BlackRock, the world’s largest asset manager, is preparing for a scenario with a U. S. dollar crisis by considering Bitcoin. This is so given the fact that world financial markets are being exposed to issues of inflation, geopolitics and fluctuating currency. The fact that BlackRock has taken a position in Bitcoin shows that more and more individuals regard cryptocurrencies as an insurance policy against economic uncertainties.
One of the major reasons that proponents put forward in support of mainstream adoption of Bitcoin is the versatility of bitcoin in energy markets. As noted by Kennedy, the miners can flexibly balance the energy consumption depending on the rate fluctuation, a situation that could benefit the grid operators. The capacity to shut down during certain peak demand hours is still able to keep the grid stable while.
Kennedy also noted that Bitcoin miners engage in demand response programs in which they are rewarded for using less electricity during peak hours. These programs act as important ‘tools’ to manage power systems especially at a time the world is embracing the use of renewable energy resources. Additionally, Bitcoin mining offers energy producers a consistent revenue stream when energy demand is low, further supporting renewable energy adoption.
According to Kennedy, there is a trend indicating that most of the miners are shifting to renewable energy especially in the state of Texas. And with more than half the Bitcoin network already powered by renewable energy, the asset manager’s involvement in Bitcoin could help improve the environmental sustainability of financial systems.
Read CRYPTONEWSLAND onMoreover, bitcoin mining can be a substitute to more emitting natural gas peaker plants that are used during high electricity usage. In this case, Bitcoin mining is more environmentally friendly through the use of renewable energy and this resonates well with black rock’s investment plans.
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