A study conducted by Texas A&M University, one of the largest and most prestigious in the United States, highlighted the benefits Bitcoin mining can bring to help stabilize energy grids.
While some claim that Bitcoin mining consumes too much energy to validate transactions on the blockchain and that it harms the environment, many others have started to dig deeper into this topic to understand the potential benefits of mining offers and the value of cryptocurrency mining. .
Bitcoin primarily stands out as a store of value asset, but it also functions as a decentralized medium of exchange that allows people to transact without borders. Hence, the adoption of cryptocurrency is increasing globally. Currently, it is estimated that Bitcoin has around 200 million users worldwide And, as bitcoin’s interest and adoption grew, so did its computing power or hash ratethat’s more than 366 exahashes per second (EH/s), today.
This amount of energy in the blockchain network, which represents the power of connected miners, is computationally intensive, said Texas A&M University, one of the institutions that has been interested in delving into the subject of mining. Bitcoin mining, its impact and benefits.
How Bitcoin can stabilize power grids?
According to the recently published study by Texas A&M University, the energy consumption of Bitcoin mining will increase as the crypto industry continues to progress.
However, Bitcoin mining has several special characteristics that play a fundamental role in the flexibility of energy demand. In a report published last year, data analytics and research firm Arcane Research explained that Bitcoin mining has the ability to be agnostic, modular and portable. This means that BTC miners can locate their facilities anywhere, operate within available power generation capacity, and disconnect or relocate their equipment at any time to move around and take advantage of excess power to a certain extent. area or region.
For this reason, in its study, Texas A&M University pointed out that Bitcoin mining can significantly contribute to the stability and reliability of the power grid.
Texas, an Example Bitcoin Mining Use Case
To demonstrate the flexibility of Bitcoin miners’ energy demandTexas A&M University shed light on the behavior of cryptominers in the state of Texas, USA.
Bitcoin miners take advantage of the abundant and cheap energy potential offered by the state to support their operations on the blockchain network. However, as demand and stress on the Texas power grid increased, Bitcoin and other cryptocurrency miners immediately took their equipment offline to ensure power to vital areas. For example, during heat waves or severe winter storms in the state, authorities issue requests for energy consumers to conserve energy, the university noted. Bitcoin miners have complied with these demands by shutting down their operations during times of high stress and demand.
So, “when the network is stressed, cryptominers go offline, demonstrating potential for flexibility in (energy) demand,” said the professor in the university’s Department of Electrical and Computer Engineering and associate director of the Energy Institute of Texas A&M, Dr. Le Xie.
In addition to looking at power consumption and power demand flexibility, the Texas A&M University study also focused on the carbon footprint of crypto mining facilities and its impact on the market. Energy.
The Texas A&M Blockchain and Energy Consortium team visited the facilities of Bitcoin mining company, Riot Blockchain, located in the town of Rockdale, Milam County. Riot Blockchain is one of the largest mining equipment operators in the United States.
The Benefits of Crypto Mining
Despite the challenges Bitcoin mining faces, due to the debate that its energy consumption has generated, several studies have shown that there is great potential around its energy consumption. In addition to contributing to the stability of energy networks, Bitcoin mining can also boost economic development, accelerate the creation of new jobs, and encourage clean and sustainable energy production, among other benefits.
The Universidad de Texas A&M concluded that, aunque the energy used to validate the transactions in the Bitcoin blockchain algunas veces es mayor a la que ciertos países en déarrollo, esta actividad ha demostrado un grand potencial de flexibilidad en el consumo energético, por lo What can be a positive and quite significant contributor to improved stability and reliability energy networks.