- November 29, 2023
- Posted by: [email protected]
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Several cryptocurrency advocates are highlighting the pivotal role of Bitcoin (BTC) mining as a “critical tool” for promoting clean energy usage and grid balance. In a recently released working paper titled “Leveraging Bitcoin Miners as Flexible Load Resources for Power System Stability and Efficiency,” former ERCOT President Brad Jones, alongside Bitcoin advocates Nic Carter, Dennis Porter, Murray Rudd, and Shaun Connell, explores the positive aspects of BTC mining.
According to the report, the incorruptibility and swift load response capabilities inherent in Bitcoin mining can enhance grid flexibility, aiding the integration of variable renewable energy sources. Through case studies, the researchers illustrate how Bitcoin miners in Texas have actively participated in demand response programs, showcasing their unique abilities as flexible and controllable loads.
This research challenges the criticisms levied by anti-crypto politicians, such as Senator Elizabeth Warren, who have raised concerns about Bitcoin miners’ energy consumption and grid strain. The authors argue that Bitcoin miners can contribute significantly to demand response, supporting the technical and economic stability of the grid.
While acknowledging the complex impact of Bitcoin on global energy demand and climate change, the researchers suggest that emerging data indicates a more nuanced understanding of Bitcoin mining’s effects. A study from Cornell University, for instance, demonstrated how wind and solar projects can benefit from Bitcoin mining during their pre-commercial development phases.
The sustainability of Bitcoin mining is undergoing positive transformations through various innovations. Hydro-cooling farms and the use of associated petroleum gas are making Bitcoin mining more environmentally friendly. Reports from September indicate that over 50% of Bitcoin’s energy usage is sourced from clean energy.
Crypto miners are experiencing increased rewards amid the recent surge in cryptocurrency prices, with average daily revenue reaching around $32 million in the past month. The hashrate, a measure of computational power for mining, has reached an all-time high, indicating miners are utilizing more powerful computers. According to Hashrate Index, miners’ earnings using 1 petahash per second of computing power in a day have risen from $70 at the start of November to over $81.
Simultaneously, market speculation about the prospective approval of a spot ETF has fueled a recent surge in Bitcoin’s price, which has reached close to $38,000.
