Bitcoin Mining Council: Mining is Becoming Eco-Friendly
Mining is one of the world's cleanest industries! Such an ambiguous statement was made by the Bitcoin Mining Council (BMC). Is BTC really ecologically pure? Let's try to figure it out today.
A Teensy Bit of Backstory
In May, it was revealed that Tesla would suspend accepting bitcoin as a payment method for its products. The main reason: digital gold mining threatens the global environment. What is more, Musk created negative sentiment among American investors towards cryptocurrency. According to the Investing.com survey, the ecological stress stops almost half of the respondents from investing in bitcoin. Approximately 70% would prefer a more "green" coin. Almost 40% learned that BTC could have negative effects on the environment from Musk's tweets.
Such acts from the billionaire were seen by many as a betrayal. Nevertheless, it turns out that the electric vehicle company goes on believing in the future of BTC, but it should be eco-friendly.
To prove that greener mining is possible, the Bitcoin Mining Council was established. It was initiated by Elon Musk and Michael Saylor, the head of the business intelligence firm MicroStrategy. The organization's primary focus is to increase the greening of mining. Those who join BMC must voluntarily provide information on their energy consumption and hashrate for research and educational purposes.
The Result of the Study
The BMC has recently published a report that describes energy sources for mining. The survey received responses from more than 32% of all BTC network miners. It turns out that 56% of the energy used comes from renewable sources. This report is another fine illustration that the problem of bitcoin's impact on the environment is exaggerated (discover more here).
Unfortunately, not everyone welcomed the news positively. Larry Cermak, the Head Analyst at The Block, believes that collecting information during the movement of Chinese miners to other countries is a bad idea (more about the effects of the Chinese crackdown in our article). In his opinion, it is better to conduct a study when they completely move the equipment and go back to normal duties. Some experts stressed that the information provided was not verified.
To illustrate an entirely different point, 32% of miners is an excellent result. That view belongs to Nic Carter while he agrees that to interpret the survey of mainly North American miners for the entire industry is not quite correct. According to the co-founder of Coin Metrics, the real percentage of renewable energy is about 50%.
Despite criticism, BMC has a real chance to give the world a visual of mining being environmentally friendly. Further proof of the above can be the Greenidge Generation plans to launch the next BTC mining facility in South Carolina. Thanks to the company's commitment to "ecological leadership" in operations with virtual currency, the facility in Spartanburg will be carbon-neutral.
Moreover, we can't blame miners for using "dirty" electricity. If there is a "green" electric structure in the country, then crypto fans will most likely choose it. And if digital cash switches to alternative energy options, it may become a "green" cryptocurrency.