Bitcoin Global News (BGN)
August 07, 2018 -- ADVFN Crypto NewsWire -- With firms that
used to be heavy hitters in Crypto mining like Hashflare shutting
down parts of their operations because they have become
unprofitable, an old issue has become even more
important.
How do mining firms survive in the
face of rising energy costs and shrinking profits?
The easiest answer is something
that has always been there, but has seemingly been written off over
and over again by mining firms.
Instead, the common practice has
been moving to the country with the most favorable regulations
related to Crypto mining businesses as well as the lowest average
energy costs. Because of this, China has become the titan of the mining space.
The trouble is, as mentioned above,
the Crypto market has been sinking for almost the entire year,
causing mining profits to be less and less, over time.
At the same time, energy costs are
not sinking. So why not turn to other sources of energy?
A recent article by Crypto Coins News boiled
this down to five clean energy sources and attempted to argue why
these sources would be useful to mining firms. With a list that
includes solar power, geothermal power, waste energy, hydropower,
and tidal power, the question then becomes: why not utilize these
options?
One logical argument is that they
aren’t as readily available or, in general, as easily accessed as
traditional electric power.
Furthermore, hydro power might be
eliminated because some would argue that it is not really a clean
energy source. Not only is hydro power the same as electricity
generated from water, it has also been shown to be quite destructive to the
environment.
Geothermal energy is being used
more and more by Crypto miners, but there is only so much of it
available. As of now, the most common site where Geothermal energy
is being used is Iceland, where already, crypto mining
is already outpacing the
energy usage of Iceland’s households.
With all of this taken to heart, we
are left with solar energy, waste energy, and tidal energy. As
waste energy still involves consuming some form of trash to create
energy, it is reasonable to question why CCN included it in a list
of clean energy sources.
In terms of solar and tidal energy,
for now, solar rises to the top because of its rising popularity,
globally, in connection with the possible monetary benefits that
come with using it. One blog that deals with the solar energy
industry reported that based on using 11,880 kilowatt hours of
energy per year mining without solar energy, a miner can expect an
annual profit of $20,835.60.
If, on the flip side, 9000 kilowatt
hours of solar energy are used per year, the same blog stated
that the miner can expect a profit of $22,131.60. Furthermore, this
miner reportedly saves $108 in utility costs per
month. When these numbers are used, in
connection with the fact that solar power is more widespread than
tidal power, which is fairly new and needs to exist near the coast,
then the answer appears clear.
The future of Crypto mining could
be solar. It all hinges on whether these monetary benefits, can, in
effect, be proven through real-time usage.
By: BGN Editorial Staff
News:
Cryptocurrency
Mining
Cryptocurrencies