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| Tesla, Block, and Blockstream teaming up may provide the needed push for Bitcoin miners to mine in sustainable ways for the environment. Source: (Creative Commons License). |
Elon Musk is a huge fan of cryptocurrencies, personally owning a diversified portfolio of cryptos, most likely including dogecoin, which he often posts about on his social media account. However, it is no surprise that one of his companies is deeply involved in the digital currency scene. The latest foray is Tesla's collaboration with two other companies, Block (headed by Jack Dorsey) and Blockstream, to mine bitcoin using the sun's power.
Tesla has dabbled in cryptos before, announcing that the EV maker would accept payments online in crypto and bought up many cryptos. However, the company later announced it was scrapping the plan due to the environmental impact that Bitcoin had on the environment. However, Tesla is going into cryptos again, this time being more environmentally conscious of the effects it could sustain on the environment.
The trio of companies has now started constructing a bitcoin mine in Texas. The facility will be powered by solar panels and energy storage batteries made by Tesla. There are plans to install 3.8 megawatt PV cells and a 12 megawatt-hour Megapack. The battery pack will store power to account for the PV cell's lack to produce electricity when the sun goes down.
Bitcoin is projected onto various energy sources. Source: (Creative Commons License).The project is meant to be a proof of concept on how bitcoin can be mined using 100 percent renewable energy. Bitcoin mining is an energy-intensive activity and can significantly increase carbon emissions if the energy is sourced from fossil fuels.
The dashboard will be made public so that anybody can follow the metrics and the efficiency of their mining process.
There is a plan for a dashboard that will track the site's performance through the power output and total bitcoin produced. Later on, the dashboard will display solar and energy storage performance data as well. The dashboard will be made public so that anybody can follow the metrics and the efficiency of their mining process.
West Texas has been welcoming bitcoin miners in droves and will allow Texas to develop and build out its network of renewable energy. While sunlight and wind are abundant in the state, the best locations are concentrated in remote areas, giving no financial incentives to develop them. However, the arrival of miners, who do not mind these remote locations, has generated demand.
Tesla's project can serve as a template for how these renewable energy opportunities can be used to power crypto mining enterprises.