Cryptocurrency promoting transition to green energy
- Cryptocurrency and its mining processes have often been blamed for their negligence of the environment as the tremendous amounts of energy required to power the business has even surpassed the power consumption of some small nations on the planet. This is further echoed by the fact that the energy requirements are often fulfilled by unsustainable methods, such as fossil-fuel based electricity generation, leading to carbon pollution at the hands of the industry.
However, since 2019 it has been shown that despite more complex cryptographic coding of the bitcoins and cryptocurrencies, the energy requirements have started decreasing. Why is that so? Well the answer was shown by the fact that around 75% of global mining has started transitioning to green energy. Many industry players were searching for ways to gain economic benefit, but also not be responsible for environmental degradation, in comes the technology of solar power to aid them.
Renewable Energy Sources
Renewable and green energy has shown a positive trend in the mining circles and communities as most operations have gone decentralized using solar power to fulfil their energy needs, thereby not relying on dirty energy sources and going clean and green. This adds to the fact that cryptocurrency and its mining operations have started delving into the green energy streams and have used renewable sources as a way to earn even more revenue and also to sell cheaper power to national power grids. This adds the benefit of green transitioning being influenced and promoted, and also the less likelihood of there being a shortage of electricity. The only barrier to this can potentially be the initial investment of solar panels, but once you get past that, it tends to be around 75% cheaper than regular grid-based energy and offers more profit.
Another source of renewable energy is that of Hydel Power. This industry has offered preferable electricity rates to many miners who have yet to invest in Solar mining farms.
It is because of hydropower that various studies claim that 73% of global mining operations are now focused on renewable sources of energy.
Cheapness of Solar power
In order to stay relevant and compete in this competitive industry, miners search for the cheapest sources of energy and it just so happens that the cheapest avenues for this is renewable energy production. Gas and oil companies used to be favorable, but due to the cheaper rates of hydropower, wind power and the growing independence that solar power offers, it makes the crypto industry wish to transition to the renewable domain. Many industrial experts claim that the most cost-effective source of energy is going to remain hydropower and solar power, for the near and distant future. The savings offered from an economical and environmental standpoint are to vast to be ignored and prove that the era of fossil fuels is in the past, bigger and better things are now offered via renewables and other bleeding edge technologies.
Moving back to solar energy usage as an energy source in the mining industry, although they amount for a very small percentage of the mining industry, they are slowing growing and can prove to be even better than hydro in terms of cheapness as their technology continues to grow. For now, hydroelectric renewable energy seems to the dominant energy producing species for the next few years, but it might be deposed soon by solar.
With the shift towards renewable and green energy, the transition is allowing for the crypto mining industry to also develop and evolve. There are better operating systems, more creative forms of mining, more options for increasing the profit margin and if this trend continues then of course the profitability, especially with energy, will undoubtably continue to grow.
As long as green energy technology continues to grow and offers a cheaper and more efficient alternative to the fossil fuel industry, the cryptocurrency mining ecosystem will continue to adopt them. Be it through solar, or wind or even hydel power. The green industry is developing hand in hand with the crypto one. This will eventually aid in the global transitioning away from fossil fuels, promote decarbonization, add to a drop in global electricity prices, increase profitability for the miners and ultimately promote a cleaner, sustainable and environmentally favorable world.
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