Bitcoin mining could contribute to the shift toward renewable energy, according to analysts from Square and ARK Invest.
If bitcoin needs anything, it’s more white papers. In this one, @Square and @ARKInvest team up to argue for bitcoin as a key driver of renewable energy’s future: https://t.co/UmayxNtCFJ
Hate reading? Here’s the nutshell version:
— Square Crypto (@sqcrypto) April 21, 2021
According to their study, integrating mining into power grids could raise the share of electricity from renewable sources without harming profitability. In their calculations, the analysts used real data for the city of Austin, Texas, solar-energy economics, and cryptocurrency mining.
They note that solar energy can provide electricity at cheaper rates than fossil carbon sources. However this generation has a fundamental drawback: during periods of low demand, excess capacity is produced, and during higher demand — energy is in short supply. The problem is addressed by using battery storage, which affects the profitability of electricity production and its price.
According to the experts, solar power could supply up to 40% of the grid’s needs before industry participants face the need for substantial investments in storage capacity and higher electricity tariffs.
The integration of Bitcoin mining can transform such intermittent energy into baseload-generating facilities.
In the conducted “proof of concept,” Square and ARK Invest calculated that, depending on the scale of the mining business, the share of renewable sources in energy consumption could be raised to 99%.
The model developed by the experts, after meeting demand from consumers based on profitability, decides whether to hook up Bitcoin mining or to charge batteries.
Earlier, Square allocated $10 million to support cryptocurrency mining using renewable energy sources.