Renewable energy is becoming a priority for cryptocurrency miners looking to maximize their profits, as new sources of renewable power offer more efficient and cost-effective alternatives. Here are some on the six best sources of green electricity that have been adopted by mining companies so far.
The “crypto climate accord” is a document that was created to help guide the future of Bitcoin mining. The document includes 6 sources of renewable energy that will power the future of Bitcoin mining.
Yes, Bitcoin mining uses a lot of energy – roughly 110 terawatt hours per year, which is similar to the energy consumption of a small nation. It’s simple to understand how so much energy may be generated when a single Bitcoin mining farm is operating hundreds or thousands of mining rigs (about the equivalent of running a space heater) all day, every day. It’s also clear to understand why Bitcoin miners’ primary focus is keeping energy costs low.
The good news for large-scale Bitcoin mining operations is that the cheapest sources of energy, such as wind, solar, and hydropower, are also the cleanest and most sustainable, costing less than gas and coal. Furthermore, according to the Cambridge Center for Alternative Finance, 76 percent of miners are currently using sustainable energy sources.
Still, with recent issues in the headlines about the source of Bitcoin’s energy consumption and if it can be sustained in the future, there’s more work to be done to raise awareness and acceptance of renewable energy sources.
Here are the top renewable energy sources that will drive the mining sector in years to come whether you’re seeking to establish a mining operation, switch electricity sources, or invest in a mining firm and want to know more about where they receive their energy.
Solar is the most extensively utilized renewable energy source, and it’s also one of the simplest straightforward: photovoltaic cells in solar panels capture energy from the sun’s beams. They’re simple to set up and maintain, and they don’t need any drilling, mining, or burning. Furthermore, solar energy prices have steadily decreased in recent years, with the cost of electricity generated by utility-scale solar photovoltaics (PV) falling by 82 percent between 2010 and 2019.
Square and Blockstream recently announced that they will invest $5 million in a fully solar-powered Bitcoin mining facility to “show that a renewable mining facility in the real world is not only possible but also prove empirically that Bitcoin accelerates the world toward a sustainable future,” as they put it.
Another possibility is wind-generated renewable energy. This entails erecting enormous wind turbines in open regions to catch wind energy and convert it to electricity. It’s another renewable energy source that doesn’t involve drilling or mining — just the installation of wind turbines — and the energy generated can power single houses, cities, or even whole nations. Wind energy costs one to two cents per kilowatt-hour, and rates are usually set for a long time. Wind is particularly appealing since it has no fuel expenditures or consumption, and it creates jobs.
Following China’s ban on Bitcoin mining operations, many miners are expected to relocate to Texas, owing to the state’s substantial wind power, which accounts for up to 20% of the state’s electricity.
One of the oldest sorts of renewable energy sources is capturing energy from water currents (think water wheels powering mills or the Hoover Dam). It’s also a very reliable source of energy, since continually flowing waterfalls may give constant, limitless power, whether caught by rivers or recreated with damming and turbines. It’s also one of the cheapest in terms of expenses, at 85 cents per kilowatt-hour, and up to 90% of the energy may be turned into electricity.
Before the statewide crackdown, one of the major advantages Chinese mining businesses had was the ability to tap into large quantities of hydroelectric power, particularly in Sichuan province, where hydro provides 95 percent of energy during the wet season.
President of El Salvador, Nayib Bukele, made headlines when he invited Bitcoin miners to utilize their volcanic energy, which is really geothermal energy, a sustainable resource. Geothermal energy is derived from heat trapped beneath the Earth’s crust, which may include energy released through steam or even volcanoes. Geothermal energy has a capacity of 14,000 megawatts as of 2020, and is considered a reliable and abundant renewable energy source. Geothermal energy, on the other hand, is only accessible in select parts of the earth where heat may rise to the surface, such as near tectonic plates.
Ocean Energy and Tidal Power
Similar to hydropower, capturing tidal power or ocean energy is another green alternative. Instead of flowing water, tidal barrages or turbines placed up below sea level in the ocean collect the movement of the water and convert it to power. While acceptance has been limited so far, with just a few sites constructed, this alternative is becoming more popular as technology advances and prices fall. It is, nonetheless, quite promising: South Korea’s biggest tidal power plant produces about 500 gigawatt-hours per year, or the equivalent of 862,000 barrels of oil.
Biomass and Waste Energy
Waste energy is another renewable source, in which organic material is broken down to produce heat by incineration or microorganisms that breakdown organic material. The heat produced then powers steam turbines, which generate electricity. This method may also aid in the reduction of landfills. 4New made headlines when they revealed that they will build a waste-to-energy plant to power their facilities.
How Bitcoin Mining Can Be Used by Others as a Renewable Energy Source
Bitcoin miners aren’t simply interested in consuming renewable energy sources; they also want to be renewable energy providers. Some miners may sell their surplus electricity back to the grid. Others are repurposing their surplus mining farm heat to heat greenhouses and other local businesses, as well as communities.
Bitcoin mining will undoubtedly play a significant part in ensuring a sustainable future, whether it is consumed or produced.
Genesis Digital Assets’ Abdumalik Mirakhmedov contributes a guest article.
Genesis Digital Assets’ Co-Founder and Executive Chairman is the world’s most experienced Bitcoin miner. He is a seasoned manager and tech investor who focuses on the Digital Assets and Artificial Intelligence businesses. He has worked in both public and private enterprises for more than 15 years. Abdumalik has built the most successful worldwide crypto mining enterprise by combining his experience and faith in Bitcoin.
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The “can i mine bitcoin on my phone” is a question that has been asked many times. The answer is yes, but you will need to find 6 sources of renewable energy that will power the future of Bitcoin mining.
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