What a „green bitcoin“ could mean for the crypto mining industry
London-based cryptocurrency company Argo Blockchain has announced plans to create the world’s first clean energy bitcoin mining pool. The company confirmed its partnership with DMG Blockchain Solutions to launch the world’s first bitcoin mining pool powered by clean energy.
Bitcoin’s energy consumption continues to skyrocket
Bitcoin’s environmental concerns are nothing new. Crypto critics have always questioned the high power consumption of miners, but as Bitcoin has risen to new heights and found itself in the spotlight once again, Bitcoin Code power consumption has risen to an astronomical figure.
Simply put, rising Bitcoin prices make mining more profitable – and give mining pools an incentive to expand their operations.
According to the University of Cambridge’s Bitcoin Electricity Consumption Index, Bitcoin miners around the world currently use 138.7 terawatts of electrical energy – nearly 0.5% of the world’s electricity consumption.
As Bitcoin prices have risen by almost 900% since March last year, the estimated annual consumption has also increased by 200%. With a recent peak of $61,500, Bitcoin’s annual electricity consumption (go to Plus500 Bitcoin buying guide) now exceeds that of developed nations such as Sweden, Switzerland or Finland.
Implications for the crypto-mining industry?
Amid growing concerns about Bitcoin’s energy waste, governments and tech greats like Bill Gates have questioned the utility and necessity of cryptocurrencies, even as the world becomes increasingly digital.
As governments seek to tighten regulations around the cryptocurrency industry, Bitcoin’s impact (see: Bitcoin cops take control) on the environment cannot go unnoticed. With the precedent now set, the rest of the crypto industry must follow suit – or risk potential political and regulatory tailwinds.
Argo Blockchain and DMG will switch their mining operations to hydroelectric power – an alternative, renewable energy source. In a statement, Argo Blockchain’s CEO emphasised the need for the mining industry to work together to find a sustainable solution:
„We hope other companies within the Bitcoin mining industry will follow in our footsteps to demonstrate broader climate awareness.“
„Addressing climate change is a priority for Argo and partnering with DMG to create the first ‚green‘ bitcoin mining pool is an important step in protecting our planet now and for generations to come.“