Read this guide to know if solar Energy is capable of turning Crypto Mining eco-friendly. Learn how solar energy will save the environment from the crypto mining effect.
Bitcoin and other mainstream, high-cap cryptocurrencies are now considered major businesses with market caps of these coins breaking their own records. Bitcoin has been hailed as the primary cryptocurrency in the sector with many top influencers supporting Bitcoin and its growth.
Amidst the enthusiasm of reaching new #ATH, there have been major issues related to Bitcoin that have also surfaced and need attention. One factor that can easily undermine the success of Bitcoin is the massive amount of power that is required for mining the coins.
The profitability and prospects of mining Bitcoin have gained popularity and many mining farms have mushroomed across the world. But the crypto mining farms without a doubt require massive amounts of electricity in order to work with full efficacy.
We are all aware that environmental concerns like global warming are enraging society and adding to this, the heavy usage of power for mining can put a damper on resources. Hence there is an increased need for farms to switch to renewable sources of energy, but time is just slipping out.
Let’s observe some facts
Cryptocurrency mining is a heavy activity that requires heavy capital expenditure. Miners are here expected to pay heavily if they have to buy rigs with huge processing power. The rigs by themselves need tremendous amounts of electricity to function making it extremely difficult for miners to find the right balance between costs and profitability.
We all are aware that mining is indeed a formidable source of revenue but power-hungry machines still take a back seat when people get a good ROI. The Bitcoin network in 2017 consumed 30 terawatt-hours (TWh) of electricity a year. But now the network uses more than two times that energy. As is claimed, each Bitcoin transaction roughly needs an average of 300 kg of CO2 equal to the carbon footprint produced by 750,000 credit cards swiped. (Digiconomist)
Long before crypto mining was popularized, the global environmental warlords were still seeking solutions to generate and build on a sustainable way of energy production. Climate change, global warming, and depletion of the ozone layer continuously threaten humanity. Coming to think of it, as per some estimated Bitcoin independently consumes 0.15% of the world’s energy which far exceeds the energy consumption of small countries such as Ireland or several African nations.
Cryptocurrency Mining has assisted several industries without a doubt, but owing to the heavy electricity usage and environmental impacts, it can seriously undo what little progress has been achieved to preserve environmental progress. There is an urgent need for mining farms to switch to alternative sources. The top Bitcoin influencers should come out in support of such resources to bring a change.
Finding the right balance between Mining costs and crypto Prices
When costs are controlled in a mining operation, it will undoubtedly increase profits. But a cheap mining operation is only one part of it all. For the miners to make consistently neat profits, the price of the token has to remain high. Merkle suggests that the prices of Bitcoin have to stay above $2000 for the operation to be profitable.
More and more miners now will turn to renewable energy zones. Iceland has become increasingly popular for miners because of its limitless and rapid internet connectivity. Miners who are looking to move towards hot areas like deserts need to be cautious because mining in the heat could cause a breakdown of the rigs.
Use of solar panels
The use of solar panels is surely popularizing because it promises good potential and is cheaper to maintain than other renewable power plants such as wind plants or hydroelectric plants. Mining farms can use this source especially when their operations are in desert areas where there is ample scope for solar energy to thrive.
This in turn will cut power costs because mining tokens will be so cheap that it will be a profitable operation for miners. It will help mining farms cut down on electric costs, significantly making the profits larger.
Many mining farms which are aware and are initiating using such methods like Zionodes have already started working on the same. In fact, a mining farm with 25 separate computing rigs has been successfully running its operations using solar energy for a year now. The operation has been so successful that the firm plans to add 1000 more computers to the farm.
Conclusion
One of the most important factors of mining is the flexibility to mine from any location. This kind of flexibility surely incentivizes miners to begin operations in zones where the electricity costs are cheaper and more efficient.
Considering this, crypto mining farms can be located where the energy is not just the cheapest but also the cleanest. The Facebook hydroelectric data center has made efficient use of this environmentally friendly model and demonstrated how this relationship can be established.
ABOUT THE AUTHOR: Ian Valois
