Block Payments and Blockstream have teamed up with Tesla to develop a solar-powered Bitcoin mining plant in Texas. Bitcoin has been the world’s largest and most well-known cryptocurrency.
Although it has frequently come under fire from environmentalists for purported environmental harm.
Not only does Bitcoin mining consume a lot of electricity, but Bitcoin transactions are also reported to consume a lot of power. Given Bitcoin’s environmental effect, supporters believe that solar-powered mining operations will help offset part of that carbon footprint.
Tesla is apparently investing heavily in Bitcoin, with some estimates putting the figure as high as $1.5 billion.
Tesla also began taking Bitcoin payments for new cars last year, however, that option was quickly removed due to worries about Bitcoin’s environmental effect.
Musk, on the other hand, is a huge supporter of Dogecoin, and Tesla accepts the memecoin as payment for some items. Musk has also stated that if mining is done using sustainable energy, Tesla may reconsider accepting Bitcoin payments in the future.
With environmental campaigners relentlessly pressuring crypto firms to lessen Bitcoin’s negative environmental effect, some are now attempting to mine the cryptocurrency using renewable energy.
As part of the plan, a joint-venture Bitcoin mining project led by blockchain startup Blockstream and payments business Block has announced a collaboration with Tesla to launch a huge zero-emission Bitcoin mining facility powered entirely by solar energy.
According to a press statement, Tesla Solar will provide the solar infrastructure, while Tesla Megapack will provide the energy storage options.
Bitcoin Mining Open Source Solar Powered By Tesla
The new facility, which will host open-source Bitcoin mining operations powered by a 3.8 Megawatt (MW) Tesla Solar PV array and 12 Megawatt-hours (MWh) Tesla Megapack batteries, began construction this week.
The factory is scheduled to be finished later this year. Once operational, a public dashboard will display power output, Bitcoin mined, as well as solar and storage data points.
Bitcoin mining consumes more electricity than several developed nations, including the Netherlands, according to the Cambridge Bitcoin Electricity Consumption Index.
Not only that, but Bitcoin transactions require vast amounts of energy, with each transaction consuming an estimated 2,292.5 kilowatt-hours of electricity, which is enough to run an average US family for 78 days.
As a result, the Texas-based sustainable Bitcoin mining program led by Tesla, Block, and Blockstream is a positive development.
One that, according to Blockstream CEO and co-founder Adam Black, would go a long way toward establishing that cryptocurrencies can support “zero-emission power infrastructure and drive economic prosperity for the future.”