Elon Musk and Jack Dorsey Back Research on Bitcoin Mining Efficiency
Research by Ark Invest and Square has been released arguing that Bitcoin mining can improve the efficiency of the renewable energy sector. The research has received support from Bitcoin investors such as Elon Musk and Jack Dorsey.
Environmentalists have repeatedly shown concern over the high energy consumption caused by Bitcoin mining and the damage this causes to the carbon footprint. However, some of the prominent supporters of Bitcoin have come out to state how Bitcoin mining can help in improving environmental efficiency.
Square and Ark Invest have spearheaded the research into this topic. They have written a paper illustrating how Bitcoin mining can bring efficiency in the production of renewable energy.
The BCEI white paper
The Bitcoin Clean Energy Initiative (BCEI) white paper details the research undertakes by Square and Ark Invest in a move to dispute claims that Bitcoin mining is damaging to the environment. The paper argues that Bitcoin mining brings efficiency in the production of energy from renewable sources.
The BCEI white paper has received incredible support from major players in the Bitcoin sector, including Jack Dorsey of Square, Elon Musk of Tesla, and Cathie Wood of Ark Invest.
In a tweet by Square Crypto, the company states that efficiency has not yet been achieved in the renewable energy sector. The tweet argues that despite alternative sources of energy such as solar and wind being cheaper, they cannot meet high demands. On the other hand, solar and wind also suffer from excess supply when demand is low.
If bitcoin needs anything, it’s more white papers. In this one, @Square and @ARKInvest team up to argue for bitcoin as a key driver of renewable energy’s future: https://t.co/UmayxNtCFJ
Hate reading? Here’s the nutshell version:
— Square Crypto (@sqcrypto) April 21, 2021
To solve this problem, it necessitated the creation of an efficient ecosystem on renewable energy sources. Under this system, solar and wind energy sources would be integrated with Bitcoin mining to create a system that mostly runs using renewable energy.
Creating a win-win situation
The white paper argues that the excessive supply exhibited by solar and wind energies can be channeled to mining farms. Besides, the global Bitcoin mining sector could also triple, with miners using the 20% of wind and solar energy that lies on the U.S. power grid.
Besides, if miners would only turn to electricity as a last resort, it would improve the profitability of the renewable energy sector. Besides, it would also increase the sector’s profitability as energy prices could be arbitraged using Bitcoin prices.
However, the paper has not received 100% support. Mati Greenspan has stated that the white paper did not offer any solutions to Bitcoin’s high energy consumption.
Alright, I’m just gonna come out and say it. Bitcoin mining is bad for the environment. #bitcoin #EarthDay2021
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) April 22, 2021