Square, the payment company of Twitter CEO Jack Dorsey, has teamed up with Ark Invest, a major investment firm, to release a new report on bitcoin mining.
The report states that the computing power to run the Bitcoin (BTC) network is nowhere near as damaging to the environment as claimed, and that the cryptocurrency actually encourages the use of green energy. Tesla CEO Elon Musk agrees.
The report states that energy from sun, wind and water is produced more cheaply than from fossil fuels, but that it produces surplus energy when relative demand is low and produces too little when demand is high.
“The end result is considerably more power than society normally needs for a few hours a day and not nearly enough when demand rises. This challenge also takes place seasonally. “
This surplus energy could be supplied to bitcoin miners, in some cases this is already happening. According to the research, bitcoin could eventually run on a network of exclusively green electricity, which would also benefit the energy sector. According to a study by the University of Camebdrige, 40% of bitcoin mining comes from green power.
Yet not everyone agrees with the report’s findings. Mati Greenspan, a well-known crypto analyst, even calls it misleading.
"The main focus of the paper does not seem to be so much to seek solutions as to justify Bitcoin’s massive energy consumption and paint a rosy picture of how it could positively impact the clean energy sector."
David “JoelKatz” Schwartz, CTO of Ripple says.
“To say that bitcoin is driving the development of clean energy is like saying that gas guzzlers are driving the development of electric cars. The problem with growing clean power is not that there is not enough power demand. If clean electricity is cost-competitive with dirty electricity, it will grow. If not, artificial stimuli are needed to grow. It’s that simple. More demand does not matter. ”
He says the only solution for Bitcoin is to move away from the underlying proof-of-work (PoW) mining system. Ripple founder Chris Larsen said that yesterday.
Crypto Insiders recently stated that Cambridge Bitcoin Electricity Consumption Index (CBECI) currently estimates the consumption of Bitcoin at 110 terrawats per hour, more than the whole of the Netherlands consumes.
The hash rate, or computing power of the Bitcoin network recently dipped below 100 EH / s due to an occurrence in Chinese coal mines, it is slowly recovering. Reportedly, Bitcoin mining consumes nowhere near as much as mining gold and the banking system.