How Offsetting Carbon Emissions with PEGA Pool Could Save Bitcoin Mining
Since the price of Bitcoin began to rapidly rise almost a decade ago, Bitcoin miners have designed their digital computers to participate in its Proof-of-Work consensus mechanism. By providing computer systems that solve complex mathematical problems and help to verify new blocks, miners are rewarded in Bitcoin. While this cryptocurrency was increasing in value, miners were able to make a fortune from the practice.
By Marcus Henry
February 21st, 2023
Since then, Bitcoin mining has come under extreme scrutiny due to the environmental damage that it causes. Beyond that, miners are also moving away from the industry as profits fall and energy costs rise.
In this turbulent period, Bitcoin mining needs a major change if it’s going to stay afloat. PEGA Pool, a UK-based eco-friendly Bitcoin mining pool, is set to radically shift this industry. With a comprehensive mining architecture that provides access across the world, this environmentally-conscious pool could be the change that the industry’s been waiting for.
Let’s explore the fall of this industry, tracing exactly how PEGA Pool could have arrived at just the right moment to turn things around.
What Setbacks Have Cryptocurrency Miners Experienced?
Over the past 18 months, Bitcoin miners have run into issue after issue. With total revenues down almost 80% from the peak, many see this industry on the brink of complete collapse.
The first signs of panic were when China, the second-largest Bitcoin mining hub, banned cryptocurrency mining back in June of 2022. China’s relative Bitcoin production fell to 0%, cutting out a major player from the game. Citing concerns around the validity and social impact of a decentralized currency, their legislative action caused Bitcoin to tumble massively in value.
As demonstrated by the graph below, the sharp decline in the total market value of Bitcoin shaved off thousands of dollars of profit from every single Bitcoin mined. For many, this was a huge limiting factor, with the sheer amount of energy needed now barely allowing them to break even while mining.
Things then only got worse for Bitcoin miners. Across the globe, we’re currently facing an energy crisis. With oil, gas, and electricity prices all skyrocketing, people are having to pay more than ever before to power their devices. For Bitcoin miners, that need to use an extraordinary amount of energy to power their computers while they solve Bitcoin’s mathematical equations, this suddenly reduced profits even more.
Alongside with profits falling, the relative difficulty of mining a new Bitcoin block has been steadily increasing over the past few years. Currently, it’s at an all-time high. This means that Bitcoin mining is more energy intensive than it’s ever been before.
This, combined with the huge energy costs and low profits with Bitcoin’s below $20,000 value, has turned many away from the industry.
To make matters worse, Bitcoin and other cryptocurrency mining practices have recently been criticized by global media outlets. The University of Cambridge released a discussion around the energy consumption and CO2 emissions that Bitcoin mining produced. Their research revealed that Bitcoin consumes around 110 Terawatt Hours per year.
Put in other terms, that’s more than entire countries like Portugal or Sweden use in an entire year. With this energy consumption also comes major gas emissions, with Bitcoin producing nearly 50 million tonnes of CO2 per year at current production rates.
The industry is falling apart right before our eyes. Profits are at an all-time low, energy consumption is at an all-time high, and the public perception of the industry is causing more and more miners to move away from the industry as a whole.
How PEGA Pool Tackles the Issues with Bitcoin Mining
With public perception currently at rock bottom, governments, organizations, and even individuals within this decentralized space are turning their back on Bitcoin mining. The initial environmental concerns have been a major player in some political territories banning cryptocurrency, further harming the industry as a whole.
In order to get Bitcoin mining back on track, it has to address and overcome the environmental impact that it has. PEGA Pool acts as the solution to this problem, allowing Bitcoin miners to offset their carbon emissions while they mine. For every block mined by the pool, a small fee is taken by the platform. This fee is put into planting trees around the globe, helping to offset emissions in real time.
Although being based in the UK, PEGA Pool has servers around the world. With this in mind, miners have a huge incentive to start mining within their collective mining pool. By partnering with PEGA, they get access to lightning-fast throughput, helping them to drive profits back up.
With higher profits and a much smaller environmental impact, this is an eco-friendly platform that is a win-win for the industry. Miners are able to reclaim their high profits, working in a community to boost efficiency. And those that are worried about the environmental impacts have nothing to fear, with PEGA being able to radically reduce the impact of the industry.
PEGA Pool couldn’t have arrived at a better time. With profits circling the drain and the media publishing more studies on how much of a polluter the Bitcoin mining industry is, this entire sector was on the brink of collapse. PEGA’s early beta-testings have already become revolutionary in the industry, allowing people to offset emissions as they mine.
And, considering that PEGA Pool goes live for public access in the first quarter of 2023, the platform is ready to accept new miners. As it grows in usage and more miners flock to this system, it’ll create a snowball effect, helping to incentivize even more onboarding.
For miners, the crypto community, and the environment at large, PEGA Pool is revolutionary.