Bitcoin has the potential to become a catalyst for the global energy transition and reduce harmful emissions, according to a study by experts from the Institute of Risk Management.
Dylan Campbell and Alexander Larsen published a paper entitled “Bitcoin and the Energy Transition: From Risk to Opportunity.”
The authors argue that although the first cryptocurrency is perceived as a risk due to its high electricity consumption, it could lead to new solutions to global problems in this area.
The researchers emphasized the important role of energy in the development of civilization and the need for reliable, clean and more affordable energy sources.
Despite criticism of Bitcoin’s energy intensity, Campbell and Larsen presented a balanced view, showing the potential benefits of mining.
In their opinion, the mining of the first cryptocurrency opens up at least seven opportunities for improving the energy industry.
The cryptocurrency mining industry could reduce global methane emissions by 2030 torches by 8% due to the conversion of greenhouse gases into less harmful substances during industrial combustion, experts believe.
Campbell and Larsen noted other potential benefits of mining to the industry:
- increasing the efficiency of energy network management, thanks to the decentralization of cryptocurrency miners and their ability to quickly respond to loading;
- accelerating the introduction of wind and solar generation – miners can balance consumption;
- improving the economics of nuclear and hydroelectric power plants by purchasing excess electricity;
- recovery of generated heat.
“We showed that although Bitcoin is a consumer of electricity, this does not mean that it is a large source of carbon dioxide emissions and other air pollutants. “Cryptocurrency can be a catalyst for a cleaner, more energy-secure future for everyone,” the researchers said.
As a reminder, Bitcoin mining produces 0.1% of global CO₂ emissions, according to the Cambridge Center for Alternative Finance.
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