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The U.S. Power Info Administration (EIA) estimates Bitcoin mining makes use of about 170 TWh of electrical energy per yr, or about 0.6% to 2.3% of annual American electrical energy consumption. The mixture market cap of 14 publicly traded U.S. mining firms totals about $20 billion, in line with an April report by JPMorgan Chase.
Because the Bitcoin mining {industry} has grown, so too has its status. And that status is basically unfavorable. Discussions with three completely different Bitcoin mining executives by extra mild about their operations and the truth of Bitcoin mining.
Chronos Power
Chronos Power is an off-grid Bitcoin mining firm that utilises stranded vitality sources. In different phrases, they flip vitality that will have in any other case been wasted into usable financial vitality by Bitcoin mining.
Describing his firm’s operations, James McCarthy, CEO of Chronos Power, stated: “We go and discover stranded vitality, usually within the oil subject. We work with oil and gasoline operators who’ve stranded gasoline belongings – belongings that may’t get to the market.”
What’s fascinating and distinctive about Chronos Power’s enterprise mannequin is that they don’t depend on {the electrical} grid. As a substitute, they convey Bitcoin mining on to the supply of stranded vitality.
“We deliver pure gasoline technology that we remanufacture in-house. And we deploy Bitcoin mining operations to eat that vitality, scale back their carbon emissions, and mine Bitcoin ,” McCarthy added.
EMERGENCY PRESS CONFERENCE – China’s Bitcoin Mining Ban pic.twitter.com/88uGRt4RcD
— nic carter (@nic__carter) Could 21, 2021
Such an operation has nothing however advantages for the surroundings. As a substitute of dropping vitality and creating pointless waste, oil and gasoline subject operators can now scale back emissions by turning their misplaced vitality belongings into clear electrical energy.
However what in regards to the impression on native communities?
“It is a large profit for native communities,” McCarthy stated. “Within the oil subject, it isn’t unusual for native communities to be stricken by these flares. An enormous orange flame in the midst of the evening goes to maintain you awake. They are often fairly loud relying on the dimensions of those flares. But additionally, there is a odor – a methane odor from that uncombusted methane that is being launched into the air, which may actually disturb a neighborhood.”
If a Bitcoin miner like Chronos Power is there to make use of that methane, then this drawback disappears. The methane is transformed into electrical energy reasonably than being launched into the environment.
It’s additionally price noting that in line with the U.S. Environmental Safety Company (EPA), methane is greater than 28 instances as potent as carbon dioxide at trapping warmth within the environment.
Tumble dryers use extra electrical energy than Bitcoin mining. pic.twitter.com/VBPA8c9q6z
— Dan Held (@danheld) June 9, 2022
Pantheon Mining
Pantheon Mining is a mining-as-a-service firm that works with “the best-in-class tech, product, and funding companions.”
Describing Pantheon’s area of interest method to Bitcoin mining, its CEO Lodewyck Berghuijs stated: “We principally work with high-net-worth people. We create small customized farms of, as an example, 1MW. All the pieces is privately owned, and we take excellent care of the secrecy of the places, including to the decentralisation of the community. You possibly can evaluate it to small doomsday vaults; there’ll at all times be nodes working if something occurs on this planet.”
Pantheon Mining’s CEO Lodewyck Berghuijs in entrance of a rack of Bitcoin mining machines.
That is an fascinating counterpoint to the narrative that Bitcoin miners changing into too massive may result in a scarcity of decentralisation for the Bitcoin community. If many smaller farms are working in clandestine places, then the dimensions of mining firms turns into irrelevant. There’ll at all times be hashing energy coming from smaller gamers that nobody even is aware of about.
Why is it so essential to assist the Bitcoin community on this manner? “Bitcoin mining is the inspiration of a brand new decentralised retailer of worth that’s incorruptible and can’t be taken down by any authorities,” Berghuijs defined.
Many individuals agree, and it’s a part of the explanation we needed to jot down this text and get an inside take from people concerned in managing these machines.
In relation to reporting on mining, most of what’s typically parroted in mainstream media includes the alleged large vitality utilization of Bitcoin miners. The idea follows that utilizing a lot vitality needs to be dangerous as a result of it simply is. However is there extra to the story?
