{"id":540462,"date":"2023-01-18T16:50:04","date_gmt":"2023-01-18T13:50:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-miner-explains-how-bitcoin-mining-stabilizes-grids\/"},"modified":"2023-01-18T16:50:04","modified_gmt":"2023-01-18T13:50:04","slug":"crypto-miner-explains-how-bitcoin-mining-stabilizes-grids","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-miner-explains-how-bitcoin-mining-stabilizes-grids\/","title":{"rendered":"# Crypto miner explains how Bitcoin mining stabilizes grids"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2310d4b6b60\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2310d4b6b60\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-miner-explains-how-bitcoin-mining-stabilizes-grids\/#%E2%80%9D_Crypto_miner_explains_how_Bitcoin_mining_stabilizes_grids_%E2%80%9C\" >&#8221; Crypto miner explains how Bitcoin mining stabilizes grids &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_miner_explains_how_Bitcoin_mining_stabilizes_grids_%E2%80%9C\"><\/span>&#8221; Crypto miner explains how Bitcoin mining stabilizes grids &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>2022 was \u201cthe perfect storm\u201d for Bitcoin (BTC) miners, according to Jaime Leverton, CEO of Hut8 mining, one of the largest crypto miners and digital asset experts in the space.\u00a0<\/p>\n<p>Leverton sat down with Gareth Jenkinson, senior reporter at Cointelegraph, in an interview at the World Economic Forum in Davos, Switzerland. Topics included were the 2022 bear market, Web3 diversification and, crucially, Bitcoin\u2019s growing positive impact on the environment and broader economy. Leverton shared that 2022 was a turbulent year for miners:<\/p>\n<blockquote><p>\u201cObviously depressed Bitcoin prices, global hashrate continues to hit all-time highs and then an energy crisis is thrown in the mix. So it&#8217;s certainly been a challenging time within the mining industry in particular.\u201d<\/p><\/blockquote>\n<p>Bitcoin hash rate, the ease at which miners can find a new block on the Bitcoin time chain and receive the block reward, has climbed higher in recent months. That\u2019s despite the Bitcoin price bobbing below $20,000. Mining profitability plunged as the hash difficulty surged. As a result, there were several Bitcoin and crypto miner casualties throughout 2022. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/de9aa84b-9c61-4ccd-a398-51cd69cda49a.png\"><figcaption style=\"text-align: center;\">Hut 8 Bitcoin Mining Corp since Jan 2018. Source: Bitcointreasuries.net<\/figcaption><\/figure>\n<p>Leverton explained that a diversified strategy coupled with a successful M&amp;A plan helped stave off insolvency risks for Hut 8, one of the world\u2019s largest publicly traded Bitcoin and crypto mining companies.<\/p>\n<p>The group recently spun up a \u201cBitcoin and mining repair facility for customers in across Canada and Northern Europe.&#8221; Meanwhile, a merger led to the purchase of \u201cfive enterprise-grade data centers and the associated business.\u201d Leverton highlighted that this move attempts to fill a gap in the market for digital infrastructure providers in the Web3 space:<\/p>\n<blockquote><p>\u201cThey tend to be really dependent on the traditional Web two hyperscalers as they, as they try to build out these decentralized platforms. And obviously, when you&#8217;re building a decentralized network, you don&#8217;t want to do that in, in centralized infrastructure.\u201d<\/p><\/blockquote>\n<p>Web3, once a buzzword in the crypto space, has since become a hotly-tipped trend for 2023, attracting 10-figure-plus investments from Hong Kong to Abu Dhabi.\u00a0The entrance of Hut 8 into Web3 could usher more Bitcoin-only companies to consider opportunities in the Web3 space.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/3bad096f-ec30-404c-acc5-55247bbd957b.png\"><figcaption style=\"text-align: center;\">Hut 8 Mining Corp&#8217;s holdings. They are the largest Canadian miner and fourth worldwide among publicly traded companies. Source: BitcoinTreasuries.net<\/figcaption><\/figure>\n<p>The interview concluded with an astute discussion of Bitcoin mining and its role in protecting the environment. Leverton is a founding member of the Bitcoin Mining Council, a group engaged in dispelling the misinformation surrounding Bitcoin mining and \u201ctackle some of the misinformation that was coming out around Bitcoin&#8217;s energy use; the sources of energy.\u201d<\/p>\n<p>Leverton explained that Bitcoin\u2019s transparency could in fact be its Achilles heel: <\/p>\n<blockquote><p>\u201cPart of the challenge we have is Bitcoin&#8217;s energy use is so transparent. Unlike every other industry in the world, where their energy consumption is opaque. With respect to Bitcoin mining, you can see the energy produced because, essentially Bitcoin is digitized\u201d<\/p><\/blockquote>\n<p>In contrast, it is a Sisyphean task to quantify the entire energy output of banking or traditional finance, although it hasn\u2019t stopped some Bitcoin advocates from trying. In a recent interview with cryptographer Michel Khazzaka, he estimates that Bitcoin uses at least 56 times less energy than banking.<\/p>\n<p><strong><em>Related:\u00a0Seven times Bitcoin miners made the world a better place<\/em><\/strong><\/p>\n<p>Leverton explains that there could be a disconnect between Bitcoin mining and its positive impact on both the environment and the economy. \u201cIt starts with education,\u201d she explained.\u00a0A native Canadian, Leverton tees up an example of how Bitcoin mining creates jobs, stimulates the economy and even provides tax receipts in a small city in Alberta Province.<\/p>\n<blockquote><p>\u201cWe\u2019re their largest energy customer, their largest taxpayer, and a key provider of tech, labor, and in some cases, we also want to talk about joint curtailment with the city of Medicine Hat.\u201d<\/p><\/blockquote>\n<p>Furthermore, Bitcoin mining can help to stabilize grids. Texas recently tinkered with the idea of using software to further balance the supply and demand of electricity to its grid using Bitcoin miners. Similar to Texas, Canada also endures temperature extremes. The wild variations require expert grid balancing. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/50b93d7e-71d1-41b9-a62e-ead2bf455a2e.png\"><figcaption style=\"text-align: center;\">Snowstorms in Alberta. Source: CBC.CA<\/figcaption><\/figure>\n<p>Leverton explains how Bitcoin mining can support the grid in Medicine Hat, further example of Bitcoin mining&#8217;s role in supporting environmental efficiency:\u00a0<\/p>\n<blockquote><p>\u201cAnd in whatever increment, we can take the entire 62 megawatts down and feed the grid if it&#8217;s during a snowstorm, any type of peak demand activity, we can power down and feed the entire amount or as little as half a megawatt.\u201d<\/p><\/blockquote>\n<p>Crucially, conversations and educational drives among policymakers might be made easier given that Bitcoin miners are now the largest taxpayers in the region where Hut 8 operates. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-miner-explains-how-bitcoin-mining-stabilizes-grids\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto miner explains how Bitcoin mining stabilizes grids &#8220; 2022 was \u201cthe perfect storm\u201d for Bitcoin (BTC) miners, according to Jaime Leverton, CEO of Hut8 mining, one of the largest crypto miners and digital asset experts in the space.\u00a0 Leverton sat down with Gareth Jenkinson, senior reporter at Cointelegraph, in an interview at the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":540463,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/aa40f32c-261b-4ba1-ba09-b75816792355.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74989,75042,93542,79671,117,22974,90812],"class_list":["post-540462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-mining","tag-mining","tag-web3","tag-world-economic-forum","tag-business","tag-canada","tag-davos"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=540462"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540462\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/540463"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=540462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=540462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=540462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}