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- Texas, the global hub of Bitcoin mining, had the highest profit potential.
- The added revenue could be used to invest in renewable energy installations.
Over the years, Bitcoin [BTC] mining has earned a lot of flak from environmentalists and crypto naysayers, who accuse it of being one of the most power-guzzling industries and thus a major emitter of greenhouse gases.
This raging debate has affected Bitcoin’s brand image and restricted its mainstream adoption.
But what if you’re told that Bitcoin mining is the fire brigade and not the arsonist? That the mining process might be a strong catalyst for the expansion of renewable energy sources?
Sounds implausible? Not really.
Bitcoin mining to mitigate climate change?
A study conducted by scientists from Cornell University in the U.S. revealed huge profit potential for upcoming renewable energy projects in the country through Bitcoin mining.
The added revenue could then be used to invest in future renewable energy installations, the researchers claimed.
The study showed that Texas, the global hub of Bitcoin mining, had the highest profit potential. Meanwhile, projects in California were ranked second in terms of profitability.
Notably, the upcoming wind and solar projects in Texas could generate combined profits to the tune of $47 million by mining Bitcoins.
All in all, most installations around the U.S. had decent profit potential, according to the analysis.
Win-win situation
The arrangement seemed like a symbiotic relationship between Bitcoin mining companies and renewable energy projects. Let’s explore more about what it means.
The production of renewable energy depends on climatic factors. On windy and sunny days, excess energy is produced that the grid is unable to handle.
However, miners can use the extra energy to power their devices and generate new Bitcoins. This is due to the mining process’s need for a steady, uninterrupted energy source.
This approach not only stabilizes the grid but also ensures that renewable energy projects are more profitable.
Bitcoin miners, on the other hand, gain access to energy sources at a far lower cost, significantly enhancing their margins. In the long run, such an arrangement could help miners navigate the depths of a bear market.
AMBCrypto noted a sharp dip in miners’ revenue since the end of the last bull market, using Glassnode’s data.
Source: Glassnode
Is your portfolio green? Check out the BTC Profit Calculator
The Cornwell study also suggested policy recommendations to incentivize such projects. One was giving economic rewards to mining companies who used eco-friendly energy sources.
Furthermore, policies for channeling income from these enterprises to finance future renewable projects were also proposed.
