The economic benefits of crypto mining will provide motivation for green energy innovations, says Mike Colyer
Mike Colyer, CEO of Foundry (the cryptocurrency mining arm of the Digital Currency Group), stated during the Crypto Mining Forum yesterday that Bitcoin mining will eventually compel the world to transition to renewable energy.
Colyer’s comments come amid the increased scrutiny of the crypto mining industry for its heavy energy consumption, with articles in the mainstream media even pointing out that the crypto industry uses more energy than some entire countries.
However, Colyer argued that the economic benefits of mining cryptocurrencies like Bitcoin will instigate major energy companies to restructure both capital and operations.
He further called Bitcoin mining a “great stabiliser” for the power grid and said that the technology has the potential to act as a “bridge between the current energy production and a world where 100% of our energy is produced from renewables.”
“Bitcoin mining provides a steady base load, and yet, it’s still intermittent to allow grids stability,” Colyer explained, adding that this creates a powerful economic dynamic for renewable energy products.
“Nation-states, they can’t sleep on this, and they’re going to find ways to take advantage of their natural resources to be involved in Bitcoin mining […] At some point, Bitcoin mining will look like a utility, and it’s going to be a part of critical infrastructure for countries,” Colyer said.
The executive argued that the technology with regards to crypto mining was already moving forward in the US. He cited the examples of lawmakers in Kentucky advocating for tax breaks for local crypto miners to enable them to compete with miners abroad, and Greenidge Generation, a Bitcoin mining company that operates their powerplant only during high demand hours.
The transition to green energy could take more than a decade, maybe even two decades, the CEO said, adding that Bitcoin will play a crucial role in the journey.
China leads the crypto mining industry with reports suggesting that more than 75% of Bitcoin mining occurs in the country. The Digital Currency Group has invested over $200 million to enable crypto miners in North America to compete with their counterparts in other countries, according to Colyer.
“Institutions have arrived. I can hardly keep up with the news every day of new Bitcoin mining companies. I’ve always thought the U.S. would be a leader in Bitcoin mining,” he added.