Innovations in chipset manufacturing have helped reduce the operational costs of Bitcoin mining, but a report from Arcane reveals the market's potential to transform the energy industry.
The flexibility behind running Bitcoin (BTC) mining operations may be vital to solving the real world problems holding back the energy industry, the Arcane research suggests.
One of the biggest concerns authorities have when it comes to mainstreaming Bitcoin is energy needs. Although innovations in chipset manufacturing have helped to lower the operational costs of Bitcoin mining, there is still much potential improvement, according to Arcane.
Because of its low response costs, Bitcoin mining complements the growth of wind and solar power grids, which often produce unstable and uncontrollable energy.
Bitcoin mining is not only flexible with respect to grid demand, it can also help solve problems with gas flaring - the process of burning natural gas in oil production.
Arcane emphasizes that by taking advantage of the modularity and portability of Bitcoin platforms, miners can set up operations alongside oil wells, reasoning that "per €1,000 investment, a Bitcoin mining system reduces emissions of 6.32 tons of CO2 equivalents per year, compared to 1.3 for wind and 0.98 for solar."
Bitcoin mining can further help the energy industry by reusing its byproduct - heat - to heat homes, industries and other applications during the coming winter. It is important to note that heating is responsible for about 40% of the world's CO2 emissions.
Reusing heat from Bitcoin mining offers several benefits, including operational subsidies and lower heating costs.
The importance of the above research comes at a time when the Eurozone has reached a record 9.1% inflation rate amidst a gas and energy crisis.