A new study by researchers at Cornell University in the US suggests that solar and wind energy installations could generate hundreds of millions of dollars by mining bitcoin during periods of excess electricity generation.1
The study, which was conducted by a team of engineers and economists, found that setting up mining operations could not only reduce the environmental impact of cryptocurrency but also provide revenue that could be reinvested in future renewable energy projects.
“Profitability of a mining system hinges on periods of steady energy availability since renewable energy sources can vary significantly,” said Fengqi You, a professor of energy systems at Cornell University.2
“Therefore, it is important to site the mining farm strategically to maximize productivity.”
The study identified Texas as the state with the most potential for setting up profitable crypto mining operations, with 32 planned renewable projects capable of generating combined profits of $47 million.
The researchers believe that their findings could have a significant impact on the future of cryptocurrency mining and renewable energy development.
The states of California, Colorado, Illinois, Iowa, Nevada, and Virginia exhibit potential, although the establishment of mining rigs involves a substantial initial cost. Apoorv Lal, a Cornell doctoral student, proposed one approach to incentivize such projects.
He suggested the introduction of new policies that offer economic rewards for mining bitcoin and other cryptocurrencies using clean energy.
According to Mr. Lal the rewards could act as an incentive for miners to adopt clean energy sources, which can lead to combined positive effects on climate change mitigation, improved renewable power capacity, and additional profits during pre-commercial operation of wind and solar farms.
Additionally, he recommended policies that motivate cryptocurrency-mining operations to reinvest some of their profits into infrastructure development, fostering a self-sustaining cycle for renewable energy expansion.
Bitcoin’s environmental impact, criticized by environmentalists due to the extensive electricity needed to support its network and create new cryptocurrency units, has prompted suggestions for more sustainable practices. Recent analysis from the University of Cambridge estimated that Bitcoin’s energy consumption is roughly equivalent to that of Poland.
- Independent.co.uk : https://www.independent.co.uk/tech/bitcoin-mining-solar-wind-renewable-energy-b2454666.html[↩]
- finance.yahoo: https://finance.yahoo.com/news/bitcoin-mining-could-supercharge-transition-123839558.html[↩]