Berghuijs introduced up level in regards to the want for vitality being useful in some cases, saying: “To get electrical energy to a extra distant spot in Africa, as an example, you want a big purchaser of vitality. In any other case, why would they construct one thing that leads to a loss? That is the place Bitcoin miners may be of nice use; you’ve got a continuing taker of electrical energy and an incentive to create high-quality infrastructure.”
The Nebraska Public Energy District testified on Bitcoin Mining within the Senate final month.
They are saying that Bitcoin mining is a boon to rural communities.
One web site has $65m financial impression, 200 related jobs, and $5.5m tax income for an in any other case struggling space.
Distinctive… pic.twitter.com/AALwGLON3h
— Neeraj Ok. Agrawal (@NeerajKA) April 13, 2023
Phoenix Group
Based mostly within the United Arab Emirates, Phoenix Group “consists of 29 distinctive firms working in 5 distinct verticals.” Moderately than being a single firm that operates a couple of Bitcoin mining farms, Phoenix Group’s portfolio of firms offers companies together with mining and internet hosting, cloud mining, and retail gross sales of chilly wallets and mining gear.
Phoenix Group’s CEO Seyed Mohammad Alizadehfard (Bijan)
CEO of Phoenix Group, Seyed Mohammad Alizadehfard (Bijan), stated: “Phoenix Group operates 9 mining services throughout the US, Canada, CIS, and the UAE, leveraging superior expertise and revolutionary strategies to maximise effectivity and minimise environmental impression. Our mining and internet hosting companies, cloud mining choices, and retail distribution of mining {hardware} and chilly wallets additional improve our complete providing within the cryptocurrency house.”
He additionally talked about that the enterprise includes “regulated crypto funding platforms like Change M2,” which the corporate’s web site describes as “an Abu Dhabi-based regulated crypto funding platform developed by industry-leading consultants.”
Returning to the mining vertical, when requested about mining’s impression on native communities, Bijan famous that the corporate’s “mining services create job alternatives and contribute to native economies. We additionally have interaction in neighborhood improvement initiatives, supporting instructional and technological developments to foster a constructive and inclusive surroundings.”
“By optimising our vitality utilization and incorporating renewable sources, we contribute to the soundness and sustainability of {the electrical} grid,” Bijan stated on the impression of mining on {the electrical} grid.
The Actuality of Bitcoin Mining Revealed
When requested about essentially the most prevalent false impression about Bitcoin mining, all three responses concerned the narrative of Bitcoin being environmentally damaging. And all three executives talked about the methods their operations, and mining operators usually, profit the surroundings.
Cryptocurrency is like Tinkerbell’s mild – its energy supply relies solely on sufficient kids believing in it. And sadly what’s actual is that its progress may single-handedly push international temperatures above the tipping level of two°C. #Bitcoin #Mining #ClimateChange pic.twitter.com/ZyPsuKdXEI
— Invoice Maher (@billmaher) Could 1, 2021
“Folks have it backwards when it comes to Bitcoin being a shopper of vitality. It’s not a shopper of mass vitality as a result of it is an financial arbitrage ,” stated McCarthy. “Miners aren’t going to return in and begin mining Bitcoin someplace the place it isn’t economical for them. There must be an incentive there. And often that incentive is extra vitality. The very fact of the matter is to have dependable vitality, you need to have a dependable, good shopper of vitality. Nobody’s going to be producing vitality for an unstable demand. You must have secure demand for a secure provide. In order that’s why Bitcoin mining is definitely a constructive for the vitality {industry} total.”
Bijan stated: “We’re deeply dedicated to decreasing our environmental footprint. Our operations incorporate energy-efficient applied sciences, and we actively search renewable vitality sources to energy our mining services.”
Berghuijs took an identical stance, saying: “Bitcoin is essentially the most ESG-friendly funding on this planet as of now. The vitality we use is all 100% from sustainable sources: suppose hydro, nuclear, and photo voltaic.”
These three mining firms characterize a various set of enterprise fashions, they usually function in numerous geographical jurisdictions. All of them profit native economies, communities, and ecosystems.
Let this text serve for example to those that decry Bitcoin mining as something however a internet profit to society.
