Cryptomining has faced criticism from climate activists for the vast amounts of electricity requires
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Tesla to power bitcoin mine with solar energy panels and Megapack batteries are being deployed in Texas in order to mine bitcoin with 100 per cent renewable energy.
Bitcoin mining – the process by which new units of the cryptocurrency are generated – has faced criticism in recent years for the vast amounts of electricity it requires. The electric car maker partnered with payments firm Block and blockchain firm Block stream to build a 3.8 megawatt (MW) facility that will begin operations later this year.
“This is a step to proving our thesis that bitcoin mining can fund zero-emission power infrastructure and build economic growth in the future,” said Adam Back, CEO of Block stream.
Cryptocurrency advocates believe the financial rewards from bitcoin mining could actually incentivize the construction of more renewable energy plants.
In the case of solar and wind facilities, there are often times when a surplus of energy is being generated, which could potentially be used to mine cryptocurrency.
“Bitcoin’s climate change issue will become more prominent as price scales, so we will have no choice but to come up with solution,” Marcus Stergiou, an analyst at the UK digital asset broker Global Block, told The Independent.
A more feasible option is to transition to sustainable energy sources like solar, wind and hydro. The cost of renewable energy compared to fossil fuel-powered generation is the main factor preventing this switch, as crypto mining operations require the lowest possible energy price in order to maximize profits.