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Home / Blockchain / Elon Musk & Jack Dorsey Agree on Bitcoin's Green Credentials

Elon Musk & Jack Dorsey Agree on Bitcoin's Green Credentials

Published Mon, Apr 26 2021 06:48 am
by The Silicon Trend



The mining of cryptocurrencies utilizes a lot of power & can be employed at any time, which helps developers make money-minting coins when there's lots of sunshine or wind, but not much electricity. Making better use of solar & wind, where generation of power can be sporadic, boosts efficiency, reduces rates & helps encourage the green transition.

Tech giant Tesla has agreed with Twitter, who has quoted that bitcoin incentivizes renewable energy, despite professionals warning otherwise. Studies suggest that cryptocurrency's carbon footprint is as massive as some of the world's largest cities. Twitter boss - Jack Dorsey claims that could change if Bitcoin miners function hand-in-hand with renewable energy companies. One proficient stated it was a cynical strive to greenwash bitcoin.

China, where more than two-thirds of the power is obtained from coal, reports for more than 75 percent of Bitcoin mining worldwide. The mining method to produce new Bitcoin involves solving intricate mathematical equations that require vast amounts of computing power.

Novel sets of transactions are added every 10 mins by the miners from around the globe to Bitcoin's blockchain - the ledger that records the transactions of cryptocurrencies.

In a tweet, Mr. Dorsey stated that 'Bitcoin incentivizes renewable energy' to which the Chief Officer of Tesla - Elon Musk had replied, 'True.' The tweet comes shortly after releasing a White Paper from Mr. Dorsey's digital payment services company Square & global resource management business ARK Invest.

Authorized 'Bitcoin as vital to a copious, clean energy future,' the paper posits that Bitcoin miners are unique energy buyers, as they offer to pay in cryptocurrency, flexible, & can be based anywhere with an internet connection. It said, "By combining miners with storage projects & renewables, we believe that it could enhance the returns for project developers & investors, moving more wind & solar projects into profitable territory."

David Gerard, Author & Bitcoin critic, explained the paper as a cynical practice in Bitcoin greenwashing. Mr. Gerard said the fact is Bitcoin runs on coal. He gave some examples of how an accident at a coal mine in Xinjiang had to temporarily close, resulting in power cuts across the area & ruining the potential to mine novel Bitcoins.

He added that this slowed the blockchain down considerably & coincided with the latest Bitcoin rate drop. Bitcoin mining is so alarming & ghastly that the number one task of Bitcoin promoters is to make excuses for it.

Iceland v China

One bitcoin is currently worth $53,000 (£38,000) & the price increment has led to a rise in demand for new coins. A recent approach suggested that the amount of Bitcoin mining that is taking place in China could threaten the country's emission reduction targets.

Meanwhile, the University of Cambridge analysis expresses that the Bitcoin network utilizes more than 121 TWh annually, which could rank it in the top 30 electricity consumers globally if it was a country.

But there are few cryptocurrency miners in countries such as Norway & Iceland, where most energy generation is almost 100 percent renewable through geothermal & hydroelectricity energy.

He wrote in Medium that Bitcoin professional - Phil Geiger pinpointed that Bitcoin mining rewards the most energy-efficient miners with the maximum profit. Mining is all about increasing the number of computations (hashes) per kW of electricity.

At present, the most effective method to produce the largest hashes/k is via the use of hydroelectric & solar, as those are the least expensive methods to generate electricity.