There has been a lot of discussion around mining and mining facilities in the crypto space and how it grows with access to power for efficient mining. Coin Metric’s founder, Nic Carter, explained how there is a concentration of mining activities where there is enough power as it consumes a lot of energy.
Recently, Carter released research on numerous claims by people who believe that crypto mining affects the environment significantly. There has been some recent interest in mining, and this is due to the increasing worth of Bitcoin and other digital assets. The increased activities have made environmentalists conclude that the use of energy is causing an environmental disaster, which Carter doesn’t agree with based on his research.
Carter releases articles on energy consumption for mining
The expert released an article on the subject called “Noahbjectivity on Bitcoin Mining,” which he wrote on March 30. The entrepreneur explained and responded to some claims by a Blomberg writer, Noah Smith, who released an article on March 26, explaining how mining affects the ecosystem. The columnist titled the article “Bitcoin miners on a path to self-destruction.”
Smith’s article caused controversy, especially within the digital asset space, where people are lovers and supporters of cryptocurrencies. Carter spoke on Smith’s claim as Bitcoin being a unique asset, which the latter explained the asset’s increasing price leads to more energy consumption than other cryptos.
The entrepreneur drew attention to gold while explaining how it is similar to Bitcoin because the higher the market value, the more people would be interested in mining the yellow metal. There is another claim by the columnist where he said that Bitcoin miners use so much energy that they deprive residents of electricity. Carter disagreed with that claim, and he explained that mining activities happen mostly in areas where there is excess energy.
Carter rebutted Smith’s claim for total energy usage
One of the most popular mining locations is China, as the nation has enough energy to cater to its population and other activities. Due to the affordable price of electricity, many mining firms are now based in the Asian country to benefit from power supply availability.
China has many areas where there is much-unused energy, such as Inner Mongolia, Yunnan, and Sichuan. He added that these regions account for a huge part of mining activities for the sector while still having enough energy for locals. These regions have affordable power supplies because they use numerous power sources, such as coal, water, wind, solar and other means to power the areas. Asides from having enough power, the regions have a low population meaning that some of the energy is left unused.
The expert explained how the country had curtailed the abundance of energy due to the different avenues for making power. He revealed that the regions have enough energy to power mining activities without causing problems in the area or affecting the environment. He concluded by mentioning that the surplus energy in areas with a high concentration complicates the argument, which claims total energy consumption.