The great desire for bitcoin mining to run on clean energy has taken an unexpected turn. While many people still demand this for the future, it looks like renewable energy is not as common as it once was. In fact, the Nordic region – which includes countries like Iceland and Norway – has become a staple area for this kind of energy, and yet it appears to be running dry.
Bitcoin Mining Needs Clean Energy, but Supplies Seem Limited
For the past few months, as bitcoin has jumped into larger territory and reached a new all-time high, the argument surrounding the necessity for clean energy so that it can continue to be mined has expanded along with its price. The idea is that if bitcoin’s price rises, the harder and more expensive it is to mine. Thus, many environmentalists have been bashing the idea of further bitcoin mining given that it now takes a lot of energy to extract new units of the world’s number one digital currency by market cap, and this allegedly presents hazards to our planet.
In addition, it is stated that much of the world’s bitcoin mining occurs in China, which is not an energy-conscious country. The region is widely reliant on coal and fossil fuels and is a heavy contributor to the Earth’s present pollution levels. Men like Kevin O’Leary – aka Mr. Wonderful on the television program “Shark Tank” – has likened bitcoin mined in China to “blood money,” and he says that he will not be purchasing any bitcoin mined within the nation’s borders.
These are all positive steps, but if the world’s primary clean energy hotspots are suddenly running low on supplies, this is going to present a serious problem for bitcoin miners. In a statement, Hordur Arnarson – chief executive officer at Landsvirkjun, a national utility firm in Iceland – claimed:
There could be very little excess energy in 2021 and 2022. Because of the climate issues, we see a lot of very interesting segments that are growing rapidly, and several of them need electricity.
Thus, with so many other industries and enterprises requiring clean energy, bitcoin mining could potentially be left in the dust.
The Increase in Demand Has Grown
Over the past few years, bitcoin mining has grown into one of the biggest digital industries the world has ever seen. It is stated that bitcoin mining now needs more energy than countries such as Iceland and Argentina and leaves as big a carbon footprint as the city of Las Vegas, Nevada.
However, new reports suggest an even more dismal future given that bitcoin mining – according to one document – now requires approximately 66 percent more energy than it needed six years ago in 2015. A separate report issued by Citibank has also stated that the industry is likely to face strong regulation in the coming years as a result.