Turning Geothermal Energy into Prosperity with Bitcoin | Editorial by Blockonomist | The Capital | June 2021
Cryptocurrencies like Bitcoin have been in operation for more than a decade, and their functions are very similar to ordinary currencies. The only difference is that they are not regulated by the government or the banking system. Therefore, cryptocurrency is decentralized and uses miners to verify transactions.
widthWithout discussing Bitcoin mining in detail, let us focus on its energy consumption. To be precise, it will be more computing power; more will be energy demand.
Learn more about Bitcoin mining here
Due to the expansion of mining operations, the demand for base load power has increased. Bitcoin mining requires a lot of energy. Data shows that Bitcoin mining consumes nearly 105 TWh of energy globally every year. Therefore, we cannot rely solely on non-renewable energy sources.
In addition, it is well known that Bitcoin mining promotes global warming by producing carbon dioxide. Therefore, geothermal energy plays a considerable role. As a renewable energy source, geothermal energy can provide electricity for mining throughout the year.
You can learn more about encrypted energy consumption here
Although renewable energy sources such as solar and wind energy can be used for mining, their capacity coefficient is limited. Therefore, technically speaking, due to its high capacity factor, we only have geothermal energy as the future of mining.
Geographical location does not restrict crypto mining, so it is not restricted by distance from consumers. Mining facilities can be used anywhere in the world. This requires the development of off-grid geothermal power plants to enable developers to commercialize the potential of geothermal.
Recently, on June 9, El Salvador planned to use volcanic energy to mine Bitcoin. It is said that the energy from the volcano is 100% renewable and 100% clean. This step was taken in consideration of the harmful effects of Bitcoin mining on the environment.
So, how to use volcanic energy? It’s very simple; the heat present in the volcano heats the groundwater, which creates a stream of steam. Steam can spin turbines to generate electricity, and electricity can further help Bitcoin mining. Is not it simple?
More than 65% of El Salvador’s electricity comes from renewable energy sources. Currently, the country’s geothermal capacity exceeds 200MW.
The use of sustainable energy for mining is not new. Iceland is a popular example of the use of cheap and sustainable energy. However, the increasing number of clean and renewable resources used in Bitcoin mining methods clearly shows that more and more people are now concerned about the environment, which is a good sign.
The use of Bitcoin is particularly important to the growth and development of any country. The growing focus on removing its limitations is a good thing for 2021.
notes: This report focuses on how we use geothermal energy to mine Bitcoin. To read more about Bitcoin mining and energy participation in the mining process, please refer to the above link.