As virtual currencies such as Bitcoin continue growing in popularity as well as price, they have put in larger demands on the energy supply of our world. While the currencies are virtual, they do demand huge amounts of electricity and power for mining. Users and cryptocurrency fanatics have been made aware that the process of validating transactions consumes so much energy. Furthermore, the surge in the consumption of electricity has resulted in some major concern among developers and investors too.
Incorporating Bitcoin Into The Hydro-Power Industry
It was revealed by BBC back in the year 2016 that about seventy percent of the Bitcoin hash rate was situated in China.
However, a large majority of electricity in China is generated through burning coal and this has resulted in one of the largest carbon footprints in the globe. Note that, from industrial boilers down to home stoves, coal produces about seventy-five percent of China’s electricity.
It is vividly clear that mining is staying profitable. Therefore increasing numbers of mining computers will emerge online. This will lead to larger consumption to consume of energy. The solution for this long-term issue will not lie with optional mining. The answer lies with the energy source itself. It is not surprising that with the growth of electricity requirements, miners are now turning to renewable energy sources. An example is the HydroMiner company that makes use of Hydro-Power stations in the Alps region to successfully power all of its mining works.
The Cleanest Source
As the most effective and even cleanest source of energy on Earth, electricity produced from Hydro-Power is stated to emit roughly five to ten percent of the CO2 that is released through conventional fossil fuel power.
Through the use of Hydro-Power, mining companies will pay a lesser amount for electricity. Wind and solar power do not generate a steady energy supply. However, Hydro-Power will be the most suitable power supply for all virtual currency mining.
Bear in mind that, Hydro-Power produces a large amount of electricity without depending greatly on:
- Climatic conditions
- Difficult start-up processes, and;
- Air current flow.
Utilities and Mining Companies
Renewable seems to be the power word. In order to be sustainable, cryptocurrencies mining has to be done using clean energy sources and one of the best examples comes from the Netherlands, where Securix uses almost only renewable energies purchased directly from the producers.
Furthermore, there are ongoing partnerships between some utilities and mining companies. A good example is the work that BitFury Group and Korea-based Common Foundation are doing with the Paraguayan government. The aim of this partnership is to develop and operate mining facilities that are fully powered by hydroelectric energy gotten from plants available in two separate dams.
Future Developments
Both the maintenance and operating costs are known to be low based on the fact that these procedures are mostly completely automated and do not demand fuel.
Other countries aside from China are doing their best to operate with utilities. Efforts are underway to create Blockchain applications that streamline the trading of wholesale energy.
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