Renewable energy and cryptocurrency: A dual approach to economic viability and environmental sustainability

One of the foremost challenges facing Bitcoin, as the most valuable cryptocurrency operating on a proof-of-work mechanism, is its substantial energy consumption and environmental impact. With the expansion of the Bitcoin market, mining has surged in popularity, particularly in countries where energy and monetary costs are comparatively low. This study aims to assess the impact of utilizing renewable energy from a photovoltaic system for Bitcoin mining, simulating a solar power plant with a 50.91-MW capacity alongside a corresponding Bitcoin mining operation in the United Arab Emirates. Economic evaluations were conducted using comprehensive, historically archived data to ensure results that closely mirror real-world scenarios. Additionally, for a more nuanced comparison, an economic assessment of selling the power plant's electricity to the grid was also performed, with the findings juxtaposed. The outcomes indicate that initiating such a system at the start of 2020 with an investment of approximately $42 million could recoup its costs in about 3.5 years. In contrast, selling electricity to the grid would extend the power plant's return on investment period to 8.1 years. Furthermore, the environmental evaluation revealed that adopting renewable solar energy for mining could avert the emission of around 50,000 tons of CO₂ annually.