- Renewable energy sources often suffer from excess energy production at certain times.
- This extra energy could be used to mine cryptocurrencies and create a profit.
- This would generate extra revenue and drive investment to renewable energy sources.
Share this article
ARK Investment Management published a report rejecting the well-known narrative of Bitcoin’s heavy environmental impact.
Bitcoin: A Battery for Renewable Energies?
One of the primary criticisms against Bitcoin is its negative ecological impact. The amount of electricity needed to mine BTC, for instance, is enormous.
The Cambridge Center for Alternative Finance estimates Bitcoin’s power consumption to be around 113.88 TWh per year. Put otherwise; Bitcoin consumes nearly .5% of the world’s total electricity needs.
This data, coupled with growing worries around climate change, give critics ample firepower to level at the leading cryptocurrency.
Yesterday, however, Ark Investment, a fast-growing investment firm with strong ties to crypto, strongly disagrees.
In a recent report titled “Solar + Battery + Bitcoin Mining,” Ark researchers write in their report:
“A world with bitcoin is a world that, at equilibrium, generates more electricity from renewable carbon-free sources.”
Ark has been quite active both directly and indirectly in cryptocurrencies. The firm has actively invested in Grayscale’s Bitcoin shares and was a large buyer of Coinbase shares shortly after its listing. The ARKK Innovation ETF also offers investors exposure to companies like Tesla and Square, both of which hold Bitcoin on their balance sheets.
Thus, the report is backed by clear financial incentives. And to protect these incentives, the research team has gone as far as to describe Bitcoin as an “economic battery.”
Imagine two identical solar energy farms. During the day, they both produce a surplus of energy. At night, the demand for energy spikes…