Crypto mining can help energy volatility, Paradigm responds to policy onslaught
Paradigm argues that Bitcoin mining stabilizes energy grids by consuming cheap, excess power and returning it when needed.Summary
As U.S. lawmakers consider limiting data and mining facilities due to energy usage concerns, investment firm Paradigm released a report arguing that these worries are unfounded and that Bitcoin mining can actually help energy volatility. The report, citing data that the sector uses only about 0.23% of global energy, claims that the business model of mining necessitates using cheap, often off-peak renewable energy, which can then be returned to the grid when public demand is highest. Paradigm asserts that this behavior counter-balances average community energy consumption, bringing equilibrium rather than strain to the grid. This response comes amid increasing policy efforts, such as proposed legislation by Senators Blumenthal and Hawley and a moratorium pursuit in New York, aimed at restricting data centers, including crypto mining operations, due to fears of rising consumer electricity costs. Paradigm suggests that miners who utilize otherwise wasted energy or participate in grid control programs should be rewarded.
(Source：CoinDesk)