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