Throughout history, every great breakthrough often came with negative consequences and side effects. It’s the same story with blockchain. The technology has the potential to revolutionise every industry it comes into contact with. But the current excitement pertaining to quick profits with cryptocurrencies is causing many early adoptors to overlook the side effects that come with such a disruptive breakthrough.
Ever since Bitcoin mania entered the mainstream, environmentalists worry about the impact blockchain mining will have on the planet. Unlike existing currencies, bitcoin and other cryptocurrencies are not tied to a central bank and cannot be printed (like in the case of a quantitative easing). Instead it exists only in digital form and takes vast amounts of computer power to create one.
In order to create a bitcoin, a computer must access the Bitcoin network and solve a complicated math problem, a process known as “mining.” As the Bitcoin network grows, the math problems computers need to solve to mine additional bitcoins become more complicated – which means that each additional bitcoin requires more processing power.
This makes mining highly dependent on energy supply. It requires huge amounts of energy that currently comes from inefficient, coal-fired power plants in places where environmental conservation is lax. This not only pollutes the environment but also emits greenhouse gases that accelerate climate change. If the demand for blockchain mining keeps growing, then the demand for energy that powers the network will only explode. The mining of bitcoin alone could be consuming as much energy as the whole of the United States by the middle of next year. Unless we find alternative sources of energy that are cleaner and friendlier to the environment, the road to blockchain innovation will only accelerate the impact fossil fuels have on our planet.
The hunt for cheap energy has often compromised the need for clean energy – causing mining activities to be centralised in one area and consequently undermine the decentralised nature of the distributed blockchain ledger.
We believe it is crucial that the energy used in the blockchain revolution needs to come from ecologically friendly resources as much as possible. In that process, our goal is to demystify investment opportunities in both blockchain technologies and renewable energy.
Minenergy is on a mission to build a cleaner future for blockchain technology. We aim to build the world’s most sustainable and profitable solution to produce renewable energy to power the blockchain revolution.
At Minenergy, we are struck by the pursuit of identifying and tackling world-scale problems opportunities. ‘Because if you only have moderate ambition, you accomplish that and then what?’.
Minenergy stands upon this very principle. There is no doubt that blockchain will fuel the Internet of the future – we just want to make sure that the next generation of blockchain applications are environmentally friendly. We are looking to not only employ renewable energy to power blockchain technology, but also build a business model whereby dividends from existing operations can be used to reinvest in additional renewable energy projects all around the world.
For more updates on Minenergy – visit minenergy.io and sign up for our newsletter!