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November 27, 2022
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Square: Bitcoin mining may accelerate the use of renewable energy

Square, in collaboration with ARK Invest, has published a white paper to show how bitcoin mining can accelerate the use of renewable energy.

O article made by the Bitcoin Clean Energy Initiative aims to be a common starting point for sharing a new vision within which bitcoin mining, in combination with renewable energy and energy storage, could be particularly suited to accelerating the ongoing energy transition process.

ARK Invest, Cathie Wood’s renowned investment fund that is taking a keen interest in bitcoin, also participated in the writing of this article, published by Square.

ARK Invest has produced a model that shows how bitcoin mining can really help increase the use of renewable energy and energy storage, as well as promote the development of a new network and reduce electricity costs.

According to Square, solar and wind power produce cheaper energy than fossil fuels, which should make these renewable energy sources ubiquitous.

However, their implementation is hampered by an obvious limitation, that is, they produce energy not when they are needed, but often when demand is low. Batteries can solve this problem, but they are not cheap enough.

Square bitcoin mining project

To overcome this limitation, a new ecosystem would have to be built where solar, wind, batteries and bitcoin mining coexist to form a “green network” based almost exclusively on renewable energy.

According to the Bitcoin Clean Energy Initiative paper, this would be feasible without compromising the sector’s viability.

In addition, it is speculated that the bitcoin and energy markets are converging, with energy asset owners likely to become miners in the future.

The article states:

“Utility executives, sustainable infrastructure funds and grid-scale storage developers are well positioned to accelerate this future by aligning their strategic roadmap and deploying large-scale investments in the emerging synergy between bitcoin mining and clean energy production.”

In other words, bitcoin mining can play a concrete role in facilitating the rapid development of a new energy infrastructure capable of storing energy produced from renewable sources and then distributing it when demand increases. It is a large project, which in theory could revolutionize the production and consumption of energy, favoring the use of renewable sources over pollutants.

Source: cryptonomist

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