By now the cryptocurrency Bitcoin is a household name. Next to people's interest in it as a way to strike their fortune, many are talking about how Bitcoin is actually ruining the planet. Why? Bitcoin uses a lot of energy, and as Bitcoin becomes higher in demand, more energy is needed to mine the coins.

This way of thinking doesn’t take into account the full picture though-- Bitcoin actually has the power to save our earth.

How much energy does Bitcoin mining consume?

Unlike other digital payment methods, Bitcoin requires a lot of energy to acquire Bitcoins in the first place: the coins themselves must be mined. We should also remind ourselves that Bitcoin is not a payment system, but a new form of currency, which thus requires new methods to make buyers and sellers feel secure as it’s not yet a trusted currency like the US Dollar.

Next to this, the high cost associated with this mining process means that Bitcoin transactions become more secure-- “Bitcoin consumes energy primarily to ensure the scarcity of Bitcoins and finality of transactions without a trusted third party.”

Bitcoin Prioritizes Sustainable Energy Sources

Ironically, due to Bitcoin being so expensive to mine, sellers actively seek out more sustainable energy sources, to keep costs low. Where there’s money there’s innovation, and Bitcoin is pushing for renewable energy sources. Although driven by the prospect of earning more money, one of the side effects is the prioritization of more sustainable energy sources.

Next to this, Bitcoin is not location dependent in terms of its energy sources. This means it can source energy from “stranded” locations far from populations, like in the desert or oceans. As such, the Bitcoin industry can provide the much needed financial investment to further develop these stranded energy sources.

The future of money and How Bitcoin Will Actually Save Our Earth

Given the sector’s motivation to source cheaper energy sources, a whole new world of renewable, stranded and trapped energy sources becomes available. Especially in locations previously sidelined like Iceland, where it happens almost 100% of its energy is renewable.

The country’s very low temperatures also greatly appeals to Bitcoin data centers, as 30-40% of their electricity costs are typically spent on cooling. This means Bitcoin also has the power to create massive economic benefits for these places, which are also sustainable. Talk about a win-win.

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Talk to us: Do you agree that Bitcoin could help save the earth? Let us know in the comments below, we would love to hear from you!

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