Cryptocurrencies used to be just the brunt of some bad jokes and an afterthought. All that has changed dramatically lately as the price of various cryptocurrencies has soared to never thought possible highs. Now people are paying close attention and investing in cryptocurrencies at a pace never seen before. There is however one often overlooked part of the cryptocurrency maintenance process that’s expensive to undertake because it uses major amounts of energy to accomplish it; it’s called cryptocurrency mining.
Solar power and other renewable energy sources may play an instrumental role in lowering the environmental and monetary costs of cryptocurrency mining.
What is cryptocurrency mining?
In case you are not familiar with how cryptocurrencies work and what that has to do at all with solar power, we will give you a brief overview of them here. Cryptocurrencies were created as a means of currency exchange that does not use a middleman or 3rd party to help make the exchange (Banks and governments act as middlemen for currencies). This is accomplished by keeping track of what is known as a ‘blockchain’.
Essentially a blockchain is a list of every transaction that has taken place with a certain cryptocurrency. As you can probably imagine a blockchain can grow considerably over time as more and more transactions are done in a particular cryptocurrency like ‘Bitcoin’. It takes powerful computers that consume massive amounts of energy to help keep any blockchain current. The process of keeping the blockchain current with these supercomputers is called ‘mining’.
Cryptocurrency miners are the people that run the powerful computers that maintain the cryptocurrency’s blockchain. They are paid in cryptocurrency for their efforts but the skyrocketing energy costs to run these super computers severely cuts into the profit of any cryptocurrency mining setup.
Here is where solar power can play a vital role in making cryptocurrency mining more profitable for those who undertake it.
How can solar power help cryptocurrency mining?
It’s estimated that to run today’s super computers that keep a blockchain current it takes as much energy consumption in a day as it takes to power some entire small countries. It’s estimated by early 2020 total cryptocurrency mining energy consumption will equal that of the entire United States. That is a huge cost not only in monetary expense but also in environmental costs because of how that energy is produced. Imagine if a large part of the cryptocurrency mining energy consumption process was done using solar power.
Solar power is virtually free once it has been set up and solar power also leaves only a very little carbon footprint on the environment. That is why so many people feel that solar power and other renewable energy sources like solar power will play a key role in more efficient and profitable data mining. It’s just another example of how solar power gives back to those who use it and the environment.
Solar Power Mining Rigs to the Rescue
The drive to find cheap energy sources that will boost profits is what has made cryptocurrency miners seriously consider building cryptocurrency mining computer rigs that run on solar power. Solar power has shown to be very effective at this so far. By using solar power, cryptocurrency miners seek to reduce monthly energy costs to nearly zero.
By making cryptocurrency mining rigs that run completely on solar power ‘miners’ have a chance to make that near zero energy cost goal possible. Of course at the moment there are substantial initial setup costs for a solar power cryptocurrency mining rig. You need to purchase and install solar power panels, solar power controls and batteries to store the extra solar power that is generated.
Don’t forget either, that these powerful computers get very hot when working. Solar power will also be consumed in large quantities to help keep them cool inside their enclosures.
Expect To See Solar Power Revolutionize Cryptocurrency Mining Operations
Without a doubt solar power will play a big role in future cryptocurrency mining. You will see these cryptocurrency operations start to pop up that use huge amounts of solar power panels, many solar power batteries and other components that run off of renewable solar power.
The savings between using energy purchased from suppliers as opposed to home generated solar power can be quite substantial. That fact alone will drive more cryptocurrency miners towards renewable energy sources like solar power. So look for solar power and solar power cryptocurrency mining rigs to be a big factor in allowing cryptocurrency mining operator’s to be able to increase their profitability.