Bitcoin and other PoW cryptocurrencies are facing a difficult test due to their alleged climatic effects. A new North American Bitcoin mining council featuring Elon Musk hopes to change that.
While Bitcoin miners in China are recovering from the aftermath of the latest attack on cryptocurrencies in the country, they on the other side of the planet are reportedly forming a new council to promote sustainable mining.
Involved in the cause are American mining companies, Bitcoin firms and Tesla’s CEO Elon Musk himself.
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.
– Elon Musk (@elonmusk) May 24, 2021
“I spoke to North American Bitcoin miners. They pledged to publish current and planned renewable use and to ask WW miners to do so, ”said Musk in a tweet this morning. “Potentially promising,” he added.
Bitcoin power problem
Mining uses a huge computing system that solves millions of complex calculations every second to validate transactions on the Bitcoin network (a process known as “PoW”).
This, however, requires large amounts of energy for the maintenance, cooling and operation of the machines. But some say that, as the source of this is through energy producers powered by coal and fossil fuels, it leaves behind a large carbon footprint for apparently little benefit to the world.
What has been said above has become a matter of public relations for companies. Most institutional investors seem to know the benefits of owning Bitcoin (or other large-cap cryptocurrencies), but the weather damage that follows poses a problem.
Tesla, the electric automaker led by Musk, is an excellent example of this. The company started accepting Bitcoin as a payment method for its vehicles earlier this year, but just a few weeks later, it said it would shut down due to the “ecological impact” of using Bitcoin.
The green solution
A proposed solution offers a simple way out: Use renewable sources, or waste of energy, to mine Bitcoin and, theoretically, reduce the supposed climate problem.
And some of North America’s top miners are already on board:
“Sustainability has always been at the heart of Argo’s mining operations and the newly formed Bitcoin Mining Council is the next logical step to promote a sectoral shift towards renewable energy,” said Peter Wall, CEO of Argo Blockchain.
“I enjoyed talking to Elon Musk about these issues this weekend and I look forward to joining Michael Saylor and other leading North American miners at work for a future-ready industry that should collectively improve sustainable mining practices and lead ESG concerns seriously. ”
Bitcoin mining consumes more electricity than all of Argentina. But that could change soon.