A new working paper by Bitcoin advocates and the former head of the Electric Reliability Council of Texas (ERCOT) identifies Bitcoin mining as a key tool for clean energy and balancing the grid.
In a new academic paper called “Leveraging Bitcoin Miners as Flexible Load Resources for Power System Stability and Efficiency” the authors suggest that cryptocurrency can aid in the integration of renewable energy.
The authors provide a compelling case that demonstrates how Bitcoin miners have been instrumental in demanding response programs, offering unique capabilities as flexible and controllable loads.
This research challenges the narrative often presented by critics of cryptocurrency, who argue that Bitcoin mining exacerbates energy consumption issues.
Notably, in October 2022, US Senator Elizabeth Warren along with six other Democratic colleagues requested detailed information from ERCOT on the electricity consumption of Bitcoin mining operations.
Previously, she criticized the New York-based mining company Greenidge Generation for performing environmentally harmful mining, adding that cryptocurrencies are not doing enough to combat the climate crisis.
Bitcoin mining pioneer Marshall Long tagged Warren in a retweet of the paper, adding, “the people who RUN the grids say you’re wrong.”
However, the latest paper argues that Bitcoin miners could play a crucial role in what is known as “demand response,” by enhancing both the technical and economic stability of the grid.
This assertion is supported by emerging data including a study from Cornell University that indicates that wind and solar projects could benefit from Bitcoin mining during their development phases.
Hydro-cooling farms and the utilization of associated petroleum gas have contributed to making Bitcoin mining more environmentally friendly.
Furthermore, reports from September indicate that over 50% of Bitcoin’s energy usage is now derived from clean energy sources.
Bitcoin miners see record-high revenue
The recent surge in cryptocurrency prices has led to higher earnings for crypto miners, who have seen their average daily revenue grow to around $32 million over the past month.
The hashrate, a key indicator of the computational power used in mining crypto, has reached record levels, suggesting the use of more powerful computers by BTC miners.
Data from the mining analytics platform Hashrate Index reveals an increase in miners’ earnings. Specifically, the revenue generated from employing one petahash per second of computing power for a day has escalated from $70 at the beginning of November to over $81.
Meanwhile, the expectation of approval for a spot ETF has contributed to a significant rise in Bitcoin’s price over the past few weeks.
The leading cryptocurrency rallied towards $38,000 late yesterday, driven by market speculation surrounding the potential approval of a spot ETF.