Bitcoin was created in 2008 and has since undergone more than a decade of development. While the basic concept of cryptocurrency has remained the same, uses for bitcoin and its adoption have grown and evolved. In 2022, one of the most important issues relating to bitcoin is the consumption of energy, particularly related to bitcoin mining. As many people strive for a greener world and try to protect the planet, sustainability has become a greater focus on the bitcoin landscape.
In the beginning, bitcoin was a niche interest of a select group of people. Most people without knowledge of technology and finance wouldn’t have even heard of it for years after it was first launched. Now even those who are less tech-savvy are taking an interest in bitcoin, whether because they want to diversify their investments, carry out secure and private financial transactions, or offer a new payment method to their business customers.
Bitcoin mining requires energy, time, and money. Today, it costs US$12,500 to mine a single bitcoin. However, much of the bitcoin currently in circulation didn’t use anywhere near as much energy or money as is required today. All it took was a simple laptop for the majority of bitcoin to be mined. More expensive and powerful mining equipment is now a must for bitcoin mining due to the increase in the energy that it uses. But the community is not going to take this lying down. Many in the bitcoin sphere are making efforts to change things, looking for sustainable energy alternatives for mining bitcoin. By using sustainable energy sources, the impact that mining bitcoin has on the environment can be significantly reduced.
One statistic says that in one year, bitcoin uses around the same amount of electricity as the entire population of Pakistan. Fortunately, investment in energy-saving technologies and concepts is helping to change this. Innovative companies like Mawson are committing to making sustainable choices that allow them to make bitcoin mining a much more eco-friendly prospect for businesses and investors everywhere.
At Mawson, we aim to be 100% net carbon-neutral by 2030 using methods such as offsetting our carbon emissions by planting trees. In 2022, we have committed to planting 53,000 trees. We have also put our support behind various sustainability projects in several countries, including the USA, Australia, Turkey, and India. Additionally, 75% of our operations currently use non-carbon emitting energy, including hydropower, nuclear energy, and wind power.
Multiple methods are currently being explored to make bitcoin mining more sustainable through clean energy usage and waste energy. The use of waste energy particularly can provide great opportunities for bitcoin mining facilities to be operated in sustainable ways. With a ban on bitcoin mining implemented in China in 2021, miners originally operating there are now looking for new homes. In the US and other locations, bitcoin mining operations could be located next to energy opportunities, taking advantage of the ability of mining operations to be located almost anywhere. Waste energy, stranded energy assets, and operating reserves belonging to power plants could all be used to power bitcoin mining.
Energy sources such as nuclear and wind can often produce high amounts of energy during low-demand periods. The capacity for storing this excess energy is often limited, meaning that it could go to waste. But by coupling these energy plants with bitcoin mining operations, two different activities can be made more sustainable. Energy plants avoid wasting money, while bitcoin mining facilities are able to use the clean energy that they produce to mine bitcoin more sustainably.
Along with a greater focus on sustainability, changes in regulation are also likely to make bitcoin a more attractive prospect. More governments and countries are adopting official frameworks for cryptocurrencies and digital assets, which helps to make it easier for businesses and investors to enter the market. A lack of regulation was appealing to the first adopters of bitcoin, but it’s something that needs to change if bitcoin is to continue growing.
Another way bitcoin adoption will be growing is through other digital asset companies helping to transform the cryptocurrency landscape. Payment gateways, hardware and software, exchanges, crypto holding, trading companies, and banking and asset management organizations are all making cryptocurrencies such as bitcoin more accessible to businesses and investors everywhere. One sign of this is the increasing number of businesses in the crypto space making the move to go public.
As bitcoin is increasingly adopted at a rapid pace, sustainability has become ever more important. 2022 is sure to see an even greater focus on sustainable bitcoin mining, among other things.
