Green-power cryptocurrency mining is the future

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Cryptocurrency mining could shift to alternative energy solutions in the coming years to maintain and increase profitability.

As early as 2017, it was emphasized that the collective energy consumption in the bitcoin mining network (BTC) exceeds the energy consumption and leaves a larger carbon footprint than some countries. Towards the end of 2019, several studies showed that the bitcoin network consumed less energy, despite increasing hashrate values. These also included data estimating that approximately 75% of bitcoin extraction was powered by renewable energy sources. Many industry players are actively looking for alternatives to make mining less expensive, both economically and ecologically.

Oil powered mining

Oil extraction has long been a proverbial gold mine that plays a significant role in the energy industry and trade around the world. A few companies have used bitcoin mining as a more cost-effective way to use excess gas from oil extraction, as opposed to converting the gas into a liquid form and selling it.

Stephen Barbour, president of Upstream Data, which manufactures and supplies for oil and gas mining companies the necessary equipment for mining of cryptocurrencies, said: “We started marketing in 2017 and few took us seriously, now we get calls from the same people who turned us down for the first time.”

Solar power

Renewable energy sources are another important aspect for the future and are a focal point in mining circles. The simple question is whether it is more advantageous for electricity produced from solar farms to be sold to energy networks or used for mining. Last year-1300% for BTC. This is the best solution for small miners.

There is, of course, some obstacle, given the initial cost of purchasing solar panels and mining hardware. However, the amount of money saved for energy is a mitigating factor.

Hydroelectric power

Hydropower is a major driver in the world of bitcoin mining, especially in China and Canada. They were able to offer better electricity prices for industry near some dams. According to the latest CoinShares report on the global mining ecosystem, published at the end of 2019, miners are mainly located in regions using cheap hydropower.

Water and oil: lifebuoy for crypto mining

Interviews with various experts and industry players point to hydropower and oil producers as the main sources of electricity for cryptocurrency mining operations. Mining operations powered by solar panels are a relatively small percentage representing several tens of megawatts compared to the various energy sources used by the mining ecosystem.

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