One of the most important problems in the world is global warming and the climate change it causes. Natural events such as unexpected storms, floods and extreme heat are the result of the effects of global warming. Burning fossil fuels to obtain energy and carbon dioxide and methane gases released into nature are one of the biggest causes of global warming. Bitcoin mining was also criticized for its use of electricity, but research has revealed that Bitcoin can slow down global warming.
Bitcoin (BTC) has radically changed the financial world since its launch. This digital currency, which has reached a size of 520 billion dollars, is mined through a method called mining. While the Bitcoin reward is earned from the blockchain at the end of the mining, the hardware used for mining also consumes some energy. However, in recent years, mining companies have been trying new ways to reduce their carbon footprint. As a result, Bitcoin began to be referred to as sustainable and environmentally friendly.
Bitcoin mining and methane
A recently published report by the consultancy company KPMG confirms this situation. According to the report, Bitcoin is an important financial instrument for stabilizing electricity grids and encouraging investment in renewable energy sources. In addition, it is possible to make money from idle energy with digital money and slow down global warming by reducing methane emissions to zero.
Methane gas is an important factor of climate change. According to the KPMG report, methane is a gas 80 times more powerful than carbon dioxide and is responsible for approximately 30 percent of global warming. Additionally, landfills act like methane factories, emitting toxic gas into the air during the garbage decomposition process.
Bitcoin appears as a solution to this issue. Companies are finding ways to capture methane coming out of dumps’ smokestacks and then convert that methane into electricity. There are companies that produce electricity this way. They then use this electricity to mine Bitcoin. This application both reduces carbon emissions and takes toxic fumes and turns them into digital money. If the process can be scaled, landfills could become Bitcoin mining hubs.
Could reduce global emissions by up to 8 percent
Some companies follow a similar model by converting flammable gases such as butane and hydrogen into electricity and mining Bitcoin. In this process, gases that would otherwise be wasted are utilized. According to Harvard Business Review, the potential energy of combustible gases in the US and Canada could power the entire Bitcoin blockchain. In addition, it prevents these harmful gases from spreading into nature. Moreover, according to a report published by the Institute of Risk Management (IRM), Bitcoin mining, which is done with electricity produced from gases released into the air, has the potential to reduce global emissions by up to 8 percent.
Moreover, experts say that Bitcoin mining, which is made from these harmful gases that mix with nature, is more beneficial to the environment than even solar energy. Daniel Batten, co-founder of environmental investment fund CH4 Capital, is one of these experts. Even so-called green energies have a certain amount of carbon footprint when they are first invented. By developing these energies over time, the carbon footprint is reduced to zero. For example, the carbon footprint of solar energy only became environmentally friendly in the 1990s, 40 years after it was first invented. Batten argues that Bitcoin mining with gases such as methane will become harmless to the environment in a much shorter time than solar energy.
Sources: Forbes, Cointelegraph