After all, bitcoin mining does give a unique and immediate economic outlet for this surplus renewable energy. Now it’s coming under increasing fire for its exorbitant energy use, hardware requirements and environmental effect. Research and best practices play a role, but researchers and experts alike are increasingly calling for holistic strategies that better recognize these challenges. Much attention has been drawn to the long-term sustainability and genuine green merits of utilizing surplus renewable energy to mine bitcoin.

The heavy energy use of bitcoin mining is the main focus of criticism. Further, the industry’s dependence on highly specialized hardware leads to massive e-waste. Economists at Germany’s Witten/Herdecke University have suggested global pricing approaches. Collectively, these strategies help reduce both the substantial energy usage and e-waste dangers posed by bitcoin mining.

As experts at the Bulletin of the Atomic Scientists have warned, that would be a dangerous oversimplification. They push back against the argument that overabundant, renewable energy should be used for bitcoin mining. They contend that the market dynamics at play in the bitcoin mining market are overlooked in these types of proposals.

"A close look at these bitcoin-is-climate-friendly claims shows they are short-sighted and ill-founded." - Bulletin of the Atomic Scientists

As renewable energy advocate and former T4America media guru Dan Drolette wrote in a great LinkedIn post, it’s short-lived economic gains.

"Bitcoin mining provides a temporary economic use for surplus renewable energy. But it reduces the incentives to invest in the infrastructure that could make this energy more accessible — one of the key roadblocks to renewables." - Dan Drolette

Drolette further warns that investing our future energy economy in bitcoin mining could disincentivize investment in a more sustainable energy infrastructure. Our Bulletin’s experts strongly agree — calling for a more detailed appreciation of the exceedingly complicated and volatile market.

The international nature of bitcoin mining adds another dimension to the problem. It is necessary. Agreeing with the researchers from Witten/Herdecke University, global pricing strategies are needed. These regulatory strategies are appropriate and effective to address the environmental harms from bitcoin mining.

"Our model shows that while surplus energy can lower the network's CO2 emissions, it simultaneously incentivizes increased mining activity, leading to greater electronic waste, which may offset environmental gains," - Witten/Herdecke University Researchers

"Bitcoin mining, however, creates counterincentives by offering short-term profits on surplus energy," - Witten/Herdecke University Researchers