The proof-of-work cryptocurrencies like Bitcoin require a mining process that takes up a lot of energy-generating resources. The miners have been guilty of looking for cheap electricity resources to power their mining farms and generate hefty profits. However, this year the backlash from the environmental conservation organizations and government has persuaded these miners to change their ways.
Both individual and commercial miners have started to invest in renewable energy resources for powering their plants and computers. Many of these miners have turned to renewable and sustainable energy generation sources like solar, wind, or hydroelectric power. The good news is that the price of green energy generation is lower while Bitcoin prices are rising that has made the transition possible.
Paolo Natali is the head and principal at the Rocky Mountain Institute for the Climate Intelligence Program. Speaking on the matter of high carbon emissions, he told The Wall Street Journal that the Bitcoin miners had been marked as greedy for ignoring the need for carbon emissions control over profit generation. He further added that the entire cryptocurrency mining industry is faced with being at odds with environment conservation.
He further explained that despite the backlash, the majority of the crypto mining companies depend on the energy resources like coal and fossil fuels. While these carbon-based fuels are a great source of generating a lot of energy and are cheaper sources, they are still the cause of generating a lot of carbon emissions. He said that such a scenario called for the setup of the Crypto Climate Accord, which assists and educates these mining organizations to reduce their carbon footprint.
New Bill will Bar all Crypto Mining Companies from Using Fossil Fuels
Fossil fuels are a limited and scarce source of energy that is not a very great fit for the environment. The lawmakers in New York City have been pondering on chartering a bill that will bar the crypto mining organizations from using fossil fuels under any circumstances. This bill will also require the miners to document their carbon emission readings.
The same proceedings are also an agenda under debate at the Securities and Exchange Commission. As per Natali, thus far, 180 mining companies have joined the Crypto Climate Accord voluntarily. However, a study from Cambridge University’s Center for Alternative Finance reveals that less than 40% of the energy used by 280 mining organizations comes from renewable sources.