How could Bitcoin mining revolutionize agriculture?

(MENAFN- ARTSEO SEM SRL)

Bitcoin mining is important for the blockchain’s security because it prevents double-spending. Miners contribute to the transaction ledger by solving complex mathematical problems and adding blocks to the chain. Miners continuously update the decentralized blockchain ledger and are incentivized by the platform based on their productivity. 

However, there are many challenges with mining as well, especially from the energetic perspective. Since Bitcoin uses the proof-of-work mechanism, mining requires expensive and solid computational power to face the competition and make mining profitable. 

Unfortunately for miners, the reward also decreases every four years due to the halving. This process cuts the amount of new Bitcoin created by half, which boosts scarcity. While this is beneficial for investors, miners receive fewer rewards for the more input needed. Therefore, miners must adapt to the current Bitcoin price and upgrade their mining rigs. 

But what if we could power up Bitcoin mining and use the energy for something valuable in the real world? Bitcoin mining might have the potential to change agriculture. Here’s how. 

Why would Bitcoin help farmers? 

Inflation has heavily affected the agriculture industry in recent years, leading to numerous protests from farmers. Rising costs for machinery and seeds, as well as challenging taxing systems, make it more difficult for farmers to produce the same amount of food for the increasing population. 

The current economic system is considerably flawed. Governments do not know what to prioritize in terms of financial aid, making it more difficult to access local foods at affordable prices. That’s why farmers seek new alternatives for help, such as sustainable energy solutions. 

Therefore, farmers could use Bitcoin mining operations to access excess renewable energy for additional income. In the Netherlands, for example, a tulip farmer and a Bitcoin mining firm collaborate to use the heat from the mining rigs that are repurposed in their greenhouses. This way, the farmer doesn’t depend on natural gases, especially with rising prices, and the mining is already powered by solar energy, creating a cycle of reusing resources. 

Bitcoin could also be a better incentive system

Farmers struggle considerably with the financial side of the business. The government doesn’t usually do much to help them, but with Bitcoin-based loaning systems, farmers could invest more in their machinery and technologies to sustain their activities. 

Bitcoin and many other cryptocurrencies offer loan platforms for people to access funds by using their assets as collateral. This supports liquidity while lowering risk exposure to volatility. Lending and borrowing cryptocurrency are part of the decentralized finance industry, one of the fastest-growing crypto-based sectors. 

Cryptocurrency incentives can help farmers invest in their natural resources, from the land to the water and sunlight, so Bitcoin mining and loaning could support their development in a competitive and tough market. 

Bitcoin blockchain could improve the supply chain 

The supply chain management system often fails in agriculture because of inaccuracies, leading to massive financial losses and a lack of trust. Fragmented supply chains, logistic issues, and poor traceability also contribute to challenges for farmers and the agriculture industry, but blockchain could help with that. 

The best feature of this technology is traceability because everything introduced to the network cannot be modified or deleted, and every transaction is recorded automatically, so there are no chances of fraud. Using blockchain in farming helps record every step of the process, from the planting to the harvesting steps. At the same time, traceability is the most important when it comes to transportation because that’s where most of the product information is lost. 

Farmers need to build consumer trust, and blockchain can help sustain it. When paired with IoT systems, it could also offer opportunities for development to improve crop yield and reduce resource usage. 

Bitcoin mining enhances community development 

One of the best things about Bitcoin mining is that it includes communities with the same purpose. This is one of the many reasons why the community is so developed: miners, validators, and investors work together to create a better financial system for the world. 

Farmers could also benefit from this community since Bitcoin mining creates jobs and stimulates the local economy, which is beneficial for both farmers and citizens. Collaborating to create a digitalized but also efficient agricultural system fosters innovation in places we wouldn’t even think of. 

Numerous mining rigs in the US generate their energy from renewable resources, but China, Kazakhstan, and Canada also greatly contribute to this circular investment. 

Still, what are the challenges to Bitcoin mining? 

The technological complexity of Bitcoin mining might be an issue for companies because few centralized brands can truly capitalize on their power without affecting the environment. Many rigs still work with coal and similar resources that affect the local environment and contribute to climate change. 

On the other hand, several mining farms reported problems with noise pollution. Since all the fans used to cool down machines tend to be noisy, mining rigs must be placed at an adequate distance from houses and farms so as not to disturb the people. 

Unfortunately, the government's lack of vision makes it difficult for farmers and mining companies to collaborate since there’s no certainty regarding taxes and proper assignments. So, for the moment, both parties approach a testing system in which they approximate what would be best. That’s why there are such problems with noise pollution in North Texas, for example, where people report migraines and vertigo due to the continuous noise from rigs, so mining owners have to seek quieter cooling systems for their operations. 

What do you think a bout farmers using Bitcoin mining? 

Bitcoin mining is one of the most important activities that sustains cryptocurrency efficiency and safety. Through mining, the network is maintained, and there are no risks of double-spending. However, it consumes a lot of energy, which is detrimental to the environment. Luckily, there are solutions to reuse that energy in agriculture, where farmers can use the heat from the mining rigs to warm up their greenhouses. At the same time, farmers can access Bitcoin loans to invest in their machinery.

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