Is There a Green Solution For Mining Cryptocurrency?
With its rising popularity, cryptocurrency has become a star of investors and tech enthusiasts. Among some investors, there is a concern about the eco-friendly nature of this cryptocurrency. Each cryptocurrency is mined using technology and massive amounts of electricity. If the electricity is created through coal plants or gasoline turbines, it can end up harming the environment. Luckily, there are people already searching for a greener way to mine cryptocurrencies.
Solar Power and Cryptocurrency
In September, cryptocurrencies had a global market capitalization of $170 billion. Bitcoin accounted for $70 billion of this total. One problem with cryptocurrency is the massive amount of energy needed to actually do the mining. According to Sebastian Deetman, mining will use as much electricity by 2020 as the entire population of Denmark. As Bitcoin’s algorithm becomes more difficult to mine, the power needed will increase exponentially.
One clever solution is to use eco-friendly solutions like solar power. Solar power can be installed on a roof or in a yard. In many nations, solar panels are covered by tax breaks and write-offs. The initial investment in solar energy might still be cost-prohibitive, but it ends up paying for itself over time. In many areas, excess power can be sold back to the main grid for a profit.
Ultimately, the profitability of mining depends entirely on how expensive electricity is. Unlike other electrical options, solar energy is almost free to produce. The main cost is through buying the materials and setting up the panels. After that, the only business cost is repairs or replacements. Otherwise, all of the electricity produced is free. If excess electricity is produced, it can even be sold back to the grid. After the initial costs, mining has almost no ongoing costs for the next 25 years until the system needs to be replaced.
In Arizona, NastyMinning set up a sustainable operation in 2012. They developed a platform that focuses on a pool of small-scale miners. The goal was to create a socially responsible business. Before long, the business decided to be environmentally responsible as well. They started the Green Energy Project to encourage green mining. SunPower donated 29 panels to help the project. Meanwhile, Crypto Exchange YoBit donated a wind turbine.
Iceland’s Geothermal Options
The main way to make future mining operations environmentally friendly is through eco-friendly power. While there are only a handful of mining operations that use geothermal energy for now, the situation will quickly change in the future. In Iceland, Genesis Mining and other operations are using cheap, sustainable power. They power their entire system with geothermal energy.
Hydropower for Cryptocurrency Mining
Other energy options are also used by mining companies. Started by Nicole and Nadine Damlon, HydroMiner was started in 2014. All of the mining activities are powered by energy from hydropower plants within the Austrian Alps. Now, the company owns two hydropower stations that offer low electricity costs. Plus, the water from the hydropower stations is used to cool the mining equipment.
Investing in Wind-Powered Options
The last option for cryptocurrency mining comes from the wind. Giant windmills known as wind turbines can be set up in regions with high wind speeds. This option can be used on a smaller scale and provides a fairly cheap source of power. Currently, mining operations like HARVEST are using wind-powered systems. This Berlin-based company uses wind energy to mine virtual currencies. Then, all of the profits from mining are donated to climate change research groups.
The goal of renewable energy is to reduce mankind’s dependence on fossil fuels. Unfortunately, mining operations currently use a significant amount of electricity. Because of how a cryptocurrency works, a single Bitcoin transaction can use as much electricity as it takes to power eight households in the United States for a single day. Each Bitcoin transaction is recorded in a blockchain that lists every transaction that has ever happened. Then, miners have to maintain the ledger and add new transactions.
Currently, computers that mine Bitcoin use up 0.16 percent of the electricity demand of the entire world. If cryptocurrencies continue to grow in popularity, the electrical demand will only increase. The average miner spends 70 percent of their overall costs on electricity. With the right energy system, miners can reduce their overall costs and create an eco-friendly energy source.
A New Source For Green Mining: InfluenceMine
2018 is here and with it is coming some new solutions to green mining. InfluenceMine has created a sustainable way to mine for your favorite crypto’s through a patented mining process. On Top of that, you will be able to access the mining from an app on your phone. Simple and easy so anyone can do it, no technical skills needed.
Here is a short video of Rob Towles explaining a little about how it will work and when the full release should be out.