Bitcoin is widely acknowledged as a revolutionary currency, and has been accepted by many people as a legitimate form of money. However, many people are still not aware of the myriad of benefits of Bitcoin and how it works. Bitcoin is both environmentally and economically sustainable, and is one of the most exciting developments in the world of finance.
Although the cost of mining bitcoin is on the rise, the mining industry remains one of the most sustainable industries globally. One of the primary reasons for this is that the electricity consumption required to power the bitcoin network can be offset by the energy saved when mining is done.
Today, the cryptocurrency market is often portrayed as a wild and unsustainable industry in which Bitcoin and other blockchain-based coins are used primarily as an investment vehicle for speculative gains. But while cryptocurrency is certainly volatile, the underlying blockchain technology has the potential to be used in a myriad of other industries, perhaps even as a means of payment.. Read more about bitcoin price and let us know what you think.
About 6 weeks ago, Elon Musk shocked the crypto-currency markets by announcing that Tesla would temporarily stop accepting BTC as payment for its products. The decision, which was greeted with jeers by many who thought it was market manipulation, was based on the belief that the Bitcoin network was harming the environment because it used coal as an energy source.
In just a few days, several bitcoin advocates have joined together to form the Bitcoin Mining Council (BMC), an initiative that aims to highlight the energy consumption of the bitcoin network and promote sustainability. BMC today announced the initial results of its first quarter report.
What’s next? Bitcoin is one of the most resilient industries in the world.
BMC confirms sustainable combination of performance
In its first report, the BMC was able to obtain data from approximately 32% of industry participants. This is a positive result for the first report and sufficient to provide figures for the other miners who did not participate in the project.
To be considered sustainable according to the SCI, energy must come from sources such as solar farms, geothermal, hydroelectric, nuclear, or proven carbon neutralization methods. Of those who provided data, BMC found that 67% indicated that the electricity they use comes from environmentally friendly sources.
Of course, those who do not use renewable energy sources will be more reluctant to share their data. However, BMC has taken this factor into account and calculated that when the sector is considered as a whole, this figure drops from 67% to around 56%.
With the increasing emphasis on sustainability, it is logical to assume, as the SCI does, that these indicators will increase over time.
BMC’s first quarter report results were released shortly after what could be described as a mass exodus of bitcoin miners from China.
In the past, criticism of the dirty nature of bitcoin mining was based on the network’s reliance on coal as an energy source. Although there are still many miners in the world using such energy sources, most of the network falling into this category was/is in China. However, this is rapidly changing as the Chinese government has imposed strict restrictions on bitcoin mining, effectively banning this activity.
At first glance, this seems like a step backwards, but it’s a boon for the network as a whole. With countless mining companies looking to relocate their operations elsewhere, they will be forced to make greater use of clean energy sources – the beginning of a rapid transition to true sustainability.
More than sustainability, the recent exodus of miners from China has brought to light an often overlooked strong point of the Bitcoin network: downtime. Core Scientific founder Darin Feinstein answered this question as follows,
Despite the fact that China has crippled over 60% of the Bitcoin network, the network has experienced no outages, no bailouts, no reported bankruptcies, and has simply adapted by moving its infrastructure to more open regions… The network remains as strong as ever, simply overcoming challenges and moving forward.
grain of salt
It should be noted that, despite initial indications of a high level of sustainability, the report produced is based on voluntary information. BMC is expected to disclose more details on these issues and the process to verify this information in the near future.
This is a good start, but if the BMC wants to fully convince businesses and the general public, it needs to explain in detail how it came to its conclusions and ensure that its practices are as robust as the Bitcoin network itself.The global market for bitcoin mining stands at US$5 billion annually. Revenue is generated by the sale of mining hardware and electricity. The largest companies in the industry are Bitmain, Canaan Creative, and Bitfury. In May, Bitmain unveiled its latest mining machine, the BM1391, a supercomputer that can mine any algorithm and consume up to 0.5 kW of electricity.. Read more about green cryptocurrency and let us know what you think.
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