BT Daily News: The Undeniable Benefits of Bitcoin Mining In The U.S. and more
1. The Undeniable Benefits of Bitcoin Mining In The U.S.
The global economy is unquestionably moving towards a digital ecosystem where everything from different investing strategies to money transfers is done digitally. This invites the idea of fresh digital innovations that get continually developed.Bitcoin being one of the technological advancements, allows the transfer of value anywhere without using a third party. This makes it one of the most exciting developments in digital payment systems.
It is produced through “mining,” in which advanced computers solve difficult math problems to confirm the transaction’s authenticity. In exchange, miners get paid in Bitcoin for finishing “blocks” containing authenticated transactions.
What Is The Use Of Bitcoin Mining?
The main purpose of bitcoin mining is to create a global digital network for peer-to-peer exchanges and asset storage without banks and middlemen. Moreover, it is one of the greenest sectors in the world.
According to the Cambridge Center for Alternative Finance, global Bitcoin mining consumes less than 0.2% of the energy produced on earth, less than all of the country’s refrigerators combined, and far less than data centers and networks.
In other words, it consumes relatively less energy overall. The Chamber of Digital Commerce statistics show that some 60% of the energy consumed comes from renewable sources. Notably, bitcoin mining contributes to developing a market for sporadic energy sources like solar and wind at off-peak times.
Furthermore, unlike other data centers, mining operations may immediately shut down during high-demand situations like severe weather to maintain grid stability and avoid the need for peaker plants powered by fossil fuels.
Economic And National Benefits
The nation can access the newest operational procedures, technologies, and finance methods by allowing Bitcoin mining companies to operate there. The diffusion of improved technology into the local economy happens over time due to their introduction.
For instance, constructing Bitcoin mining operations in rural locations may inspire natives to willingly explore, accept, and incorporate new developments into their daily lives.
Bitcoin miners can also assist in developing existing infrastructures in rural areas. A striking example is the partnership between Cleanspark and a utility company to invest in new transmission lines, which benefits both parties and everyone who lives along the enhanced lines.
While bitcoin mining may not provide as many jobs as other industries, it may nonetheless enable people with various abilities to find employment.
Is It Environment-Friendly?
Various bitcoin mining companies are undertaking various activities to hasten the transition to a sustainable blockchain industry. They are supporting the Crypto Climate Accord (CCA), a private organization that works to decarbonize the bitcoin industry, more frequently now. As a result of the CCA, Bitcoin mining companies are progressively implementing energy-saving procedures, utilizing renewable energy sources (wind, solar, and hydroelectricity), and purchasing carbon credits to offset their carbon emissions.
Bitfarms, one of the key participants in this endeavor, operates five industrial-scale mining facilities in Quebec that are entirely powered by hydroelectricity.
Certain cryptocurrencies require more energy and specialized equipment to operate.
However, it’s essential to consider the environmental costs of gathering natural resources and using energy to create and maintain fiat currency and the existing banking system.
2. Why keeping Bitcoin mining in the U.S. helps the economy and national security—and even the environment
Bitcoin mining exists primarily to build a global digital network for storing value without the need for a bank or other intermediary, and for peer-to-peer exchanges. It’s also one of the most environmentally friendly industries in the world.The Cambridge Center for Alternative Finance estimates that global Bitcoin mining uses less than 0.2% of the world’s energy production—roughly comparable to all refrigerators in the U.S. and far less than data centers and data networks generally.
In other words, it uses a very small amount of energy in the grand scheme of things—and nearly 60% of what it does use comes from renewable sources, according to data published by the Chamber of Digital Commerce. Bitcoin mining also helps create a marketplace for intermittent sources such as solar and wind during their off-peak hours.
Furthermore, unlike other data centers, mining facilities can shut down at a moment’s notice during high-demand events such as extreme weather to provide grid stability and prevent the use of fossil-fuel powered peaker plants.
Yet the current administration, fringe politicians, and environmental groups are singling out Bitcoin mining by attempting to limit access to energy and imposing or proposing taxes so high the industry will have ever reason to leave the U.S. entirely. And that’s assuming they don’t try to ban it altogether.
These critics are now citing “marginal emissions” data, which is merely cherry-picking businesses they don’t like for political reasons, and saying that those businesses use too much energy. To be clear, Bitcoin mining does not emit anything—it requires computers, which use electricity just like any other data center.
To say these policy proposals and their tortured justifications are misguided would be the kindest possible reading. Their effects would be devastating to the environment, the economy, and U.S. national security.
