In a shocking turn of events, Paraguay imposed a nearly 14% electricity fee on Bitcoin mining companies in the country. According to the president, Santiago Pena, this is an attempt to reduce energy consumption and business margins of mining companies. He added that the industry is yet to provide many jobs. Meanwhile, in July, Paraguayan authorities received 10,000 criminal complaints of illegal mining in Hernandez and blocked 10,000 ASIC mining rigs.
Similarly, in May, Venezuelan authorities raided two bitcoin mining organizations and seized more than 6,288 rigs. Citing the detrimental impact on electricity consumption, the government is continuing its efforts to disconnect mining operations from the National Electrical System (SEN).
In addition to illegal mining and mining companies refusing to pay for electricity usage, Bitcoin mining has been reported to harm the environment. For example, a report in May highlighted that Laos’ ambitions to become a hydropower exporter in Southeast Asia were hindered by power outages caused by cryptocurrency mining and increased electricity use from erratic rains. Being challenged for cause.
There is a growing debate on the energy consumption of mining and the need to explore the use of energy sources for these companies and their operations. For example, African countries such as Ethiopia and Kenya are reported to be using alternative energy sources, such as geothermal and volcanic energy, for mining. However, the question is whether these new sources of energy have reduced the environmental damage and reduced the cost of operation.
Why the need for an alternative solution?
One side of the story is often told in the narrative that Bitcoin mining is bad for the environment due to its high energy, water and carbon footprint. As experts in the field of Bitcoin mining, we must consider and promote more sustainable, alternative energy sources such as volcanic power. By doing so, we can contribute to a more sustainable future and be part of the solution.
As of January 2024, the Bitcoin mining sector has gradually transitioned to an alternative energy source. According to a survey published by Bitcoin ESG Forecast, Bitcoin’s sustainable energy consumption has reached 54.5%. However, the costs of installing and maintaining this alternative energy source still need to be addressed.
Volcanic energy, sometimes called geothermal energy, is a renewable energy source already used in some areas of Africa. Similarly, other countries such as us, Germany and the UK are opting for greener sources of energy to reduce environmental damage and reduce operational costs. However, the question remains: Is this energy sustainable?
Use Cases of Alternative Energy For Mining
Kenya is the leading nation in Africa to use geothermal power, or volcanic energy, for mining. The Olkaria region has abundant geothermal resources that are used for mining and general energy production.
It is important to note that due to the low level of volcanic activity, the US, UK, and Germany are not mine for harnessing volcanic energy. These nations mostly focus on different sources of energy for their mining operations.
With its extensive coastline, the UK is investigating the use of sea power for coastal mining activities. This new method is based on the natural geography of the country.
Additionally, the UK is using water in flooded, abandoned mine shafts as a geothermal resource to heat water, a way to creatively use its mining heritage.
Large-scale solar installations are taking up a lot of open space in many US mining areas. The effort is being led by states like Arizona and Nevada, which have high solar irradiance. Additionally, the country’s vast wind resources have seen wind farms spring up around mining operations with increasing frequency.
Hydroelectric power has long been a major source of America’s energy needs, and is used to meet mining needs either through existing dams or the construction of new dams where feasible. In addition, the United States has made significant progress in capturing and using biomethane from operating or abandoned mines to convert potential hazards into valuable energy sources.
Conclusion
Although Bitcoin mining actually requires heavy energy consumption, it can still generate substantial income for countries using other renewable sources of energy. Hence the need of the hour is to explore alternative, greener options for mining.
