With the predictions for Bitcoin as the new currency system throughout the world, the future health, wealth and sustainability must be greener than other industries in this important era of climate change.
A recent report put together by Reed College Professor and a fellow of the Bitcoin Policy Institute, Troy Cross, suggests that proof-of-work mining can only be a huge positive for the environment, decarbonizing the landfills and making the grid more efficient, which will naturally lower the cost of energy over time.
KPMG Report
Those assertions made by the esteemed scholar were backed up by a report from KPMG (Klynveld Peat Marwick Goerdeler) that believed Bitcoin could help sustainability and ESG (Enviromental Social and Governance) functions through many different channels.
They view it as important to bring new investors into the industry who are interested in the renewables of monetizing stranded energy and power grid stabilization.
The report challenges the Wall Street conventional wisdom, and in the words of the authors states that,
“Bitcoin appears to provide a number of benefits across an ESG framework.”
Renewable Energy Benefits for Bitcoin
Power Grid Stabilization
To aid and balance stability on the power grids, Bitcoin has a huge part to play by the miners soaking up excess energy.
#Bitcoin miners acted decisively this week to stabilize the Texas power grid, with excellent results. Despite an intense heat wave, the grid is operating normally, and officials say there are ample supplies to meet demand.https://t.co/68xweNow3I
— Michael Saylor⚡️ (@saylor) June 13, 2022
This would inevitably help suppliers insulate the system from those nasty spikes in usage when too much demand or energy production can overload the grid.
Methane Emissions Reductions
The KPMG reports state how methane is a huge ongoing problem in the fight for climate change, accounting for 30% of the overall problem. Interestingly, the report also details how methane can be up to 80% more toxic to the environment than carbon dioxide.
Vented methane from landfills is now being redirected by companies who are turning it into electricity to mine their Bitcoin. Should this good practice be escalated over time, then we can expect all stranded land-contained energy to be used efficiently and monetized into digital profit. That is a win-win scenario for society, which will have a noticeable reduction in future toxicity from landfills.
Electricity Used by Miners Will Naturally Be the Cheapest
Bitcoin miners will always use the cheapest energy for their process.
This is because energy can account for 70% of their cost, which means they will have maximum motivation to source all savings possible on energy. We all know what energy prices are doing to our households or businesses, and therefore, any savings and reduced costs in the future will be greatly received in the mining community, as well as in the crypto betting sites.
It can be taken for granted that Bitcoin will always look for the cheapest energy suppliers around the globe.
Logically, Bitcoin will never push up the utility rates because, if the entry of miners pushes prices significantly upwards, those prices quickly become more expensive and the miners will relocate their operations.
We must always bear in mind that on an environmental level, the cheapest energy supplier in the world will inevitably be the one that currently no one wants or is aware of.
The United Nations stated this whole process had the potential to be the,
“The strongest lever we have to slow climate change over the next 25 years.”
Digital Wager Wire Conclusion – How Green Bitcoin Is?
Despite the conventional knowledge bestowed on us by Wall Street and many traditional financial institutions, Bitcoin is indeed very sustainable for the climate long term and a greener society.
We found that the United Nations believes that Bitcoin miners have a fundamental part to play in sustainability due to their unique abilities when it comes to using stranded methane in landfill or any other areas of land. This will naturally reduce toxicity for the environment and the UN believes that could be a huge lever, if not the single most important lever for provoking a strong change.
The stabilization of power grids is a huge positive, naturally complementing the gap between high demands and large supply by acting as a sponge.
This will safeguard and lessen the outages over time.
There are many reasons for us as a society to feel positive that Bitcoin is very green and naturally inclined to aid environmental change more than many, if not all industries.
