As miners seek for new ways to maximize their profits and keep mining costs to a minimum, they are turning to green power. Many miners are beginning to realize that renewable energy could significantly help them boost their profits while helping them cut down on their environmental impact.
Mining and Energy Sources
According to recent reports, major mining companies such as the Bitfury Group hope to attract investors by using clean energy in Paraguay, Iceland, and Canada. One of the mining companies that has already established a green energy powered mining plant is Golden Fleece. It is utilizing the cheap electricity from hydropower to mine cryptocoins. The company is only using hydropower right now. However, it plans to take advantage of wind and solar power in coming months.
Besides helping companies minimize their negative impact on the environment, the companies are also able to cut down on mining costs when they utilize green energy. This way, they can keep more of the money they make from mining operations. According to recent estimates, the mining of digital currencies consumes a huge amount of the profits that companies make. It is calculated that almost 60% of profits go towards paying the electricity bills.
It is estimated that all of the Bitcoin mining done around the world daily requires an equivalent of 30 nuclear reactors running at full capacity. However, with the recent slump in the prices of Bitcoin to below $8,000, it does not leave much for the miners. As the blockchain of Bitcoin continues to grow, it will only become harder to mine it, which will make it quite unprofitable for most miners. However, if they adapt, they could still manage it.
When mining digital currency, it is not just the computational power which sucks up energy. You will usually also have to deal with the cost of air conditioning and ventilation. These are usually needed if you hope to keep your mining rigs from overheating. The result is that the bill just keeps rising.
Because of this issue, most miners are heading to regions where renewable energy is easy to access. Miners are in search of places where they can grow their margins in a volatile market. In the digital currency market, you can make money today and lose it tomorrow. Thus, having a cheap power source is important.
Today, some of the cheapest places to secure energy are Canada, Paraguay, and Switzerland. In these places, mining using clean energy is possible and makes economic sense. With the financial incentive of using green energy, Bitcoin might just help to spur the growth of renewables. This comes at a time when the industry is about to mature, with major investors joining the mining craze.
What do you think about the utilization of green energy in digital currency mining? Leave us your thoughts in the comments section below.