Tesla has just joined an initiative to mine Bitcoin with solar energy. This mining farm located in Texas aims to demonstrate the interest of cryptocurrency in the financing of renewable energies.
Tesla is partnering with Block, a startup founded by Twitter creator Jack Dorsey, and Blockstream, a leading cryptocurrency company, to set up a Bitcoin mining farm. According to information from our colleagues at CNBC, this mining farm located in Texas will rely exclusively on solar energy. Excluded from China, many miners have turned to Texas to set up their infrastructure.
This initiative responds to the many detractors of Bitcoin who accuse cryptocurrency of destroying the environment. The energy consumption of the Bitcoin network is regularly compared to that of a country. According to many environmental activists, including Greenpeace, cryptocurrency mining by proof of work or Proof of Work is an environmental disaster.
Read also: 19 million bitcoins have been mined, there are only 2 million left!
Mining Bitcoin with green energy is possible
However, it is possible to mine Bitcoin by relying on green and renewable energies. To prove it, the mining farm of Tesla, Block and Blockstream will be accessible in real time via a dashboard. “We said to ourselves, let’s prove it. Let’s have an open dashboard for people to play the game, and maybe that will inspire other people to participate”explains Adam Back, co-founder and CEO of Blockstream.
This online dashboard will continuously display information such as the number of bitcoins mined, energy production or power consumption. “This is a step to prove our thesis that Bitcoin mining can fund zero-emission power infrastructure and build economic growth for the future,” points out Adam Back, a leading figure in the cryptocurrency industry.
“By collaborating on this 100% solar-powered Bitcoin mining project with Blockstream, using Tesla’s solar and storage technology, we aim to further accelerate Bitcoin’s synergy with renewable energy,” a Block official tells CNBC. Obviously, it’s Tesla who will supply the solar panels used by the farm.
It is not surprising that Tesla decided to join this initiative. Last year, Elon Musk made several commitments to accompany Bitcoin towards green energies. The billionaire notably met with several Bitcoin miners based in North America to discuss it. Still convinced of the future of the digital currency, Elon Musk has pledged that Tesla will accept Bitcoin as a means of payment again as soon as “miners will use a reasonable amount of clean energy (around 50%)”.