The U.S. Vitality 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 corporations totals about $20 billion, in keeping with an April report by JPMorgan Chase.
Because the Bitcoin mining {industry} has grown, so too has its fame. And that fame is basically detrimental. Discussions with three totally different Bitcoin mining executives shed extra gentle on their operations and the truth of Bitcoin mining.
Chronos Vitality
Chronos Vitality is an off-grid Bitcoin mining firm that utilises stranded vitality sources. In different phrases, they flip vitality that might have in any other case been wasted into usable financial vitality by way of Bitcoin mining.
Describing his firm’s operations, James McCarthy, CEO of Chronos Vitality, stated: “We go and discover stranded vitality, usually within the oil discipline. 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 Vitality’s enterprise mannequin is that they don’t depend on {the electrical} grid. As an alternative, they carry Bitcoin mining on to the supply of stranded vitality.
“We carry pure gasoline technology that we remanufacture in-house. And we deploy Bitcoin mining operations to devour that vitality, cut 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) Might 21, 2021
Such an operation has nothing however advantages for the surroundings. As an alternative of dropping vitality and creating pointless waste, oil and gasoline discipline operators can now cut back emissions by turning their misplaced vitality belongings into clear electrical energy.
However what concerning the affect on native communities?
“This can be a large profit for native communities,” McCarthy stated. “Within the oil discipline, it is not unusual for native communities to be tormented by these flares. An enormous orange flame in the midst of the night time goes to maintain you awake. They are often fairly loud, relying on the dimensions of those flares. But in addition, there is a scent – a methane scent from that uncombusted methane that is being launched into the air, which might actually disturb a neighborhood.”
If a Bitcoin miner like Chronos Vitality is there to make use of that methane, then this drawback disappears. The methane is transformed into electrical energy somewhat than being launched into the environment.
It’s additionally price noting that in keeping 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 largely 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 areas, including to the decentralization of the community. You might evaluate it to small doomsday vaults; there’ll at all times be nodes operating if something occurs on the earth.”
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 giant might result in an absence of decentralization for the Bitcoin community. If many smaller farms are working in clandestine areas, then the dimensions of mining corporations 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 vital to help the Bitcoin community on this approach? “Bitcoin mining is the inspiration of a brand new decentralized 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 wished to put in writing this text and get an inside take from people concerned in managing these machines.
On the subject of reporting on mining, most of what’s usually parroted in mainstream media entails the alleged large vitality utilization of Bitcoin miners. The idea follows that utilizing a lot vitality needs to be unhealthy as a result of it simply is. However is there extra to the story?
Berghuijs introduced up a very good level concerning 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 ends in a loss? That is the place Bitcoin miners will be of nice use; you may have 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 affect, 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
Primarily based within the United Arab Emirates, Phoenix Group “consists of 29 distinctive corporations working in 5 distinct verticals.” Somewhat than being a single firm that operates a number of Bitcoin mining farms, Phoenix Group’s portfolio of corporations supplies providers 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 know-how and modern strategies to maximise effectivity and reduce environmental affect. Our mining and internet hosting providers, 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 entails “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 affect on native communities, Bijan famous that the corporate’s “mining services create job alternatives and contribute to native economies. We additionally interact in neighborhood growth initiatives, supporting academic and technological developments to foster a optimistic and inclusive surroundings.”
“By optimizing our vitality utilization and incorporating renewable sources, we contribute to the steadiness and sustainability of {the electrical} grid,” Bijan stated on the affect 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 gentle – its energy supply is predicated solely on sufficient kids believing in it. And sadly what’s actual is that its development might single-handedly push world temperatures above the tipping level of two°C. #Bitcoin #Mining #ClimateChange pic.twitter.com/ZyPsuKdXEI
— Invoice Maher (@billmaher) Might 1, 2021
“Folks have it backward by way of 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 come back in and begin mining Bitcoin someplace the place it is not economical for them. There must be an incentive there. And often, that incentive is extra vitality. The actual fact of the matter is to have dependable vitality, it’s a must 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 optimistic for the vitality {industry} general.”
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 the earth as of now. The vitality we use is all 100% from sustainable sources: suppose hydro, nuclear, and photo voltaic.”
These three mining corporations characterize a various set of enterprise fashions, and so they function in numerous geographical jurisdictions. All of them profit native economies, communities, and ecosystems.
Let this text serve for instance to those that decry Bitcoin mining as something however a web profit to society.
