Although Bitcoin mining consumes between 0,1% and 0,3% of the world's energy, for its survival as a profitable and environmentally sustainable activity, mining equipment manufacturers need to design more energy-efficient solutions.
the mining of Bitcoin (BTC) Bitcoin mining has become an industrial activity. It is no longer just a matter of users using simple computers from their homes, but of gigantic companies with large mining farms, where they manage thousands and thousands of sophisticated, state-of-the-art equipment to mine bitcoins. But in addition to the mining equipment, the mining farms also operate complex cooling systems, which guarantee an optimal environment and temperature for the correct operation of the mining equipment.
As expected, these devices generate high energy consumption to keep the Bitcoin network operational and secure. An energy consumption that has come to exceed that of an entire medium-sized country, and that can be compared to the consumption of the United States for 2019, according to a report published by the International Energy Agency (IEA).
It may interest you: Gazpromneft shows a new horizon for Bitcoin and cryptocurrency mining
Bitcoin mining situation in the world
Although the energy consumption of this activity is not as serious as many want to alarm, and is even lower than that of other industries in the world, it is true that it is causing a level of damage to the environment. For example, Iran is currently facing a regrettable situation that is related to the intensive Bitcoin mining in that country. Several cities in this country are suffering long blackouts due to an increase in energy demand. This added to the fact that the country lacks an electrical infrastructure and adequate resources to meet the growing demand. A situation that has led power plants to burn fuel oil, a cheap and low-quality fuel to sustain the high energy consumption, which is supposedly related to illegal Bitcoin mining, according to reports. reported various local media.
The burning of this fuel is plunging several cities in Iran into a thick layer of toxic smog, which can cause serious respiratory and lung problems in the population. To stop this situation, the country's government is closing unauthorized mining farms and forcing users to sell their mining equipment. In addition, Iranian government authorities have seized more than 6.000 of these machines that were operating without authorization in the country.
However, this is not the general situation with Bitcoin mining. In fact, in Russia, recently the gas and oil giant Gazprom, through its subsidiary gazpromneft, implemented a new power plant that transforms waste gas from oil activity into clean and sustainable energy for Bitcoin mining and other cryptocurrencies, . This initiative, driven by American companies Upstream Data y Crusoe Energy Systems, takes advantage of all the CO2 released into the environment by oil production plants to generate an energy supply that supports the activity of miners in an environmentally friendly way.
Interest in the environmental footprint of cryptocurrencies
Although the focus on this topic is on Bitcoin, as it is the largest and most well-known network in the digital ecosystem, the possible arrival of other cryptocurrencies and digital currencies to the ecosystem may also increase the energy consumption of the entire network. For example, the IEA points out that if Facebook launches its digital currency project, the energy consumption of the crypto industry will increase significantly, as this is a currency with more than 2.000 billion potential users. The possible arrival of this digital currency has once again sparked interest in the energy consumption demanded by the industry, the agency noted.
“With the value of bitcoin tripling in recent months, interest in the energy use of cryptocurrencies is on the rise again.”
Likewise, the IEA also points out that the boost in the price of Bitcoin causes more miners to want to connect to mine bitcoins, making the network grow and causing an adjustment in its mining difficulty level and in its hash rateWhen this happens, miner manufacturers are usually forced to develop new, more powerful hardware equipment to ensure mining, increasing the network's energy consumption.
Liquid Immersion Comes to Bitcoin Miners
Bitcoin network miners are aware of the serious situation that the network's energy consumption can cause to remain operational, and have therefore devised feasible solutions that help minimize the impact and environmental footprint of this activity.
In addition to promoting new ways of generating clean energy to sustain mining, other mining manufacturing companies are designing a new generation of these devices that guarantee more optimal performance and allow for better network yields in an environmentally friendly way.
In this sense, Canaan announced Recently the launch of a new miner model, called Avalon Immersion Cooling Miner A1066I, which works by liquid immersion to improve the performance of the equipment, and reduce energy consumption and costs; since it does not require an additional cooling system. The new miner model of this company uses an immersion system with dielectric fluids, which help prevent damage from corrosion and short circuits, and guarantee lower energy consumption. Canaan promises that its new equipment allows miners to enjoy a mining experience “silent and ecological”.
0,3% of global energy consumption
As we already mentioned, the energy consumption of the Bitcoin network is not as serious as many would have us believe, as the IEA itself pointed out that the network currently consumes about 80 TWh per year, which is equivalent to 0,3% of global energy consumption. Despite this low consumption, compared to other industries or the total energy used globally, the projections about its increase, as the network grows in adoption and difficulty, is what worries some experts. Despite all this, there is no doubt that the alarm about Bitcoin's energy consumption is excessive. Not only that, given the enormous economic impact of this technology, its energy consumption is well justified, and as technology advances, this consumption will flatten out over time.
Continue reading: Square Crypto finances development of Stratum v2 for greater freedom and security for Bitcoin miners
