In a shocking turn of events, Paraguay imposed a power fee of about 14% on Bitcoin mining companies in the country. According to the president, Santiago Pena, this is a bid to reduce the mining companies’ energy use and the business margin. He added that the industry has yet to provide many Jobs. Meanwhile, in July, Paraguay authorities received 10,000 criminal complaints of illegal mining in Hernandarias and stopped over 10,000 ASIC mining rigs.
Similarly, in May, Venezuela authorities raided two Bitcoin mining organisations seizing over 6,288 rigs. Citing a detrimental effect on electricity usage, the government is continuing its efforts to cut off mining operations from the National Electrical System (SEN).
Apart from illegal mining and mining companies’ refusal to pay for power usage, bitcoin mining has been reported to harm the environment. For instance, a report in May highlighted that Laos’s aspirations to become a hydropower exporter in Southeast Asia are being challenged by power constraints brought on by growing electricity use from cryptocurrency mining and irregular rainfall.
There has been increasing debate on mining energy consumption and the need to seek the use of their energy source for these companies and their operation. For instance, African countries such as Ethiopia and Kenya have been reported to be utilising alternate means of energy, such as geothermal and volcanic energy, for mining. However, the question is, have these new energy sources reduced environmental damage and reduced the cost of operations?
Why the need for an alternative solution?
One side of the tale is frequently told in the narrative that Bitcoin mining is bad for the environment because of its high energy, water, and carbon footprint. As experts in the Bitcoin mining sector, we must consider and promote more sustainable, alternative energy sources like volcanic power. By doing this, we can contribute to a more sustainable future and be a part of the solution.
As of January 2024, the Bitcoin mining sector has progressively switched to an alternate energy source. According to a survey published by Bitcoin ESG Forecast, Bitcoin’s sustainable energy consumption has reached a record-breaking 54.5%. However, the expense of installing and maintaining this alternative energy source still needs to be solved.
Volcanic energy, sometimes called geothermal energy, is an affordable renewable energy source already being used in some areas of Africa. Similarly, Other countries like Us, Germany and the UK are opting for greener means of energy to reduce environmental damage and reduce fos of operations; however, the question remains: Is this energy sustainable?
Use Cases of Alternative Energy For Mining
Kenya is the main nation in Africa that uses geothermal power, or volcanic energy, for mining. The Olkaria region contains abundant geothermal resources that are utilised for mining and general energy production.
It’s important to note that due to their low levels of volcanic activity, the US, UK, and Germany do not mine utilising volcanic energy. These nations mostly concentrate on various alternative energy sources for their mining operations.
With its extensive coastline, the UK is investigating using tidal power for coastal mining activities. This new method is based on the country’s natural geography. Furthermore, the UK has been utilising water in flooded, abandoned mine shafts as a geothermal resource for heating, and this is one way of creatively employing its mining heritage.
In addition, biomass from mine waste and local sources is being turned into energy, thereby converting a problem into a solution.
Large-scale solar installations are taking up substantial open spaces in several American mining regions. This effort is led by states such as Arizona and Nevada, which have high solar irradiance. Moreover, the country’s vast wind resources have seen wind farms spring up around mining operations with increasing frequency.
Hydroelectric power has been an important source of America’s energy requirements for a long time, and its use in meeting mining needs is either through existing dams or constructing new ones where practicable. Besides that, significant strides have been made by the US to capture and utilize biomethane from either operating or abandoned mines to convert potential hazards into valuable energy sources.
Conclusion
While Bitcoin mining indeed requires heavy energy consumption, it can still bring in substantial revenues for countries by harnessing other renewable sources of energy. Therefore need of the hour is to look for alternate, greener options for mining.
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