KEY POINTS
- UN researchers urged regulatory interventions that balance innovation and environmental protection
- A February study found that Bitcoin mining and green hydrogen technologies can be a "dynamic duo"
- Shifting to renewable operations can combat biased narratives around $BTC mining: Gryphon Digital CEO Rob Chang
- Chang said Bitcoin can hit $150,000 by the end of 2024, at least based on historical price trends post-halving
Bitcoin mining, the heartbeat of the lively community driving interest and awareness about decentralized cryptocurrency, is experiencing a revolution that could lift the biased narrative about the industry hogging electricity that could have been used for other sectors.
An industry mired in 'unintended consequences'
A United Nations study published on the Earth's Future journal in October called for "urgent action" from scientific, policy and advocacy groups over the "environmental costs of BTC mining."
The researchers said the global Bitcoin mining industry consumed 173.42 TWh of electricity from 2020 through 2021, a figure they said is bigger than the electricity consumption of most nations.
While the researchers raised concerns about the environmental impacts of the industry, Professor Kaveh Madani, the Director of the United Nations University Institute for Water, Environment and Health (UNI-INWEH), who led the study, noted that innovations in technology are often associated with unintended consequences.
"Our findings should not discourage the use of digital currencies. Instead, they should encourage us to invest in regulatory interventions and technological advancements that improve the efficiency of the global financial system without harming the environment," he noted.
A potential 'dynamic duo'
Despite lingering concerns about the implications of the industry on the environment, some researchers also found that Bitcoin mining can actually be optimized "to enhance the deployment of renewable energy sources."
A February study published on the Proceedings of the National Academy of Sciences (PNAS) journal, found that green hydrogen technologies, particularly solar and wind power, when synergized with Bitcoin mining operations, can address concurrent challenges around climate change and crypto growth.
The researchers recommended that profits from the mining industry be invested into building green hydrogen infrastructure to further propel renewable energy transition in the sector.
How important is renewable energy transition to the industry?
Rob Chang, the CEO and founder of Gryphon Digital Mining, a leader in sustainable, carbon neutral $BTC mining, exclusively shared with International Business Times his insights on renewable mining operations.
"Renewable energy operations are very important to the Bitcoin mining industry. Not only does using renewable energy combat the biased narrative that Bitcoin mining is using electricity at the expense of more 'worthy' areas, but the use of renewable energy is a more environmentally responsible way of operating any business," he said.
On new studies suggesting the industry can help foster the world's transition efforts toward renewable energy, Chang couldn't agree more. He noted that there are global efforts within the industry to identify alternative energy sources for miners, thus helping drive the creation of more renewable power that helps countries looking to make the huge change.
#ESG focus and commitment to a greener planet.
— Gryphon Digital Mining (@GryphonMining) July 2, 2024
Our operations are powered by 100% renewable energy, ensuring Gryphon's mining processes are carbon-neutral and pave the way for a sustainable future.
Learn more about our initiatives here: https://t.co/unWq5fQSsf $GRYP #Bitcoin pic.twitter.com/HWoIMWlwVH
Challenges ahead for miners looking to take that step
Chang, who was the former CFO of Riot Blockchain, acknowledged that other mining firms that haven't yet transitioned will face challenges along the way, considering that such miners "have contracts or fixed assets that use non-renewable energy mixes already."
He pointed out that switching power sources isn't easy since most areas only have one power source. Shifting is definitely an "expensive and time-consuming endeavor that most miners would not embark on," he said. On the other hand, he revealed that miners new to the business have displayed a "preference" to renewable operations.
How Gryphon is leading the way toward more responsible mining
Nasdaq-listed Gryphon was recently independently certified to be 100% renewable. To be exact, "Gryphon operates in the purest possible form of environmental responsibility as we use 100% hydro power and are independently certified to be 0 carbon for scope 1 and scope 2 emissions," Chang explained.
It is possible to be both profitable and environmentally responsible, he said. Gryphon also has carbon offset credits that can be used to offset scope 3 emissions, and it is among the world's most efficiently-run mining companies, ranking No. 1 in Bitcoin efficiency in 17 of the last 33 months.
Powering operations with 100% renewable energy is not just a goal, it's our reality. Through hydropower, we harness the power of the earth to fuel our mining activities.$GRYP is leading a sustainable future in digital #Bitcoin mining. https://t.co/pG34dsyMgU $BTC pic.twitter.com/Rnz2hweXxN
— Gryphon Digital Mining (@GryphonMining) June 27, 2024
On $BTC prices and year-end targets
Bitcoin was in the red for most days of the past week, but it has since slightly recovered and is inching closer to $60,000. Chang believes the world's largest cryptocurrency by market value "will be at least $150,000 by the end of the year."
Historically, Bitcoin prices doubled within six months after a halving. The digital currency went through its fourth halving in April. The token was around the $60,000-$70,000 range moving toward the halving, "so a doubling would be around $120,000-$140,000," he projected.
The positive impact of spot $BTC exchange-traded funds (ETFs) shouldn't be ignored either, Chang said, so it's safe to say that the market is still in the early stages of another bull run. "If we were to overlay the Bitcoin price charts with similar time periods in the last few cycles, the similarities are remarkably close," he said.
