Opinion: A mining ban in China would improve Bitcoin mining’s environmental footprint

Hydropower, geothermal, solar and wind energy already provide a significant share of Bitcoin’s hash rate, and possible mining ban in China would reduce its coal-based component. This view was voiced by Daniel Frumkin of Braiins.

1/ I did some analysis on mining #bitcoin with solar power and gave my two sats on the energy FUD.

In case you’d rather keep scrolling than go read the full thing, I’ll summarize below 🧵👇https://t.co/Rr88rrFNM1

— Daniel Frumkin (@dfrumps) June 1, 2021

According to him, critics of the environmental impact of cryptocurrency mining do not take into account the growth in the use of associated gas by miners. The volume of gas emitted into the atmosphere or burned off by oilmen in the United States alone is enough to generate 162 TWh of electricity per year, while the Bitcoin network’s consumption stands at 116 TWh, Frumkin noted. The use of this resource to power mining is rising in Russia and Kazakhstan.

Read about how cryptocurrency is mined at oil wells in Khanty-Mansiysk in ForkLog’s special project.

Frumkin noted that the very notion of the environmental friendliness of renewable energy is somewhat conditional. For example, one of the world’s largest solar panel production hubs is in China’s Xinjiang province, where coal-powered energy is used for this. The production of solar panels involves a large amount of fossil raw materials, the extraction of which harms the environment.

The Braiins engineer argues that the growing energy consumption of the Bitcoin network, which critics point to, does not by itself indicate the actual environmental impact of mining.

Frumkin also conducted a financial analysis of Bitcoin mining on solar energy and confirmed the viability of the model proposed by Square and ARK Invest. The experts from the companies say that integrating mining into the power grid will accelerate their transition to renewable energy sources.

Frumkin reminded that it is the ‘green’ energy that provides the lowest tariffs. There are also other potential advantages of using renewable energy, including government subsidies and access to cheap loans that authorities provide under environmental programs, the expert noted.

Earlier, discussions on the environmental sustainability of mining intensified after statements by Tesla founder Elon Musk. ForkLog examined the topic in a feature:

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