Cryptocurrency mining is a power-intensive process. Mining one cryptocurrency requires CPUs to solve sophisticated math problems computationally. Therefore, the process requires intensive energy consumption — which they suggest won’t be harmful if it’s coming from additional power that the ERCOT grid provides.
During the Texas Blockchain Summit in October, Cruz pointed that Bitcoin miners can turn off their mining rigs within seconds. This feature makes crypto mining highly beneficial during times when energy is needed to meet the electric grid’s demand.
“If you have a moment where you have a power shortage or a power crisis, whether it’s a freeze or some other natural disaster where power generation capacity goes down, that creates the capacity to instantaneously shift that energy to put it back on the grid,” Cruz said of the ability of bitcoin miners to shut down their operations within seconds.
But not all are convinced that bitcoin miners are the solution.
“Miners are a strain on the grid, not a help,” said Ben Hertz-Shargel of Wood Mackenzie, a provider of commercial intelligence for the world’s natural resources sector. Hertz-Shargel is concerned that bitcoin mining would only raise peak demand, ultimately adding stress to the system.
