It is common knowledge that cryptocurrency mining consumes a lot of energy. Residents of New York State recently sent a letter to the governor requesting that mining permits for crypto businesses be reconsidered. Greenidge Generating Station and Fortistar North Tonawanda are among the names on the list.
The petitioners also requested a statewide moratorium on proof-of-work (PoW) cryptocurrency mining. While the sector in New York is facing regulatory uncertainty, Stronghold Digital Mining, based in Pennsylvania, made its Nasdaq debut shortly after.
In contrast to environmental concerns, Stronghold’s CEO, Greg Beard, argued,
“Bitcoin mining is the most profitable use of that power right now.”
He made this statement because Stronghold claimed to be mining with waste coal. Beard explained in a recent interview with Nasdaq,
“Before 1975, it was legal and permissible to use good coal to generate electricity and steel.”
He went on to say that the process resulted in the marginal low-quality coal being dumped by the mines. As a result, he believes it is critical to clean up this waste. Beard also stated that the problem exists everywhere there is coal mining. He stated,
“In Pennsylvania, we are reclaiming and remediating a legacy problem from decades of coal mining.”
Having said that, Beard asserted that there are numerous challenges, citing the fact that some of these waste piles are “the size of about half of Central Park.” As a result, at this rate of cleanup, it will take another 30 years or so to complete the reclamation.
According to data, New York, Kentucky, Georgia, and Texas were attracting the most miners in the United States. While the migration was prompted by China’s crackdown on Bitcoin mining, there was another winner.
In addition, Kazakhstan, which has become the world’s second-largest bitcoin mining destination, has been rationing power due to power outages. According to a local report, crypto data centers consume 5 MW of power per hour. According to energy ministry estimates, this is equivalent to the monthly consumption of approximately 24 thousand medium-sized apartments.
In contrast to the United States, where other greener sources of energy are gradually replacing coal, Kazakhstan remains heavily reliant on coal and natural gas.
What are the alternatives to using “waste coal” in the face of massive energy demands?
Senator Ted Cruz stated at the October Blockchain Summit in Texas that Texas has “abundant energy.” He mentioned harnessing the power of wind and natural gas flared in West Texas. “We capture that gas instead of burning it,” he had said.
Having said that, the co-founder of JAI Energy recently stated in a tweet how BTC mining can benefit oil and gas producers.
O&G companies that mined Bitcoin with their natural gas on Sep 28 are up 45% on those molecules of gas they converted into Bitcoin. O&G companies that sold their gas down the line on Sep 28 haven’t even been paid by the Midstream group yet
— Ryan Leachman (@RG_Leachman) October 15, 2021