The U.S. Vitality 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 corporations totals about $20 billion, in keeping with an April report by JPMorgan Chase.
Because the Bitcoin mining {industry} has grown, so too has its fame. And that fame is basically detrimental. Discussions with three totally different Bitcoin mining executives shed extra gentle on their operations and the truth of Bitcoin mining.
Chronos Vitality
Chronos Vitality is an off-grid Bitcoin mining firm that utilises stranded vitality sources. In different phrases, they flip vitality that might have in any other case been wasted into usable financial vitality by way of Bitcoin mining.
Describing his firm’s operations, James McCarthy, CEO of Chronos Vitality, stated: “We go and discover stranded vitality, usually within the oil discipline. 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 Vitality’s enterprise mannequin is that they don’t depend on {the electrical} grid. As an alternative, they carry Bitcoin mining on to the supply of stranded vitality.
“We carry pure gasoline technology that we remanufacture in-house. And we deploy Bitcoin mining operations to devour that vitality, cut 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) Might 21, 2021
Such an operation has nothing however advantages for the surroundings. As an alternative of dropping vitality and creating pointless waste, oil and gasoline discipline operators can now cut back emissions by turning their misplaced vitality belongings into clear electrical energy.
However what concerning the affect on native communities?
“This can be a large profit for native communities,” McCarthy stated. “Within the oil discipline, it is not unusual for native communities to be tormented by these flares. An enormous orange flame in the midst of the night time goes to maintain you awake. They are often fairly loud, relying on the dimensions of those flares. But in addition, there is a scent – a methane scent from that uncombusted methane that is being launched into the air, which might actually disturb a neighborhood.”
If a Bitcoin miner like Chronos Vitality is there to make use of that methane, then this drawback disappears. The methane is transformed into electrical energy somewhat than being launched into the environment.
It’s additionally price noting that in keeping 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 largely 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 areas, including to the decentralization of the community. You might evaluate it to small doomsday vaults; there’ll at all times be nodes operating if something occurs on the earth.”
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 giant might result in an absence of decentralization for the Bitcoin community. If many smaller farms are working in clandestine areas, then the dimensions of mining corporations 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 vital to help the Bitcoin community on this approach? “Bitcoin mining is the inspiration of a brand new decentralized 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 wished to put in writing this text and get an inside take from people concerned in managing these machines.
On the subject of reporting on mining, most of what’s usually parroted in mainstream media entails the alleged large vitality utilization of Bitcoin miners. The idea follows that utilizing a lot vitality needs to be unhealthy as a result of it simply is. However is there extra to the story?
Berghuijs introduced up a very good level concerning 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 ends in a loss? That is the place Bitcoin miners will be of nice use; you may have 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 affect, 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
Primarily based within the United Arab Emirates, Phoenix Group “consists of 29 distinctive corporations working in 5 distinct verticals.” Somewhat than being a single firm that operates a number of Bitcoin mining farms, Phoenix Group’s portfolio of corporations supplies providers 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 know-how and modern strategies to maximise effectivity and reduce environmental affect. Our mining and internet hosting providers, 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 entails “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 affect on native communities, Bijan famous that the corporate’s “mining services create job alternatives and contribute to native economies. We additionally interact in neighborhood growth initiatives, supporting academic and technological developments to foster a optimistic and inclusive surroundings.”
“By optimizing our vitality utilization and incorporating renewable sources, we contribute to the steadiness and sustainability of {the electrical} grid,” Bijan stated on the affect 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 gentle – its energy supply is predicated solely on sufficient kids believing in it. And sadly what’s actual is that its development might single-handedly push world temperatures above the tipping level of two°C. #Bitcoin #Mining #ClimateChange pic.twitter.com/ZyPsuKdXEI
— Invoice Maher (@billmaher) Might 1, 2021
“Folks have it backward by way of 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 come back in and begin mining Bitcoin someplace the place it is not economical for them. There must be an incentive there. And often, that incentive is extra vitality. The actual fact of the matter is to have dependable vitality, it’s a must 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 optimistic for the vitality {industry} general.”
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 the earth as of now. The vitality we use is all 100% from sustainable sources: suppose hydro, nuclear, and photo voltaic.”
These three mining corporations characterize a various set of enterprise fashions, and so they function in numerous geographical jurisdictions. All of them profit native economies, communities, and ecosystems.
Let this text serve for instance to those that decry Bitcoin mining as something however a web profit to society.
