Wasted Energy Could Be Solved with Bitcoin

In a world where energy demand and efficiency are key issues, Bitcoin mining emerges as an innovative solution to utilize surplus energy that would otherwise go to waste.

Bevan Waite, a cryptocurrency expert and marketing director at Jan3, explained to La República how the strategic deployment of mining nodes could transform energy management in the United States and other parts of the world.

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The Energy Surplus Problem

In several regions, including the U.S. and other energy-producing nations, large amounts of energy cannot be efficiently stored or used due to distribution network limitations. This issue is particularly evident in renewable energy sources like hydro and wind power, where production does not always align with demand.

A notable case is Germany, where climatic events have led to electricity overproduction in certain areas while others face shortages. “If too much energy is pushed through the grid, it becomes a problem, and in many cases, that energy ends up being wasted,” Waite explained.

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This occurs because energy can only be transported up to a certain point before losing efficiency, and without proper storage, it must be discarded.

Bitcoin Mining as a Solution

Bitcoin mining can serve as an effective alternative to mitigate this waste by using surplus energy to power mining nodes strategically located near energy generation sites.

“When I say energy is wasted, I mean it is literally released without being utilized. With mining nodes, we can capture that excess and turn it into economic value,” the expert stated.

This model has already been implemented in places like Paraguay, where abundant hydroelectric energy enables Bitcoin mining projects without affecting local demand. In the U.S., the issue of intermittent renewable energy could also be mitigated with a distributed mining infrastructure that harnesses excess energy without adding stress to the grid.

Strategies for Implementing This Technology

One way the U.S. could adopt this strategy is through public-private partnerships to install mining infrastructure in regions with energy surpluses. In this model, private companies would build mining centers, while the government could benefit by receiving a share of the Bitcoin generated without investing public resources.

Another option is leasing state-owned land for mining projects that utilize surplus energy, particularly in hydroelectric regions or methane gas fields where gas flaring poses a significant environmental issue.

“Instead of wasting natural resources or causing ecological harm, we can convert that energy into Bitcoin and monetize it,” Waite noted.

Gold into Bitcoin

Beyond mining, Waite also mentioned the possibility of governments converting traditional assets, such as gold, into Bitcoin. If multiple countries liquidated part of their gold reserves to acquire Bitcoin, this could trigger a massive revaluation of the cryptocurrency and shift the paradigm of global reserve assets.

Another way to strengthen government-held Bitcoin reserves would be to accept payments in Bitcoin for fees and government services, allowing for accumulation without relying on taxpayer funds.