While innovations in chipset manufacturing have helped reduce operational costs related to Bitcoin mining, a report from Arcane reveals the market’s potential to transform the energy industry.
The flexibility behind running Bitcoin (BTC) mining operations can be vital to solving the real-world problems that stand in the way of the energy industry, suggests Arcane research.
One of the biggest concerns authorities raise when it comes to Bitcoin’s mainstream adoption is its energy requirements. While innovations in chipset manufacturing have helped reduce operational costs related to Bitcoin mining, a report from Arcane reveals the market’s potential to transform the energy industry.
Owing to low cost of reacting, Bitcoin mining complements the growth of wind and solar grids, which often produce unstable and non-controllable energy. Arcane research points out that the Electric Reliability Council of Texas, to date, has only allowed bitcoin miners to participate in the most advanced demand response programs.
In addition to being flexible to grid demands, Bitcoin mining can also help solve issues related to gas flaring — the process of burning natural gas associated with oil extraction.
Arcane highlights that by leveraging the agnosticism, modularity and portability of Bitcoin rigs, miners can setup operations next to oil wells, reasoning that “Per $1,000 investment, a bitcoin mining system reduces emissions of 6.32 tons of CO2 equivalents per year, compared to 1.3 for wind and 0.98 for solar.”
Bitcoin mining can further help the energy industry by repurposing its byproduct — heat — to heat up homes, industries and other applications during the coming winter. It is important to note that heating accounts for roughly 40% of the world’s CO2 emissions.
Repurposing heat from Bitcoin mining offers various advantages, including operational subsidies and lower heating costs.
Related: US lawmakers appeal directly to 4 mining firms, requesting info on energy consumption
The importance of the above research comes at a time when the eurozone hit record inflation of 9.1% amid gas and energy crisis.
As Cointelegraph reported, energy prices made up the largest price push, up by an annual rate of 38.3% over the past month.