A good news that emerged from Credit Sussie report is that Bitcoin mining is unlikely to cause any environmental armageddon due to over-consumption of electricity.
The emergence of Bitcoin miners due to surge in its value has lead to a belief to have correlative effect on Bitcoin mining industry. The increased hashpower has awoke the environmental activist crying about hazards immense power consumption can do.
After last week’s report from Morgan Stanley stating that cryptocurrency miners can consume to about 14-terawatts-hours of electricity this year. That amounts up to 0.6% of consumption of global demand. Citing this report, Credit Sussie claimed that Bitcoin mining is unlikely to cause an “environmental armageddon”.
“This is a far cry from the power and environmental Armageddon that some have feared,” the Credit Suisse analysts, led by Michael Weinstein, wrote in this week’s report.”
The report also mentioned a similar situation that took place occurred during both marijuana growers and data center operators during high-power periods for these industries.
It is far-fetched that this industry will consume about 350-terawatts of electricity per year and be categorised as “high-consumption industry”. Rather the analysts anticipate that the mining industry could present electricity producers with a $5 billion “global annual revenue opportunity”. Again. That is far less that is $6 trillion consumption of electricity globally each year.
The chances are that with increase in demand, the users will come up with more electricity-efficient ways that can give competitive advantage as well.
The cryptocurrency mining will further mitigate in the regions will potential environment impact of this burgeoning industry.