, that this kind of thing is already happening.

where he told Cryptonews:

“There are concrete examples of miners already operating as demand response units in the Irkut system ERCOT In Texas, they contract with local network operators to turn off electricity when demand is low.

This ensures the generators are profitable, but operations are stopped when demand is high, providing electricity to homes, businesses and industry, when it is most needed.”

while expecting Benedict Bendiksen The number of miners who work in this way “It will explode over the course of this decade.”, allowing for much larger shares of intermittent renewables, such as solar and wind energy.

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However, not everyone is optimistic. For Alex de Vries skeptical Bitcoin, it is unlikely that mining will contribute Bitcoin and factories used for mining, in any way essential to the country's domestic power grids.

where he said to Cryptonews:

“Minerals can only consume energy, and they cannot store any of it, since in many cases they are consuming energy that others need or can use.”

This happened, for example, in Abkhazia, which led to a power outage.

notes D Fries Also, to mine Bitcoin drains station Navajo, while still about 14 A house in the area "Deprived of Energy".

Where he adds:

"The locals seem very angry."

That, referring to comments left by residents, in response to a Facebook post by the chief Navajo, Jonathan Nez.

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net positive in the future?

Despite these criticisms, the mining industry is optimistic that mining will become a net positive for the energy industry in the not-too-distant future. where he said Christopher Bendiksen:

“It is a huge positive, for both producers, consumers and the goals of our innovation generation.

With miners acting as units in response to demand, and if mining becomes large enough, we can significantly increase the proportion of renewables.”

On the other hand, he confirms Marc Bevand, also that mining will be net positive, indicating that the mining industry is unique, meaning that 95% of a typical mine's operating expenses are spent on electricity, and no other industry has a very high share.

“Thus, the miners who have their own power plants, put a lot of effort into technological advancement to reduce the cost, so the improvements they develop will inevitably fall, and benefit other industries.

I expect to see some of these developments in the short to medium term, especially with solar energy because it is now the cheapest electricity in history, according to the 2015 World Energy Outlook. 2020, issued by the International Energy Agency.

As a researcher into how fast Talabat explodes, Bitcoin energy in recent years, the Alex de Vries Not entirely positive, like those who have a financial interest in Bitcoin or mining.

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Asked if mining will be net positive in the future, he said:

“Maybe it depends on who to ask the question, as oil and gas companies seem to see a lot of opportunities, but network operators are less enthusiastic, given the complexities of network stability.”