Reimagining Bitcoin Mining as a Virtual Energy Storage Mechanism in Grid Modernization: Enhancing Security, Sustainability, and Resilience of Smart Cities Against False Data Injection Cyberattacks

The increasing penetration of intermittent renewable energy demands innovative solutions to maintain grid stability, resilience, and security in the body of smart cities. This paper presents a novel framework that redefines Bitcoin mining as a form of virtual energy storage, a flexible and controllable load capable of delivering large-scale demand response services, positioning it as a competitive alternative to traditional energy storage systems, including electrical, mechanical, thermal, chemical, and electrochemical storage solutions. By strategically aligning mining activities with grid conditions, Bitcoin mining can absorb excess electricity during periods of oversupply, converting it into digital assets, and reduce operations during times of scarcity, effectively emulating the behavior of conventional energy storage systems without the associated capital expenditures and material requirements. Beyond its operational flexibility, this paper explores the cyber–physical benefits of integrating Bitcoin mining into the power transmission systems as a defensive mechanism against false data injection (FDI) cyberattacks in smart city infrastructure. To achieve this goal, a decentralized and adaptive control strategy is proposed, in which mining loads dynamically adjust based on authenticated grid-state information, thereby improving system observability and hindering adversarial efforts to disrupt state estimation. In addition, to handle the proposed approach, this paper introduces a high-performance algorithm, a combination of quantum-augmented particle swarm optimization and wavelet-oriented whale optimization (QAPSO-WOWO). Simulation results confirm that strategic deployment of mining loads improves grid sustainability by utilizing curtailed renewables, enhances resilience by mitigating load-generation imbalances, and bolsters cybersecurity by reducing the impacts of FDI attacks. This work lays the foundation for a transdisciplinary paradigm shift, positioning Bitcoin mining not as a passive energy consumer but as an active participant in securing and stabilizing the future power grid in smart cities.