Name: Is crypto environmentally sustainable?
Uploaded: 2021-07-28
Duration: 6 min 26 s
Description: Companies like Bitfarms are showing the possibilities of a greener crypto industry.

Companies like Bitfarms are showing the possibilities of a greener crypto industry.

Is crypto environmentally sustainable?

Fortune_Crypto

cryptocurrencies are monies that are privately issued, They're not issued by central banks the way dollars or euros are and they don't go through the banking system. The way it's produced is that what they call miners generate Electrical codes. The more computers you have, the more computing power that you have, the more Bitcoin you in its that simple, there's nothing skillful about the game. It's strictly a matter of having tons of computers all stacked up in these warehouses running 24/7, which is the only way you make money, they gotta run day and night. It's completely related to the percentage of the hash power that you have. That's a Bitcoin miner, if you have 5% of the hash rate power, 5% of the computing power, you get 5% of the Bitcoin. So there's a huge incentive when the price is high just to keep on buying more and more and more computers. And then if the cost of energy is fairly low and the price is high, you can make tons of money just running hashes on Bitcoin and that's the case today. These Bitcoin miners are making lots of money Even though the price is down by 50%. But these countries that attract a lot of mining, they often also have goals for carbon emissions and when they want to cut back on excess-carbon emissions. Getting new minds in is not the way to do it. So this is a battle that's going to play out and it's also dependent on the price of Bitcoin. We've got Kathy would saying it's going to go to 300,000 and these predictions of much, much higher prices And certainly the fans expect, I think that this is just a temporary downturn going to 30,000 or so. If we see that beginning to happen and the price doubles, the carbon footprints, going to double to Bitcoin ether, Another popular crypto currency. They are in the red this morning, traders focused on a growing crackdown that's happening in china china is intensifying its crackdown on Cryptocurrency china's crackdown broadly on crypto. Bitcoin moguls in china could be relocating to the United States. The only major green source of Bitcoin mining was in china and it was the six months a year when the northern miners would go south relocate same machines and mind with hydro. That's gone all of a sudden. The biggest source of green mining disappeared. There are many miners outside of china that were incumbents. In other words, they never stopped operating. A great example is bit farms, which is the largest hydro powered minor in Quebec province and in Quebec province, 99.9% of all energy for all purposes. For businesses for home heating is generated with hydro. There was a situation well over 100 years ago as this province was developing with iron ore mining, logging, and heavy industry that they powered all of that industry with hydropower, dams and hydropower. Over time, a lot of those industries have either exported out to third world countries or developing nations uh as well as become, you know, more efficient uh, in their energy use or scale down their production dramatically. But the hydro electric dams still remain there. What we do is we're taking that hydro electric power that all excess power that there's no other industrial use case for and were monetizing it and we're using that to produce Bitcoins. So every single watt kilowatt to megawatt that we're using, It's all power that's being produced historically for heavy industry, that's now being used for the Bitcoin mining industry. So it's very, very green and it's very, very profitable. Now, it was very profitable prior to the china shut down. But china shutdown made it much, much more profitable because its market share essentially doubled. In other words, given how much power it had since half the world's power went off line. All of a sudden it had twice as much power related to the entire market. So bit farms is making much more money than it was before. So it's an example of how profitable Bitcoin mining is for those incumbent miners that didn't have to shut down because so much of the capacity went offline in china that they ended up with the same amount of computing power having twice as much Bitcoin going to them. Well, I think, you know, recently the, the talk about the environment and the pressure on the environment is forcing more companies to do what we do and you know, have this this creator percentage of it in their portfolio. We do tend to leave the space in that I were the largest publicly traded all Green Bitcoin mining company in the world. And so far today we've mined over 11,500 bitcoins with green hydro electric, hydroelectric. I I think this is going to be the trend rolling forward whether or not that can be accomplished in 5, 10, 15 years. I think it's anybody's guess. But the incentives are there for people to develop long term, long lasting relationships with power companies and power producers. And it's easier to fix the economics on renewable power source than it is on one that has appeal input. So for hydropower, you know, the hydropower and geothermal in particular, the two best renewable energy sources. The primary cost is in the context in order to build the facility. and there's very little operating expense once you have the facility up and it's running, the only way that you can produce Bitcoin is by mining it and using a lot of electricity. So that's not going to go away. I don't see that. Bitcoin can move to a model where it uses a lot less energy unless it just goes to renewables and that really hasn't happened much. But you have independent companies that want to make money and more money is in very cheap energy. And the world is a highly energy competitive place where you have a lot of nations mainly powered on coal and natural gas that are going to be competing for these miners. So they'd have to voluntarily make less money and go to venues where they might have to pay more to use green energy because their machines wouldn't be running 24 7. I don't know that they're likely to do that right there, profit maximize ear's and they're going to keep on being profit maximize Urz Yeah.