Hut 8 CEO Jaime Leverton spoke at the Davos Crypto Conference in Jan 2023 about the crypto industry’s unpredictable growth and its impact on Bitcoin mining, according to a report from Feb 21.
Leverton says 2022 had a tumultuous Bitcoin mining sector with a high hash rate, low values, and an energy crisis.
The sector’s strong bull market led 20+ mining firms to go public, but it now faces a challenging phase. Only North America had about 40 publicly listed Bitcoin mining businesses at one point.
Leverton emphasized that Hut 8 joined Nasdaq in 2022 after entering the Canadian market in 2018. The CEO added that the 2021 cryptocurrency bull run brought large money inflows into digital mining assets, raising leverage.
Bitcoin Mining Potential For A Fascinating Discussion
Leverton claimed the industry experienced a significant shake-up, leading to failed leveraged companies, sector consolidation, and diversified portfolios for businesses.
Notwithstanding the volatility, she thinks the industry should be having a fascinating discussion about the potential of Bitcoin mining.
Leverton helped found the Bitcoin Mining Council. The council’s study found that 58.9% of bitcoin energy comes from renewable sources, and the percentage of renewable energy used by bitcoin is improving every quarter.
However, Leverton highlights BTC mining’s remote operability, utilizing waste energy without transmission connections in hard-to-reach areas.
She also mentioned the emergence of mining activities in rural African communities, which are increasingly becoming self-sufficient. She saw this as one of the most exciting developments in the mining industry in 2023 and 2024.
Leverton believes that BTC mining could drive innovation in renewable energy. Despite the ongoing debate, he sees potential for positive contributions by the crypto industry, which could lead to significant advancements in sustainable energy solutions.
As per her, Bitcoin miners use methane, flare gas, and landfills as eco-friendly energy, preventing carbon emissions.
Related Reading | Coinbase And Kraken’s Staking Models Differ Fundamentally: Legal Expert
However, Leverton is optimistic about Bitcoin mining amid industry turbulence and sees potential for renewable energy sector benefits.
This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.