Green energy powers most of Bitcoin mining and the world might as well face it. And the rest of the cryptocurrencies that use Proof-Of-Work might be right behind, because they follow the same incentives. In their quest for cheaper energy sources, they all reach the same conclusion. Humanity is wasting renewable energy all over the world. And wasted energy is the cheapest of them all.
In today’s story, a hydropower plant that had to pause operations for nine months found cryptocurrency mining and got the dream client they needed. Reuters gives us the prelude to the story:
“The plant was forced to reinvent itself after 30 years because the government stopped buying electricity during the pandemic due to surplus power supply in the Central American country, where the state has a monopoly on energy distribution.”
How much green energy does a country has to have to just stop buying from a clean hydro plant? Well, according to hydropower.org:
“At the end of 2016, Costa Rica reached a total installed hydropower capacity of 2.12 GW. The country dominated the headlines for the second consecutive year, achieving 100 per cent renewable electricity production for a total of 271 days.”
How Did Crypto Mining Enter The Hydro Plant’s Picture?
Every talking head and their grandmas spread ESG FUD through traditional media. And that spills into social media, where everybody is oh-so-sure that crypto mining is boiling the oceans. Because of that, Eduardo Kooper, the owner of the plant, doubted going the crypto mining route. However, they just had to pivot. They tried other ventures, like making frozen food, and none of them work. There was no other choice.
“I was very skeptical at first, but we saw that this business consumes a lot of energy and we have a surplus.”
The hydroelectric company, with its three plants valued at $13.5 million and a three Megawatt capacity, invested $500,000 to venture into hosting digital mining computers.”
Why would miners move their operation to a hydro plant, though? Wouldn’t it be more comfortable doing it at home? They are heavily incentivized to look for the cheapest energy possible, that’s why. And green energy is renewable. Coal is not. The Reuters report quotes one of the hydropower plant’s satisfied customers:
“Installing it in this place is much more profitable than at home,” at almost half the cost, he calculated, after connecting his computer to the network at the river-powered plant.”
Business is business.
BTC price chart for 01/12/2022 on OkCoin | Source: BTC/USD on TradingView.com
Green Energy And Crypto Mining, A Match Made In Heaven
We at NewsBTC have been telling you this. Bitcoin mining incentivizes the creation of green energy infrastructure. And it can finance green energy plants already in place. Mining provides both a buyer of first resort and a buyer of last resort. Three months ago, we wrote:
“A whitepaper by the Bitcoin Clean Energy Initiative from earlier this year had explained how bitcoin mining, when using renewable energy, “is especially suited to accelerate the energy transition” towards a cleaner electricity grid.”
And two months ago, in an article on how Bitcoin mining is helping the Navajo Nation in more ways than one, we told you:
“As the world is trying to phase out coal-powered energy, the Navajo innovate to keep up with the times. According to Walter Hasse, Navajo Tribal Utility Authority president, “I had excess electricity that I still had to pay for and deal with. Now, I want to build renewable energy to replace my lost coal resources that are throughout the nation. I need someone to consume that renewable energy resource.”
And with Bitcoin mining, they have that buyer. And now, the other PoW cryptocurrencies can follow Bitcoin’s example. In Costa Rica, the other side of the world, a power station manager reaches the same conclusion as the Navajo Tribal Utility Authority president. Quoting Reuters again:
“Kooper said international cryptocurrency miners are looking for clean, cheap energy and a stable internet connection, which Costa Rica has plenty of. However, he said Costa Rica’s government should be more aggressive about trying to attract more crypto mining business, although he gave no specifics.”
The Green Energy Future We Deserve
Proof-Of-Work mining is a net positive for the planet. It will lead us to the green energy future that humanity’s dreaming of. It’s the only industry that can do so. And the revolution is already well underway.
Featured Image: Screenshot from Reuters' video report | Charts by TradingView