HELENA, Mont.
In the world of bitcoin mining, access to cheap and reliable electricity is everything.
While it has yet to widely catch on as a method of payment, it has seen its popularity as a speculative investment surge despite volatility that can cause its price to swing wildly.
Computers connected to the bitcoin network race to solve complex mathematical calculations that verify the transactions, with the winner earning newly minted bitcoins as a reward.
When bitcoin was first invented it was possible to solve the puzzles using a regular home computer, but the technology was designed so problems become harder to solve as more miners work on them.
The Cambridge Bitcoin Electricity Consumption Index estimates bitcoin mining used about 109 terrawatt hours of electricity over the past year — close to the amount used in Virginia in 2020, according to the U.S.
In New York, Gov.
Some say the solution is to switch from proof-of-work verification to proof-of-stake verification, which is already used by some cryptocurrencies.
Marathon Digital is one of several companies pinning its hopes on tapping into excess renewable energy from solar and wind farms in Texas.
Companies argue that cryptocurrency mining can provide an economic incentive to build more renewable energy projects and help stabilize power grids.
Pennsylvania’s Department of Environmental Protection is a partner in the work, which uses relatively new technology to burn the waste coal more efficiently and with fewer emissions.