The advent of cryptocurrencies, especially Bitcoin, has also brought in its inherent challenges and high energy consumption is at the top among them.
Bitcoin has been criticised for its high energy consumption and reports suggest over 147.3 terawatt-hours per year usage as of January 2024.
Such high energy consumption using non-renewable sources pose serious threats to the ecological balance of earth and also drastically increases cost of operation.
According to the University of Cambridge, the yearly global energy consumption in Bitcoin is 147.3 TWH which is higher than that of gold mining at 131 TWH per year. The energy consumption of Bitcoin is higher than that of nations like Malaysia, Poland, and Ukraine.
The statistics are self-explanatory and showcase the urgency of finding a sustainable solution.
Need to find an alternative solution
The narrative of Bitcoin mining being environmentally detrimental, largely due to its high energy use, water consumption, and carbon impact, often presents only one side of the story. As professionals in the Bitcoin mining industry, it’s crucial that we consider and advocate for alternative, more sustainable energy sources, such as volcanic power. By doing so, we can be part of the solution and contribute to a more sustainable future.
As of January 2024, the Bitcoin mining industry has gradually shifted to an alternative energy source. According to a report by Bitcoin ESG Forecast, Bitcoin’s sustainable energy consumption has already hit an all-time high of 54.5%. However, the cost of maintaining and setting up this alternative energy source is still an issue.
One renewable energy considered cost-effective is volcanic, also known as geothermal energy, which some parts of Africa are already adopting. But the question remains: What type of energy is it, and is it sustainable?
What is Volcanic/Geothermal Energy?
The heat beneath the earth’s surface originates from the molten material that makes up the protective layer between the crust and the core, known as geothermal energy. This heat can be used to heat water for structures or to provide warm water. It can also be used to create electricity. Geothermal heat can produce power by boring wells into the ground and pumping hot water or steam up toward the surface.
Is Volcanic Energy Sustainable?
Given its low environmental impact and greenhouse gas emissions, volcanic energy energy is considered a sustainable and renewable energy source.
Another reason why volcanic energy is seen as an exceptionally dependable source of energy is that it can be continually harvested and is available around the clock, unlike solar and wind energy, which are subject to weather variations and unpredictable in their output. Furthermore, power generated by geothermal forces is not impacted by variations in the weather.
Because of its aforementioned qualities, geothermal energy is a highly sustainable energy source compared to more conventional sources like fossil fuels. Furthermore, geothermal power plants are more environmentally friendly than nuclear power because they don’t produce any form of long-term waste.
Advantages of Volcanic Energy for Bitcoin Mining
- Sustainability
The fact that geothermal heat has a little environmental impact makes it a great choice for powering bitcoin mining operations. As previously noted, geothermal heat is a renewable resource, and producing power from it produces very little waste or greenhouse gas emissions. Moving to more environmentally friendly energy sources is crucial in light of the present climate problem and the environmental strain that comes with extracting and burning fossil fuels.
- Reliable
Another benefit of geothermal energy is that it is an extremely dependable energy source with no supply restriction and no reliance on the weather. As mining bitcoins is a 24/7 operation, consistent energy that can be produced reliably is essential.
- Low Operating Cost
Because geothermal power plants are capable of producing electricity constantly throughout the year and have a significant capacity factor, the operating expenses connected with geothermal energy are comparatively low. Furthermore, since the heat needed to create electricity comes from the earth’s interior, the cost of fuel has no bearing on geothermal power plants.
Disadvantages of Volcanic Energy
One primary disadvantage of volcanic energy is that the geographical limitations of geothermal sources pose a significant obstacle to utilizing this energy source for Bitcoin mining. Only in places where there is enough geothermal heat close to the surface—usually in areas of volcanic activity or tectonic plate boundaries—can geothermal energy be produced.
This limits the potential of geothermal energy as a widely available energy source because it means that only specific parts of the earth are appropriate for creating geothermal energy sources. The cost of transporting geothermal energy from its source to a remote Bitcoin mining site is high; thus, it might be less appealing or practical.
Conclusion
The development of geothermal energy resources is being propelled by the rising need for sustainable energy sources as well as the growing consciousness of the negative environmental effects of conventional energy sources. Furthermore, improvements in geothermal systems may contribute to extending the range of areas in which geothermal energy can be used, increasing its accessibility as a source of energy for bitcoin mining.
