Yesterday Tether announced its new project dedicated to sustainable Bitcoin mining.
The company says it understands the importance of energy in driving progress and enabling communities to flourish, which is why they have decided to harness the power of renewable energy to mine Bitcoin.
Tether wants to solve the Bitcoin mining problem
Indeed, Bitcoin mining has a problem that is still largely unresolved.
It is not so much the high power consumption, but the fact that much of the electricity consumed is still produced from polluting or unsustainable sources.
In theory, the energy consumption of Bitcoin mining could also be reduced, so much so that in the future, as a result of halving the BTC reward for miners, it is possible that there will spontaneously be a reduction, but for now it is still definitely high.
The policies that have been put in place to curb the non-renewable, non-polluting energy consumption of mining do not seem to have produced significant improvements, partly because either they have not been effective, like in China, or there aren’t any at all in many countries.
But the key point is not so much the reduction of mining’s energy consumption, in part because more consumption also means greater security for Bitcoin‘s blockchain, but the reduction of its environmental impact.
Bitcoin mining: the initiative of Tether
In fact, for quite some time now there have been many large miners working to minimize the consumption of non-renewable energy, increasingly preferring sustainable energy.
In the US, which is the country in the world that mines the most Bitcoin, there is even a specific association of miners dedicated to just that: replacing much of the non-renewable energy used for mining with sustainable energy.
This is where Tether‘s initiative fits right in, they have decided to invest resources in the production of sustainable energy to be used for Bitcoin mining operations in Uruguay, in partnership with a local licensed company.
In addition to investing in renewable energy sources, the company is also looking to expand its team by recruiting experts in the energy sector, partly because this project is described by the company as:
“a noteworthy milestone, where the realms of energy and cryptocurrency converge harmoniously.”
Although Uruguay seems like a rather peripheral area within the crypto sector, it is actually one of the world’s leaders in renewable energy, with as much as 94% of its electricity generation coming from renewable sources, and in particular wind and solar.
It is a small country with a population of less than 3.5 million, so it is easier to replace much of the non-renewable energy with green sources.
What’s more, the country is endowed with abundant natural resources, so it offers ideal conditions for renewable energy production, partly because it favors the creation of wind farms, solar parks and hydroelectric projects.
In addition, thanks to heavy investment in energy infrastructure, Uruguay can boast a robust and reliable grid system capable of meeting the needs of modern industry.
According to Tether, this scenario provides a solid foundation for the company’s platform to mine Bitcoin, ensuring efficient and sustainable operations.
Tether is the company that issues and manages the world’s largest stablecoin, USDT.
It has been making record profits lately, mainly due to rising interest rates in the US, which has increased the return on investment in US government bonds.
A portion of these profits is being invested by the company to strengthen its reserves to guarantee the over-collateralization of USDT, but part of it at this point seems to be going into developing the basic infrastructure of the crypto industry.
Bitcoin’s blockchain is the main starting point, and since it relies on mining Tether’s decision seems absolutely logical.
Moreover, it had already decided to invest in Bitcoin the reserves used to over-collateralize USDT, but even better is to invest them to mine BTC with renewable sources.
Tether’s CTO, Paolo Ardoino, stated:
“By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining.
Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network.
Tether is proud to spearhead a movement that combines cutting-edge technology, sustainable practices, and financial innovation.”