The U.S. Power Info Administration (EIA) estimates Bitcoin mining makes use of about 170 TWh of electrical energy per yr, or about 0.6% to 2.3% of annual American electrical energy consumption. The mixture market cap of 14 publicly traded U.S. mining firms totals about $20 billion, in line with an April report by JPMorgan Chase.
Because the Bitcoin mining {industry} has grown, so too has its status. And that status is basically unfavorable. Discussions with three completely different Bitcoin mining executives by extra mild about their operations and the truth of Bitcoin mining.
Chronos Power
Chronos Power is an off-grid Bitcoin mining firm that utilises stranded vitality sources. In different phrases, they flip vitality that will have in any other case been wasted into usable financial vitality by Bitcoin mining.
Describing his firm’s operations, James McCarthy, CEO of Chronos Power, stated: “We go and discover stranded vitality, usually within the oil subject. We work with oil and gasoline operators who’ve stranded gasoline belongings – belongings that may’t get to the market.”
What’s fascinating and distinctive about Chronos Power’s enterprise mannequin is that they don’t depend on {the electrical} grid. As a substitute, they convey Bitcoin mining on to the supply of stranded vitality.
“We deliver pure gasoline technology that we remanufacture in-house. And we deploy Bitcoin mining operations to eat that vitality, scale back their carbon emissions, and mine Bitcoin ,” McCarthy added.
EMERGENCY PRESS CONFERENCE – China’s Bitcoin Mining Ban pic.twitter.com/88uGRt4RcD
— nic carter (@nic__carter) Could 21, 2021
Such an operation has nothing however advantages for the surroundings. As a substitute of dropping vitality and creating pointless waste, oil and gasoline subject operators can now scale back emissions by turning their misplaced vitality belongings into clear electrical energy.
However what in regards to the impression on native communities?
“It is a large profit for native communities,” McCarthy stated. “Within the oil subject, it isn’t unusual for native communities to be stricken by these flares. An enormous orange flame in the midst of the evening goes to maintain you awake. They are often fairly loud relying on the dimensions of those flares. But additionally, there is a odor – a methane odor from that uncombusted methane that is being launched into the air, which may actually disturb a neighborhood.”
If a Bitcoin miner like Chronos Power is there to make use of that methane, then this drawback disappears. The methane is transformed into electrical energy reasonably than being launched into the environment.
It’s additionally price noting that in line with the U.S. Environmental Safety Company (EPA), methane is greater than 28 instances as potent as carbon dioxide at trapping warmth within the environment.
Tumble dryers use extra electrical energy than Bitcoin mining. pic.twitter.com/VBPA8c9q6z
— Dan Held (@danheld) June 9, 2022
Pantheon Mining
Pantheon Mining is a mining-as-a-service firm that works with “the best-in-class tech, product, and funding companions.”
Describing Pantheon’s area of interest method to Bitcoin mining, its CEO Lodewyck Berghuijs stated: “We principally work with high-net-worth people. We create small customized farms of, as an example, 1MW. All the pieces is privately owned, and we take excellent care of the secrecy of the places, including to the decentralisation of the community. You possibly can evaluate it to small doomsday vaults; there’ll at all times be nodes working if something occurs on this planet.”
Pantheon Mining’s CEO Lodewyck Berghuijs in entrance of a rack of Bitcoin mining machines.
That is an fascinating counterpoint to the narrative that Bitcoin miners changing into too massive may result in a scarcity of decentralisation for the Bitcoin community. If many smaller farms are working in clandestine places, then the dimensions of mining firms turns into irrelevant. There’ll at all times be hashing energy coming from smaller gamers that nobody even is aware of about.
Why is it so essential to assist the Bitcoin community on this manner? “Bitcoin mining is the inspiration of a brand new decentralised retailer of worth that’s incorruptible and can’t be taken down by any authorities,” Berghuijs defined.
Many individuals agree, and it’s a part of the explanation we needed to jot down this text and get an inside take from people concerned in managing these machines.
In relation to reporting on mining, most of what’s typically parroted in mainstream media includes the alleged large vitality utilization of Bitcoin miners. The idea follows that utilizing a lot vitality needs to be dangerous as a result of it simply is. However is there extra to the story?
