Solving The Bitcoin Energy Problem
Bitcoin stands as a marvel of modern technology that can secure assets with computing power, but unfortunately it happens to feature an energy-intensive drag that continues to prove problematic for its growth.
A study of the carbon emissions caused by the 13 publicly listed miners in the U.S. at the end of 2022 concluded the footprint’s size to be 7.2 Million Metric Tons of CO2 (MtCO2) per annum.
This energy usage is equivalent to supplying electricity to about 908,190 homes for one year. That is a lot considering there is a significant amount of activity that isn’t publicly listed, and as a result, unaccounted for.
Bitcoin miners feel this in the shape of thinning returns, with newer hardware generations not improving enough so that a mining operation can be successful if kept small. The result is that the entire sector optimizes for scale, and the carbon footprint becomes a larger issue that we cannot ignore.
To tackle this, we must involve others in a concerted effort to establish a standardized method for evaluating the performance of energy sources, akin to how on-chain data is scrutinized.
When it comes to power, mining farms focus solely on the effectiveness of cost per Kilowatt-hour, while leaving the sustainability of the energy mix entirely up to their power provider. And while electric grids across the US try to adapt and embrace cleaner technology, the needle is moving very slowly, mostly thanks to wind and solar developments.
According to data from the U.S. Energy Information Administration, renewables made up approximately 22% of the U.S. electricity generation in 2022, with expectations of this share rising to 23% in 2023 and 26% by 2024.
This is why what we do locally at a bitcoin mining facility matters a whole lot to our planet, our profits, and our chances of survival as a species. Because by deploying solar panels and decreasing the impact of carbon emissions for the operation, we can unburden the local power grid and work to evolve clean energy technology.
We need a new, common system that should not only measure the proportion of renewable energy used but also assess the overall environmental impact, including carbon emissions and energy efficiency.
While this is a big task that requires collective efforts and a significant amount of work, the alternative of greenwashing our power sources or doing nothing about it, is simply too costly for societies at large.
It has to begin with the technology deployment and data facilitation through software that each mining company can engage in, which is why at Superpower, we have chosen to start with solar energy.
In this space, you will be able to find new thinking models on different alternatives to achieve this, as well as product updates that will show you how we are doing it at Superpower.
Our vision is that we have to develop the solar capabilities today, when they are most difficult to amortize, so we can have a future we can be proud of.
