Renewable energy is a widespread concept among Bitcoin miners around the world, who agree that it should be a sustainable activity.
Energy consumption is the highest cost in cryptocurrency mining
When we talk about crypto-mining and electricity, one of the first questions of investors is the electricity consumption and the expense that it entails when making their investment. Bitcoin mining is equivalent to 0.5% of global energy consumption, this process in which mathematical problems are solved to verify the recent blocks of a cryptographic currency transaction is no longer carried out by individuals, consortia miners have an arsenal of computing power. The expansion of the crypto-community has made the process more popular, which has increased the energy required to process and complete these transactions.
But Bitcoin mining is not the only one that contributes the highest percentage to energy consumption, since the impact percentage of mining another large amount of altcoins also represents a high figure in this matter.
Mining responsible with the environment
Since Bitcoin is a revolutionary and innovative product, its purpose is to generate as little impact as possible in the exercise of its mining, hence why many companies seek solutions and study more ecological methods to perform cryptocurrency transactions. For this reason they have proposed the current ecological Bitcoin alternative in the form of Bitcoin Green, an initiative that follows all the original principles of Bitcoin and is built under an extremely rapid energy-saving participation test system and a master node mining agreement.
The process of cryptocurrency mining has become the main electrical product for some small nations, such as Iceland, where more energy is consumed in Bitcoin mining than in house heating. The extraction of Bitcoin amounts to approximately 71TWh of electricity per year worldwide, an amount greater than the energy spent by the Czech Republic or Switzerland.
Larger farms aim to be sustainable
It is necessary to focus on projects that help ensure the sustainability of these technologies, especially in the area of cryptocurrencies, as it’s happening in China, where approximately 60% of all cryptocurrency mining originates, and where most of the cryptographic mining is driven by non-renewable sources.
Likewise, in countries such as Australia, Bitcoin mining projects that use renewable energies are being developed, with the creation of the first mining farm, located in the mining town of Collie, which works with solar energy and which in its early stages expecting to extract a power supply of 4 megawatts at the beginning of 2019. Also, in the city of Malaga, Spain, a project was presented in May of this year, which despite of not being from the crypto-industry, aims to redistribute solar energy through Blockchain.
Renewable energy is key to the sustainability of Bitcoin
Awareness of the urgent need to use renewable energy in cryptocurrency operations is a widespread concept among Bitcoin miners around the world, who agree that this should be a sustainable activity that contributes to the elimination of factors that influence climate change.
For this reason they agree that the main thing, more than to discuss about the amount of energy that Bitcoin uses, is to define how this energy is produced, who produces it and how to make it more efficient. In the same way as there are mining operations in countries whose electricity industry is fueled by fossil fuels, there are also miners around the world who have been housed in areas with electricity produced from hydroelectric and geothermal energy. In addition, they have low temperatures that naturally maintain the cooling of mining equipment, thus dispensing of cooling systems.
Energy options for crypto-mining
- The hydroelectric option: in areas where hydroelectric power plants are already established as a source of electricity, they are seen as a very attractive option for miners, not to mention the preferred one, as is the case in China, where 70% of Bitcoin mining is concentrated in the province of Sichuan, where water resources abound and are used for electricity generation, as well as in Norway and Sweden.
- The option of solid waste as an energy source: instead of using renewable energy plants for cryptocurrency mining, technologies for the transformation of waste into energy could be used, as is the case in some developed countries where waste processing systems have been developed to obtain a source of energy through them.
- The option of solar energy as a viable alternative for mining: solar energy mining can not only boost the Bitcoin industry in many countries but also allows a large part of the world’s population to have options for obtaining energy. In Africa, where in countries like Ethiopia the average temperature is 93ºF throughout the year, solar energy is emerging as a viable option to combat electricity problems and there are already several solar projects in motion. Countries such as Morocco, South Africa, Uganda, Kenya and Burkina Faso already have solar farms. Many produce so much energy, in fact, that they hope some day to export solar energy to Europe.
- The option of geothermal energy: miners have learned to obtain geothermal energy in Iceland, as it is done by a farm owned and managed by Marco Streng, in which the energy is obtained by harnessing the natural heat of the interior of the earth that is transmitted through the bodies of hot rock or reservoirs by conduction and convection, and in this case from the sources of thermal waters.
Cryptocurrency mining grows by leaps and bounds every day, Blockchain technology in its different facets can be developed in any part of the world, and likewise increase the development projects of ecological methods that minimize the energy costs and benefit the environment.