According to Arcane research, the flexibility of bitcoin (BTC) mining operations could be vital to addressing the challenges facing the energy industry.
One of the biggest issues authorities raise when talking about the mass adoption of bitcoin is considered to be its energy needs. If innovations in chip manufacturing have helped reduce the operating costs associated with bitcoin mining, then a transformation is possible in the energy industry, according to the report.
Because of the low cost of response, bitcoin mining complements the development of wind and solar grids, which often produce unstable and uncontrollable energy.
Arcane’s research shows that to date, the Texas Electric Reliability Council has allowed bitcoin miners to participate in the most advanced demand response programs.
In addition to flexibility with respect to grid requirements, BTC mining can also help solve the problems associated with natural gas flaring from oil production.
Arcane experts emphasize that by using the modularity and mobility of bitcoin rigs, miners can conduct operations near oil wells.
It is believed that “at an investment of $1,000, a bitcoin mining system reduces emissions by 6.32 tons of CO2 equivalent per year, compared to 1.3 tons of CO2 equivalent per year provided by wind power and 0.98 for solar.”
Bitcoin mining can also contribute more to the energy industry by repurposing its byproduct heat to heat homes, businesses and other buildings during the cold season. It is important to note that heating accounts for about 40% of the world’s CO2 emissions.
Using the heat from bitcoin mining suggests various benefits, including operating subsidies and lower heating costs.
The importance of the aforementioned study is particularly relevant because the eurozone has reached a record inflation rate of 9.1% amid a gas and energy crisis.
In Europe, energy prices caused the biggest jump in prices, rising 38.3 percent year-over-year in the last month.