Twitter’s CEO Jack Dorsey says bitcoin will incentivize renewable energy? What BigONE thinks
Twitter CEO Jack Dorsey claimed in a tweet on Wednesday, April 21, 2021, that “bitcoin incentivizes renewable energy.” He sent this tweet shortly after Square, Jack Dorsey’s payment company, released a whitepaper. The document acknowledges that bitcoin mining consumes a significant amount of energy but argues that this is a positive for renewable energy adoption. Although renewable energy sources such as solar and wind create excessive energy when demand is low, they fall short when demand is high. BigONE would like to discuss its own view on the claim with our users.
Does Bitcoin Incentivize Renewable Energy?
BigONE believes that using renewable energy sources like solar and hydropower to generate electricity for bitcoin mining is the most cost-effective option. We believe that in a lucrative industry like bitcoin mining, where electricity is the most expensive component, less expensive methods of generating electricity will be embraced.
BigONE would like to remind its users that cryptocurrency mining consumes 121.36 terawatt-hours (TWh) per year, which is more energy than Nigeria, Africa’s most populous country, consumes in a year, according to a Cambridge University study. BigONE would like to point out a distinction between energy consumption and carbon emissions. That electricity consumption that allows for large carbon emissions is a concern and a threat to the environment. Renewable energy sources emit little to no carbon, making them an excellent choice for bitcoin mining. BigONE believes that if bitcoin mining continues to rely on fossil fuels, it will consume more energy and emit more carbon emissions. According to Square’s whitepaper, renewable energy sources provide too much energy when the demand is low but too little when the demand is high. For example, a wind turbine creates more electricity at night when demand is low, and a solar array generates more electricity on bright days when output exceeds demand.
BigONE argues that this amount of energy is wasted, lowering earnings for renewable energy companies. BigONE believes that a solution to wasted energy is for renewable energy companies to offer it to bitcoin miners for a low price, fostering bitcoin mining of clean energy while also helping renewable energy companies make more money. We feel that this would be a win-win situation for everyone in the ecosystem and a reduction in the quantity of carbon released into the atmosphere. While excess energy squandered when demand is low is subsidized and supplied to bitcoin miners at a lower rate, adoption of renewable energy will continue to rise. BigONE believes that bitcoin is already incentivizing renewable energy. With the desire for cheaper electricity and a more environmentally friendly source, renewable energy adoption continues to rise, and renewable energy source providers earn from subsidizing the energy source while also profiting. While the bitcoin mining industry is currently moving to renewable energy sources, BigONE predicts that electricity consumption will continue to rise.
BigONE believes that Jack Dorsey’s Square White Paper has a lot of assumptions and economic forecasts. We believe that the Bitcoin incentivization of renewable energy is not progressing as quickly as it should be right now. BigONE believes that the shift should be accelerated and that more renewable energy companies should collaborate with bitcoin miners to promote “green” energy.
About BigOne
BigONE, formerly Yunbi.com, is a cryptocurrency exchange that has been in this business for some time and can claim to have extensive operational and technological experience, making us one of the top cryptocurrency exchanges in the world. We are an exchange platform dedicated to seeing our users maximize profits, assurance of the highest level of asset security, and a wonderful trading experience. In this post, we discussed with our users the bitcoin incentivization of renewable energy. With BigONE, all you do is to win.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
