Foundry Digital’s CEO, Mike Colyer believes, “At some point Bitcoin mining will look like a utility, and it’s going to be a part of critical infrastructure for countries.” He also believes that crypto mining is going to become a critical pathway to 100% renewable energy production.
Part of this is due to the need to find a more sustainable means for carrying out crypto mining practices. As more energy companies see that mining cryptocurrencies has economic benefits, it could lead to more restructuring of how the power grid operates – giving energy companies an incentive to invest in crypto mining renewable energy sources.
Such restructuring would be necessary both in terms of how energy grids operate and in terms of how individuals invest in them. The prediction is that it would lead to 100% renewable energy source investment, especially given how important having stability is for running crypto mining operations.
There are already movements in the United States that would support such a bridge for crypto mining to pursue renewable energy sources. According to Colyer, there are lawmakers in Kentucky looking to provide tax incentives for cryptocurrency miners and a New York company operates a power plant that only runs to meet high demand.
Such a transition will take 10 to 20 years to implement, especially in countries like China, where 75% of Bitcoin mining was happening until the ban went into effect a month ago. Some predicted that unless there was a serious commitment to change, the energy resources and emissions involved in crypto mining would undermine the country’s emissions reductions goals.
Companies are investing heavily in North American miners – Digital Currency Group, for example, has invested over $255 million. There isn’t a reason that such companies couldn’t invest in renewable energy sources to clean up crypto mining. Renewable energy will become even more important going forward as cryptocurrencies continue to increase in popularity and demand for mining increases.
With such a heavy appeal – and so much money involved in the crypto markets – it is very likely that given the right combination of clean technologies and tax incentives that crypto mining could drive a complete transition to renewable energies with forward thinking companies such as EcoChain leading the way by committing to mining only from green energy sources. Not only would this benefit those participating in crypto mining, but it would benefit the planet as emissions would be reduced and there would be a greater emphasis on the importance of green companies producing more efficient products and technologies to make crypto mining much more energy efficient.