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Deutsche Telekom, Europe’s largest telecommunications provider, announced that the company will mine Bitcoin through its subsidiary, MMS using excess energy from renewable sources. MMS said that it will collaborate with Bankhaus Metzler to mine Bitcoin and at the same time stabilize Germany’s fluctuating renewable energy output.
This is good news for people who are pushing for adoption of Bitcoin and cryptocurrency in general. This was announced on November 4, a week after Bitcoin white paper celebrated its 16th anniversary.
A Win-Win Situation
Due to its high energy consumption and its impact on the environment, there are negative sentiments to Bitcoin mining. Deutsche Telekom's strategy is to utilize unused renewable energy as a result of inadequate storage solutions. Oliver Nyderle, Head of Digital Trust & Web3 Infrastructure at MMS, noted that the project offers a way to convert excess energy into digital assets. Thus it will also benefit the solar and wind energy producers who have surplus energy. Furthermore, Bankhaus Metzler's involvement shows broader interest in blockchain applications beyond classic finance . According to Hendrik König, Head of the Digital Assets Office at Bankhaus Metzler, his project aligns with the bank's strategy to adopt blockchain technology.
This is not the first time Deutsche Telekom is involved in cryptocurrency mining as MMS is already supporting a variety of decentralized protocols since 2020. On the other hand, this may also pave the way for other companies to follow a similar strategy thus hastening adoption of crypto.
Germany to Buy Bitcoin for Reserves?
The project also comes after reports that Germany is planning to buy Bitcoin for future reserves . This is similar to strategies of other countries like El Salvador and Bhutan. Donald Trump, if elected also plans for the US to hold Bitcoin as reserves. Further, there are sectors in Germany that's pushing for Bitcoin adoption. Last August, the Bitcoin Federal Association (BTCBV) was formed .
Other companies in the Germany are starting to adopt Bitcoin. Samara AG announced in October to buy €30 million worth of BTC. Commerzbank also partnered with Deutsche Borse’s Crypto Finance to offer its customers Bitcoin and Ethereum trading services.
Effect on BTC Price
Currently, Bitcoin is testing its all time high. A lot are expecting that this will be broken soon and it may reach a new high of over $100k by 2025. Altcoins holders are also anticipating this move as it will also increase the prices alts as we have seen in previous BTC bullruns.
Posted Using InLeo Alpha