Bitcoin is an exceptionally flexible consumer of energy, research, and data analytics firm Arcane Research noted in its report titled: “How Bitcoin Mining Can Transform the Energy Industry”.
The energy consumption of Bitcoin has been one of the most controversial topics debated in the crypto industry. However, the Arcane Research firm ensures that a large part of the population, even within the crypto community, is unaware of the key aspects that make Bitcoin an exceptionally flexible energy consumption and very different from the rest.
Arcane Research listed these aspects in its report “How Bitcoin Mining Can Transform the Energy Industry”, where it provides a list of the 5 characteristics of Bitcoin’s energy consumption. Let’s see.
The energy consumption of the Bitcoin network
Perhaps the biggest highlight of Bitcoin’s energy consumption is the unique flexibility with which Bitcoin miners can literally move based on energy availability.
As Arcane Research explains, bitcoin miners are exceptionally flexible regarding when and where they consume power; a particularly useful reality to help strengthen energy networks and solve some of the biggest problems that exist within this sector today, such as gas flaring.
1. Bitcoin mining is sensitive to the price of electricity
Bitcoin miners act in the industry as a “refiner” of energy. “The miner sends electricity to his machines, which refines the electricity into bitcoin,” the research and analytics company said. However, crypto miners are particularly sensitive to the price of electricity, since it represents close to 80% of the network’s operating costs.
Therefore, depending on the electricity costs, the miners of this cryptocurrency have the ability to adjust the energy consumption of Bitcoin up or down or to move their operations with relative ease, in search of cheaper electricity.
2. Bitcoin mining is interruptible
Bitcoin miners can connect and disconnect their computers from the network without causing damage to the network.
An example of this characteristic was seen last year when the Chinese government imposed harsh measures against companies engaged in this industry. Although the hash rate or computational power of Bitcoin declined in the weeks following China’s ban on the use and mining of BTC, the blockchain network has now recovered significantly. Even last June, Bitcoin marked a new all-time high in its hash rate, when it reached a power of 231.5 exahashes per second (EH/s).
Likewise, the miners have also immediately disconnected their equipment during climatic changes and the strong storms seen in the state of Texas (United States), in order to support the local government and guarantee the energy supply to the citizens. The same case has happened with BTC miners in Iran in the last year.
Therefore, Arcane Research highlighted that Bitcoin miners can interrupt their energy production and consumption at any time, unlike data centers in other industries, such as those used by social media platforms.
3. Bitcoin miners are agnostic
Bitcoin miners can locate their mining facilities almost anywhere in the world where there is cheap power and internet access.
Of course, this availability is also subject to the existing laws and regulations in the different countries on the activity of extracting bitcoins from the network. But, in a general sense, the Bitcoin industry allows to take the consumer of energy directly to the source of energy, Arcane Research indicated; Therefore, this industry can contribute significantly to reducing several of the problems that affect the electrical system, such as energy waste and the burning of natural gas, and to promote the use of renewable energy sources.
4. Bitcoin power consumption is modular
Another feature of Bitcoin’s power consumption is modularity, which allows the network’s mining load to be adjusted or designed to match the available power generation capacity.
Arcane Research explained that this capacity allows for improved economy and the efficient use of energy, especially when the mining load of the Bitcoin network is combined with the excess production capacity of a power generator.
5. Portability in Bitcoin mining
In the Bitcoin industry, it is increasingly common to see solutions designed under the “Plug-and-Play” model to optimize the portability of BTC miners. And it is that in this industry, miners have the ability to move their mining machines to take advantage of the energy surplus in a certain area or region and, when this energy is no longer available in excess, they can move to a new location.
Bitcoin as a tool to strengthen the energy system
After evaluating these 5 key features, Arcane Research has differentiated Bitcoin’s energy consumption from other networks and industries, highlighting how the network is serving as a powerful energy tool that can help solve some of today’s biggest energy challenges.
In conclusion, the research and analytics firm indicated that Bitcoin mining can “strengthen power grids, improve renewable energy economics, mitigate natural gas flaring, and reduce heating costs,” by reusing heat generated by electricity. crypto mining equipment and facilities.