How does proof of work mining impact the environment, power grids, energy independence, and renewables?

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The two most widely used blockchain consensus mechanisms—proof of work and proof of stake—are distinct systems with critical trade-offs. Bitcoin’s proof of work is energy intensive in order to forge a link to the physical world, affording greater security and fairness than proof of stake systems, which use significantly less energy.

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Proof of work mining has complex and dynamic effects on global energy systems. While mining uses substantial amounts of electricity—currently 0.18% of global energy—it is price-sensitive, interruptible, adjustable, and location-agnostic, which pairs well with intermittent renewable energy sources like wind and solar, as well as stranded sources of energy like waste methane.

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