Bitcoin Is the Cornerstone to a Greener Future
Bitcoin is and will always be first, generating a significant stir globally for its seemingly outlandish propositions and divergence from the accepted way of doing things. There has been clamor that the environmental ramifications with its upkeep are too significant and that any benefits gained are outweighed by its ecological upkeep costs. This remains a popular view for now, but the opposite thesis does exist, and it boasts significant allure.
Bitcoin and the crypto sphere as a whole may have taken a beating recently, but market corrections often present ideal buying opportunities. Overheated token sell-offs sometimes cascade lower than expected but typically lead to healthy rebounds. BTC is still maturing, and at ProBit Global, our excitement surrounding its potential impact is fully intact.
To sweeten the deal for new traders entering the ranks of BTC holders or HODLers looking to average down and elevate their BTC positions, ProBit Global is offering a suitable BTC buying opportunity. This June, ProBit Global is running the eagerly anticipated ProBit BTC exclusive, where a ramped allocation of $100,000 BTC at 50% off will be up for grabs. The 100,000 USDT allocation cap will be distributed across four exclusive rounds and will enable those forced out of their holdings due to plummeting token prices to re-enter the market for the long term.
Long-term BTC growth prospects are still promising, with new evidence suggesting the BTC holders of today may become the core miners of tomorrow.
An inchoate but intriguing idea
In late April 2021, A white paper released by financial service company Square, led by Jack Dorsey, framed Bitcoin as a fundamental facilitator to a cleaner, more resilient electricity grid.
At first glance, this may evoke a stark dichotomy in the reader’s mind, especially those swayed by the “Sweden energy consumption comparison” traditional media latched onto earlier this year. It presented an ideal clickbait headline to feed an insatiable 24-hour news cycle but fails to recognize the fundamental difference between energy consumption and carbon emissions.
Switzerland produces almost 2–3x CO2 than Bitcoin, according to IEA estimates. Energy usage statistical references are at best misleading, as they don’t offer a genuine glimpse into the true environmental impact of Bitcoin mining.
Bitcoin does eat significant power, but it creates value with the energy it consumes. Forward-thinking adopters can recognize how Bitcoin will catalyze the proliferation of a greener electrical grid, principally through its incentivization of renewable power sources such as wind, solar, and hydro. This is the core of Square’s white paper.
The Argument
BTC miners are already disproportionately enabled through zero-carbon sources, with hydroelectric being one of the most commonly utilized. Some of the most significant BTC farms are located in Northeast China, primarily due to cheap hydroelectric energy, offering a more affordable alternative to coal.
Current estimates suggest that 74% of the energy used in the BTC mining process comes from renewable sources. Decreasing expenses associated with solar and wind globally poise this mining share to grow. Square does have some skin in the game, with BTC purchases in the hundreds of millions of dollars, and has recently launched the Bitcoin Clean Energy Initiative to incentivize clean mining.
In addition to the energy scourge argument, BTCs market cap is especially relevant to this discourse. The Bitcoin network as of 6/8/2021 is worth around $1.5 trillion, which is no different from any other mature industry. The Bitcoin ecosystem does use significant energy, but it creates economic value. The question critics should be asking is whether the Bitcoin network as a whole is a worthy pursuit or a waste of energy and time? If BTC holders derive value from either its store-of-value properties or transacting in BTC, it does.
The driving “green case” for Bitcoin is its capabilities to catalyze the growth of the electrical grid. Providing renewable energy generators with an outlet to monetize excess outputs that would otherwise go to waste would get the ball rolling. Solar farms on sunny days may have extra energy if their output trumps consumer demand; in this case, companies could sell their remaining energy for reduced rates to BTC miners. Similarly, a wind installation at peak production during the night but met with low demand or a hydroelectric power firm producing more energy than usual during spring floods could benefit equally.
If firms experiencing these conditions could leverage Bitcoin miners as a cheap sale, a symbiotic relationship could develop. Both BTC miners’ and energy producer’s profits and carbon emissions remain static.
One of the more unassuming opportunities is within the oil and gas industry. When demand for fuel wanes, gas can become more expensive to transport or store than it is to sell. If this pricing phenomenon occurs, oil firms will employ a strategy known as flaring, which is when oil producers burn off excess oil leading to large amounts of CO2 output. Bitcoin miners could buy this extra power for reduced rates and drastically reduce carbon emissions into the atmosphere.
Nic Carter, a partner at Castle Island Ventures, concluded that flared gas alone could power the entire Bitcoin operation. Bitcoin miners are uniquely positioned energy buyers that don’t require consistent energy delivery, are location agnostic, payout in liquid globally transferable currency, and require only an internet connection to maintain operations. These qualities constitute it as an exceptional asset, the buyer of last resort energy.
Opponents of this idea do exist, citing that this would fan the flames of the oil and gas industry. These critics gloss over the fact that oil isn’t going anywhere any time soon and that remediating environmental damage in the meantime is a worthwhile pursuit.
Bitcoin is already incentivizing and inspiring a transition to renewable energy in certain capacities. In British Columbia, Canada, DMG Blockchain’s mining operation is solely powered by hydropower and they recently rolled out the first clean energy BTC mining pool. Small steps, yes, but in the right direction.
Global interest in crypto from central banks and Wall Street has continued to rise and spur dialogue regarding its power usage. There is growing pressure on corporations to transact with “green crypto” in accordance with a firm’s employed environmental policies. One day, BTC mined in an environmentally damaging way could be seen as lesser than those mined with renewable energy. Only time will tell.
The Bitcoin and energy industries are converging at a rapid pace, and an unexpected symbiosis is forming. Square believes “the energy asset owners of today will likely become the miners of tomorrow,” which remains a possibility if Bitcoin continues on its current trajectory. Executives, sustainable infrastructure funds, and grid-scale storage are uniquely positioned to take this bull by the horns and expedite Bitcoin’s transition to net-zero carbon. Significant investments allocated to nurturing this blossoming companionship should prove to accelerate the process significantly. Bitcoin is just getting started.
