The environmental agenda in cryptocurrency mining is gaining more and more space. Canadian companies Neptune Digital Assets, specializing in blockchain technology, and Link Global Technologies, focused on the extraction of digital currencies, have come together to create a facility that will mine bitcoin (BTC) using only sustainable energy. The initiative comes to demonstrate that the activity does not necessarily need to cause damage to the environment.
Sustainable alternative could be bitcoin’s future
Faced with this problem, the two companies announced on Friday (19) that they will build a bitcoin mining facility completely powered by clean energy in the Alberta region of Canada.
The definitive agreement has not yet been signed, but Neptune Digital Assets and Link Global Technologies hope to start the project in April, immediately starting construction of the plant. From what has been revealed, each company will receive 50% of the bitcoin extraction and will also share operating costs and expenses equally.
Link Global Technologies already has other smaller facilities in the Alberta region. Among them, most mine the cryptocurrency with solar, wind or natural gas. “We hope that there will be substantial global pressure to develop sustainable bitcoin mining operations around the world,” said Cale Moodie, CEO of Neptune.
This initiative is important for the cryptocurrency market and for critics of the digital and decentralized financial system. Bitcoin has recently reached a new historic high, surpassing $ 61,000. As a result, important public figures and international regulatory bodies have raised concerns about the energy consumption of digital currency.
The environmental impact of bitcoin mining
One of the main criticisms of bitcoin and its decentralized system is the huge consumption of electricity to sustain it. Its blockchain network permanently records and encrypts all transactions involving the cryptocurrency. This requires that countless machines around the world carry out numerous processes to create a public and secure ledger that guarantees the integrity of the digital currency.
Those who provide this processing power are rewarded with fees charged for each transaction and the creation of new bitcoin units. To optimize their earnings, individuals and institutions that dedicate themselves to mining as a real source of income settle in places where energy is cheap.
According to data from the Cambridge Bitcoin Electricity Consumption Index (CBECI), China is responsible for 65% of all bitcoin extraction rate in the world. It turns out that the vast majority of power plants in the country are powered by coal and other fossil fuels. Therefore, bitcoin mining directly implies a high consumption of polluting energy.
Bill Gates criticizes mining electricity consumption
Even Microsoft founder Bill Gates has been criticizing bitcoin. In his most recent speech on the subject, he stated that cryptocurrency spends more energy per transaction than “any other method known to mankind”.
According to Gates, the constant valuations in the price of crypto also encourage the growth of mining activity. As a consequence, bitcoin would be responsible for the worsening global warming.
However, even though historically a critic of cryptocurrency, Gates raised the possibility of supporting bitcoin in the future, if these environmental problems were resolved. “If it is clean energy and it is not hindering other uses, eventually, maybe everything is fine,” he said.
With information: CoinDesk