Let’s make a distinction. Consuming energy is not bad for the environment. It is the energy, not its consumption, that is harmful to the environment when it comes from nonrenewable sources. For example, consuming solar energy has no impact on the environment.

If the real problem is energy production from fossil sources (coal, oil, and gas) we should solve this problem and not reverse it on energy consumption. Moreover, deciding whether a certain energy use is right or wrong is a subjective factor, for some it is for others it is not. Deciding it for everyone would be a dictatorial decision. Therefore it is much better and democratic to act on the possible consequences of non-clean energy production, such as CO2 emissions, on which the Kyoto Protocol has set quotas for each country. In addition, some countries have decided to apply the same principles of the Protocol within their national territory by extending it to the private sector as well.

Unlike other ways of consuming energy, Bitcoin has the big advantage that it can be “mined”, meaning produced, anywhere and also directly in the place where the energy is generated. Hence it’s extremely useful for absorbing excess energy from renewable energy plants (wind, solar, hydroelectric) that typically cannot lower their level of production nor they can sell the excess energy far from the place where it was produced because transporting the energy causes heavy waste through dissipation.

For this reason, in the past these plants were often built undersized, basically meeting only local demand at the time but then soon becoming insufficient, especially in rapidly expanding countries. Today, on the other hand, it is much more economically viable to build larger renewable energy plants right away that can meet the growing energy demand of a growing country, because in the meantime the excess energy will still be monetized by being converted into a store of digital value such as Bitcoin.

To confirm that Bitcoin well suits this use, a research conducted by Coinshares revealed that as much as 74% of the energy consumed by Bitcoin comes from renewable sources. This is a very high percentage when considering that renewable energy accounts for only 28% of the world’s total energy production.

Bitcoin therefore constitutes an important element in enabling the growth of global renewable energy production, encouraging the construction of larger plants, especially in those countries where energy demand is lower.

Image Credits: Yegor Petrov