finbold.com
The vast quantities of power necessary to mine Bitcoin have prompted a debate about whether the energy required to create the digital commodity is worth the potential environmental problems linked with it.
On the other hand, one particular company in western Pennsylvania, claims they have discovered a method to put cryptocurrency mining to work in order to clean up their neighborhood, according to a report by Reuters.
Using waste from decades-old coal power plants, Stronghold Digital Mining (NASDAQ: SDIG) generates energy that runs hundreds of supercomputers that are engaged in Bitcoin mining.
Chief executive officer of Stronghold, Greg Beard stated:
“The Bitcoin mining network itself is the largest decentralized computer network in the world, and it’s power hungry, so co-locating Bitcoin mining and a power plant makes a lot of sense.”
How is the waste used to mine Bitcoin?
A byproduct of burning coal to generate power is left over known as coal ash which has the potential to leak into groundwater and damage streams, as it includes heavy metals that are deemed carcinogenic.
Coal ash is collected from a neighboring mine and processed at a waste coal processing plant, which is owned and operated by Stronghold. Afterward, the coal ash is separated from the rest of the waste and crushed before being sent to a boiler building where it is burnt to create energy that is used to power the firm’s Bitcoin mining operation.
“I think this is a perfect niche for crypto,” opined Bill Spence, co-chairman of Stronghold Digital Mining.
Despite the controversies surrounding Bitcoin’s energy consumption and environmental effect, Finbold revealed information from a study released on January 25, 2022, that stated BTC accounted for just 0.08% of world carbon dioxide (CO2) emissions in 2021, meaning that talking points targeting the network’s energy usage seem to have been overstated.
A synopsis of Bitcoin mining
A method known as mining is used to create Bitcoin. Mining requires computers to solve complicated puzzles in return for the virtual currency, which is issued in the form of Bitcoin. Powering those machines consumes a significant amount of power.
More and more individuals are mining Bitcoins using unconventional methods as the digital asset grows in popularity. In particular, one crypto enthusiast recently built a 6kW solar-powered Bitcoin mining rig.
Elsewhere, last year a historic New York power plant resorted to mining Bitcoin with excess energy instead of selling it.