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How green is your bitcoin mining pool? 10 years ago, few people cared about Bitcoin’s energy footprint. But as the value of BTC and with it the hashrate used to secure the network has soared, so have the complaints about its energy consumption.
Modern day miners are incentivized to seek low-cost renewable energy sources, primarily to ensure they can mine profitably, but also to keep the environmental lobby off their backs. PEGA Pool, a new mining pool, has now launched in open beta and it’s making overtures at the green brigade. Through tree planting to offset carbon caused by mining, PEGA Pool claims to be one of the most environmentally-friendly solutions of its kind.
Bitcoin: The Good, The Bad, and the Energy Hungry
Bitcoin mining, the process of verifying transactions on the Bitcoin network and adding them to the blockchain, requires large amounts of computational power and energy. This has both positive and negative consequences.
On the one hand, the mining process helps maintain the decentralization of the Bitcoin network, making it more resistant to censorship and manipulation. Miners are incentivized with newly minted bitcoins for their work, providing an economic incentive for people to participate in the network. But there are also downsides to this system.
Bitcoin mining is an energy-intensive process, consuming significant amounts of electricity and contributing to carbon emissions. To reduce its environmental impact, the industry has begun to adopt carbon offsetting, where emissions from bitcoin mining are offset by investments in renewable energy or carbon capture technologies. This approach helps to mitigate the environmental impact of mining while still allowing the network to operate.
Carbon offsetting, such as that offered by PEGA Pool, provides a potential solution to reducing the environmental impact of mining. Nevertheless, it is important for the industry to continue to seek ways to increase energy efficiency and reduce emissions. PEGA currently claims to have a pool hashrate of 1.9 EH per second and has mined a total of 116 blocks so far. Daily revenue stands at $0.073 per terahash based on current prices.
Mining Makes a Resurgence
Bitcoin miners struggled in 2022 as the falling price of the benchmark digital asset forced many to power down their machines. The increase in energy prices, particularly throughout Europe following the Russia-Ukraine war, further exacerbated the problem. With 2023 having seen BTC increase by some 40%, however, ASIC miners have finally been able to resume operations.
Much of the world’s bitcoin mining still originates in China, but there are also professional operations to be found anywhere in the world where the power is cheap and plentiful. PEGA Pool is based in Britain and is focused on attracting European miners seeking a pool that couples trust and security with impeccable green credentials. Despite only launching this month, it’s already the world’s 13th largest mining pool.
