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It is often seen that the blockchain industry is criticized for its energy usage and its impacts on the energy sector. Environmentalists and government officials argue that the Bitcoin network requires a lot of energy to secure itself. Statistics reveal that it consumes even more energy than some small countries.
However, today let’s look at how Bitcoin mining has introduced new ways that can prove to be beneficial in the long run.
The biggest benefit of the booming crypto mining industry is that it utilizes energy that before mining was completely wasted, for instance, natural gas at oil drilling facilities is flared.
The oil drilling industry was discovering natural gas pockets as its routine task, and the gas was usually burned, in a process known as “flaring,” up until quite recently. It is done because there is no proper infrastructure required for its collection.
As Bitcoin became mainstream and its value rose, the search for inexpensive energy sources began. The search led to the Installation of shipping containers filled with mining equipment at drilling sites that can use the energy produced from the flaring process for mining BTC.
Blockchain-based smart grids that are designed to improve energy distribution on a bigger scale, is another side-benefit of crypto mining.
Even at retail level, we can see the inefficiencies in electricity distribution. Smaller firms, who have a little portion of the electrical grid infrastructure, majorly offer monitoring meter usage and billing services.
Blockchain technology and Internet-of-Things- (IoT)-devices, that assist customers to bypass retailers and connect directly with wholesale distributors, can easily handle such services and reduce electricity bills by upto 40%.
Other benefits of crypto mining activities are enhanced energy infrastructure and prioritizing the development of sustainable energy generation.
As per the Bitcoin Mining Council Studies, there is a significant rise in the amount of energy derived from sustainable sources, instead of sources like coal and oil.
Besides, less developed countries such as El Salvador and Kenya have benefitted from the improved energy generation infrastructure from sustainable sources such as geothermal power plants, leaving them with an additional source of revenue.
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