The cryptocurrency sector might be going through a downturn at this point but the popularity of crypto mining remains high among many companies and one of the latest companies to have entered that space is Gaensel Energy Group Inc (OTCMKTS:GEGR).
The company is involved in a wide range of businesses starting from biotech, virtual reality, and retail coffee to commodities, technology, and health among others. Back on May 25 this year the company announced that it signed a memorandum of understanding pertaining to the acquisition of Idroelettrica Torrente Otro S.r.l. Idroelettrica is a hydropower plant firm and is part of Gaensel’s wider plan to get into the potentially lucrative cryptocurrency mining business.
Crypto mining has often been criticized for taking up too much energy and for being bad for the environment. Hence, Gaensel has decided to acquire Idroelettrica so that it can deploy green energy for the purposes of crypto mining.
At this point in time, hydropower is regarded as one of the more effective renewable forms of energy. However, that is not all. It is also well known for being cost-effective and hence, this particular move from the Gaensel is an important one for Gaensel.
The deployment of green energy is of major importance in the case of crypto mining and in order to get a better understanding of the move, one needs to remember how the meltdown in the crypto space actually started recently.
Last month, the founder of Tesla Elon Musk had tweeted that due to environmental concerns, his company was no longer going to accept Bitcoin payments. His concerns are not unfounded considering the fact that a report from Bank of America in March this year had stated that the carbon footprint from worldwide Bitcoin mining operation soared to 40 million tons.
That makes Bitcoin and many other cryptocurrencies like Ethereum, Litecoin, and Dogecoin major pollutants. As a matter of fact, the carbon footprint of Bitcoin alone could be compared to that of major airlines. Hence, the decision from Gaensel to deploy green energy is a highly prudent one and could change the tide for Bitcoin at a global level if other miners go in the same direction.
The proof of work that is used for mining Bitcoin consumes an enormous amount of power and has given rise to legitimate concerns about the environmental impact. However, this move from Gaensel could actually be a move in a fresh new direction and could make the company a pioneer among crypto miners.