Berghuijs introduced up level in regards to the want for vitality being useful in some cases, saying: “To get electrical energy to a extra distant spot in Africa, as an example, you want a big purchaser of vitality. In any other case, why would they construct one thing that leads to a loss? That is the place Bitcoin miners may be of nice use; you’ve got a continuing taker of electrical energy and an incentive to create high-quality infrastructure.”
The Nebraska Public Energy District testified on Bitcoin Mining within the Senate final month.
They are saying that Bitcoin mining is a boon to rural communities.
One web site has $65m financial impression, 200 related jobs, and $5.5m tax income for an in any other case struggling space.
Distinctive… pic.twitter.com/AALwGLON3h
— Neeraj Ok. Agrawal (@NeerajKA) April 13, 2023
Phoenix Group
Based mostly within the United Arab Emirates, Phoenix Group “consists of 29 distinctive firms working in 5 distinct verticals.” Moderately than being a single firm that operates a couple of Bitcoin mining farms, Phoenix Group’s portfolio of firms offers companies together with mining and internet hosting, cloud mining, and retail gross sales of chilly wallets and mining gear.
Phoenix Group’s CEO Seyed Mohammad Alizadehfard (Bijan)
CEO of Phoenix Group, Seyed Mohammad Alizadehfard (Bijan), stated: “Phoenix Group operates 9 mining services throughout the US, Canada, CIS, and the UAE, leveraging superior expertise and revolutionary strategies to maximise effectivity and minimise environmental impression. Our mining and internet hosting companies, cloud mining choices, and retail distribution of mining {hardware} and chilly wallets additional improve our complete providing within the cryptocurrency house.”
He additionally talked about that the enterprise includes “regulated crypto funding platforms like Change M2,” which the corporate’s web site describes as “an Abu Dhabi-based regulated crypto funding platform developed by industry-leading consultants.”
Returning to the mining vertical, when requested about mining’s impression on native communities, Bijan famous that the corporate’s “mining services create job alternatives and contribute to native economies. We additionally have interaction in neighborhood improvement initiatives, supporting instructional and technological developments to foster a constructive and inclusive surroundings.”
“By optimising our vitality utilization and incorporating renewable sources, we contribute to the soundness and sustainability of {the electrical} grid,” Bijan stated on the impression of mining on {the electrical} grid.
The Actuality of Bitcoin Mining Revealed
When requested about essentially the most prevalent false impression about Bitcoin mining, all three responses concerned the narrative of Bitcoin being environmentally damaging. And all three executives talked about the methods their operations, and mining operators usually, profit the surroundings.
Cryptocurrency is like Tinkerbell’s mild – its energy supply relies solely on sufficient kids believing in it. And sadly what’s actual is that its progress may single-handedly push international temperatures above the tipping level of two°C. #Bitcoin #Mining #ClimateChange pic.twitter.com/ZyPsuKdXEI
— Invoice Maher (@billmaher) Could 1, 2021
“Folks have it backwards when it comes to Bitcoin being a shopper of vitality. It’s not a shopper of mass vitality as a result of it is an financial arbitrage ,” stated McCarthy. “Miners aren’t going to return in and begin mining Bitcoin someplace the place it isn’t economical for them. There must be an incentive there. And often that incentive is extra vitality. The very fact of the matter is to have dependable vitality, you need to have a dependable, good shopper of vitality. Nobody’s going to be producing vitality for an unstable demand. You must have secure demand for a secure provide. In order that’s why Bitcoin mining is definitely a constructive for the vitality {industry} total.”
Bijan stated: “We’re deeply dedicated to decreasing our environmental footprint. Our operations incorporate energy-efficient applied sciences, and we actively search renewable vitality sources to energy our mining services.”
Berghuijs took an identical stance, saying: “Bitcoin is essentially the most ESG-friendly funding on this planet as of now. The vitality we use is all 100% from sustainable sources: suppose hydro, nuclear, and photo voltaic.”
These three mining firms characterize a various set of enterprise fashions, they usually function in numerous geographical jurisdictions. All of them profit native economies, communities, and ecosystems.
Let this text serve for example to those that decry Bitcoin mining as something however a internet profit to society.
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