Even if you can't tell the difference between Bitcoin and a bread basket, you almost certainly heard about cryptocurrency and possibly the controversy surrounding its high energy demands. As the popularity of cryptocurrencies continues to grow, learning how to run a mining operation efficiently can be a smart way to join the growing opportunity.
What is cryptocurrency mining?
"Mining" is the process of making units of cryptocurrencies such as Bitcoin. High-performance computers are used to solve complex math problems or arithmetic puzzles. When these problems are resolved within the cryptocurrency network, a new coin is produced and the resolved problems review the transaction information in the cryptocurrency network. This verification activity makes the payment network secure.
How much energy does it take to mine cryptocurrency?
The fundamental difficulty with Bitcoin mining is that it requires power-hungry computers and a limited number of coins must be mined. There are 21 million bitcoins and a discovery cycle of 132 years, which means that mining will require exponentially more power over time and the overall supply will dwindle. In mid-2021, Bitcoin was found to consume 110 terawatt hours per year, which is 0.55% of global electricity production. That exceeds the electricity consumption of entire countries, including Sweden and Malaysia.
Why solar panels are the ideal power source
Two factors are driving the potential of solar energy as a power source for bitcoin mining. One is that the current use of electricity is not sustainable in the long term from an ecological point of view. The other is that miners have to be careful not to spend more on electricity than they recover in mined cryptocurrencies. Solar power is the optimal solution in both cases.
For miners, solar power is an essentially unlimited source of energy. Once the system is paid for and set up, the electricity itself becomes free, with virtually no environmental impact. Prominent players in the cryptocurrency industry are coming to solar to save costs and be environmentally friendly. Well-known financial services company Square is investing $ 5 million in a solar-powered bitcoin mining facility, and more are sure to follow.
Stay ahead of the curve with Solar Liberty
If you're interested in solar powered cryptocurrency mining in New York, Solar Liberty can help you get your solar system started. Ask us for a review and we can walk you through the installation options to run your current or future cryptocurrency mining operation with the unlimited power of the sun.
Call us at (716) 634-3780 or reach online to learn more and get started today!
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