Relative to other leading Bitcoin mining jurisdictions, the U.S. has an extremely clean energy grid. Texas is a leader in Bitcoin mining and the home of Riot Platforms’ operations, the largest Bitcoin mine in North America. According to the American Clean Power Association, Texas led the nation in renewable energy capacity added in 2021—close to three times that of second-place California.
Pushing Bitcoin mining offshore, under the guise of environmentalism, would only mean the U.S. will capture less of Bitcoin’s value, and more mining will happen connected to dirtier energy grids in more hostile parts of the world. For example, Russia is infamous for not only fossil fuel production and its use of energy for political brinksmanship, it’s among world leaders in leaking methane into the atmosphere. It’s already among the top five Bitcoin mining jurisdictions and seeking more market share. Weakening the American Bitcoin mining industry would be an enormous gift to Russia—and increase global carbon emissions.
That leads to the national security issue. As noted in a recent Justice Department report on cryptocurrencies, America has strong anti-money laundering rules and ensures that as people move Bitcoin value from the network in and out of traditional accounts, it is traceable—nefarious actors can be caught, unlike in other parts of the world. Russia, for example, is a world leader in ransomware attacks and the abuse of cryptocurrency, as well as traditional financial intermediaries. Keeping Bitcoin mining in America means that more value will be captured by highly regulated U.S. companies and law-abiding individuals simply interested in optionality when it comes to storing and transferring value.
Bitcoin mining has created thousands of jobs. Riot alone employs approximately 500 people, many in Rockdale, Texas, a community previously suffering from the closure of a large industrial aluminum-smelting plant. Riot is now helping to support a program with the Texas State Technical college to upskill the local workforce with programs in computer repair and programming.
Bitcoin mining is a bourgeoning industry that’s good for the environment, the economy, and national security. Attacks from nefarious political forces should be rejected to maintain America’s leadership role in the digital economy.
Jason Les is the CEO of Riot Platforms, Inc., the largest publicly traded Bitcoin mining enterprise in North America by market cap. Brian Morgenstern is Riot’s head of public policy and was a senior adviser and deputy assistant secretary of the Treasury from 2017 to 2020. The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
3. Bitcoin Hashrate Hits 400 EH/s As Miners Profit From Bull Market
Bitcoin’s hashrate has continued its recent climb, riding to dramatic new highs. The leading digital asset by market cap has experienced a major bull run, bringing about positive sentiment. This has led to more miners plugging into the Bitcoin network, and a new all-time high of 400 EH/s in the past 48 hours.Bitcoin Hash Rate Touches New High
The Bitcoin hashrate has been consistently increasing since the beginning of the year. Earlier in the week, the network added 40 EH/s hashrate reaching a peak of 350 EH/s. However, hours after the mining difficulty was adjusted on March 23, the hashrate spiked to astronomical levels. Between March 23rd and March 24th, the bitcoin hashrate recorded a new high of 400 EH/s, according to data from Mempool.
This development indicates two things: the network’s security has increased, and miners are confident in the profitability of Bitcoin long-term. Miners who have been an integral part of the network since its inception have continued to increase their support for the leading coin due to the recent rally.
In addition, bitcoin mining difficulty has reached a record high and now stands at 46.84T. This represents a 7.5% increase from its previous levels, which correlates to the progressive increase in hashrate during this period.
Why Is Hash Rate Rising?
The rise in hashrate difficulty is largely due to the rise in the price of BTC, which has attracted miners to the Bitcoin network. BTC has experienced an increase of more than 50% in 2023 hitting a peak of $28,000 earlier in the week.
This price spike has encouraged miners to connect their mining equipment to the network. It should be noted that several miners left the Bitcoin network following the extended bearish market in 2022.
With the market recovery, mining profitability has increased, although it is still far from the ideal mark. Nevertheless, it suggests that the miners are getting back to making gains from the network. One of the major indicators of this is the 20% increase in hash price in the past week.
Hash price is a measure that indicates the average price a mining equipment makes on the bitcoin network daily. Currently, the hash price is about $0.077/TH/day, according to data from hashrateindex. This could drop in the coming days as higher mining difficulty means stiffer competition for mining rewards on the Bitcoin network.
With more power coming from the computing machines of miners, the hash rate has continued to climb. It is, in turn, helping to strengthen the bitcoin network, an all-around win for the asset.
Bitcoin Price
At the time of writing, Bitcoin has experienced a market correction and is trading T $27,455. The current market perception is that we’re in a bullish market, and Bitcoin could be on its way to $30,000 in the coming weeks.