Bitcoin to speed up energy transition to renewable energy sources, Square reports
Fintech giant Square has published a white paper making the case that Bitcoin is a catalyst for greener energy consumption.
The white paper was released as part of Square’s Bitcoin Clean Energy Initiative. This is an effort to support companies working to integrate forms of environmentally sustainable Bitcoin mining. The paper claims that Bitcoin mining and renewable energy are “well suited” to speed up energy transition.
The message outlined in the report seems to resonate with Elon Musk who responded to the news on Twitter:
True
— Elon Musk (@elonmusk) April 22, 2021
https://platform.twitter.com/widgets.js
Going green is the best option
The key point outlined in the paper is that Bitcoin mining is an opportunity and “key” element for a global transition to renewable energy. Adoption of clean energy sources, like solar and wind power, have hold-up because of unreliable power supplies and grid congestion. According to Square, Bitcoin miners can serve as a “flexible load option” which would enable power grids to deploy “substantially” more renewable energy.
The white paper makes the case that hydro, wind, and solar power are all cheaper than fossil fuel energy sources like coal.
The paper reports that Bitcoin mining brings “ideal complementary technology for renewables and storage.” The combination of Bitcoin mining with renewables and storage projects, would make the renewable energy like solar and wind become more profitable.
This enhanced profitability would then act as a catalyst for new wind and solar projects and provide renewable grids with readily available “excess” energy. This would then encourage investment in solar power or other forms of renewable energy.
The idea of Bitcoin acting as a catalyst in the transition to green energy is not new. A large portion of current Bitcoin mining is already based on renewable energy. A good example of this is Pakistan. Considering the “decentralized nature” of Bitcoin(mining), that allows miners to “optimize” their operations, we can expect this trend to continue.
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Source: igaming
