When people first started cryptocurrency mining, they could do it from their standard home PC. As time has progressed and the mining industry has moved on, this landscape has changed. While you can still use a reasonably normal home computer for mining currencies like Bitcoin, the bang in the industry has led to powerful mining farms being set up. These mining farms have many ultra-powerful computers that mine for cryptocurrency and make individual home mining harder in comparison.
One big problem with these huge mining farms is the amount of electricity they use.
Hydro Mining Could Be The Future
The gush in electricity consumption has been the reason behind the concern among developers and investors alike, especially at a stage when digital currencies look as if to be close to breaking through into the mainstream worlds of investment and trade.
A new green energy company claims to have the answer to a problem that is out breaking the digital currency industry. Cryptocurrencies like Bitcoin continued to gain popularity; they have larger & larger demands on the world’s energy supply. Although the currency is digital but they require a massive amount of electricity & computing power to mine.
Hydro mining utilizes water to generate the power to run all the computers in a mining farm, all along with water cooling powered systems for protection when it is in use. This sort of mining is an environmental friendly and sustainable form of mining as compared to traditional fossil fuels that can be employed to generate electricity.
Another added benefit of this kind of mining is that it allows companies to exercise water cooling systems to keep the hardware at the exact temperature. This can lead to fewer burnouts from overheated equipment & less downtime as a result.
By adopting hydro mining as an approach to power their functioning, mining farms & businesses will not only be helping the environment but also function in a smarter and more professional manner.
HydroMiner GmbH Raised $2.8 Million
In the month of November 2017, a company called Hydro Miner GmbH raised about $2.8 million in funds through an initial coin offering. The start-up strategizes utilizing the cash to install high-powered computers at hydropower plants. The company will make use of the energy produced at those plants to mine new digital currencies, reducing both costs and pollution as a result.
CEO of Hydro Miner, Nadine Damblon stated that people are worried about the massive energy utilization of cryptocurrencies and which is again a huge factor.
The total utilization, which amounts to around 28 terawatt-hours per year, is more than the nationwide power consumption of the country of Nigeria, with its 186 million population. What’s more to important to note is that the energy being used is generated through fossil fuels.
Miners Face Increasing Barriers to Profitability
Other reasons why hydropower can be positive is the sharp productivity that miners are experiencing. According to analysis miners requires the worth of Bitcoin to reach $300,000 per coin by 2022 in order for the mining process to remain beneficial. This estimation is based on recent growth rates for mining and for the electricity utilization.
Hydro Miner and other companies that are moving towards hydro mining concept are going to find many strong supporters in the mining community. Damblon explains that the company will mine only through the renewable energy. There will be additional blockchain adoption if the energy problem can be handled in this way.
An Eco-Friendly Strategy
Solving the difficult algorithms to decode the cryptography uses huge power, mostly from non-renewable energy sources.
A company like HydroMiner will use hydropower to fuel its mining activities which is one of the best and low costly, sustainable energy sources all around the world. It is ecologically friendly, carbon neutral and natural.
Also, using water to cool mining hardware can lessen cost by up to 85 % not as much as the average power costs in Europe.
From an environmental outlook, in this way cryptocurrency mining will move towards a more eco-friendly energy source that lessens the cost of power consumption as well as creates it from renewable sources, limiting the carbon impact of such operations.
Conclusion
Aside from utilizing eco-friendly energy sources, hydro mining gives increased reliability, cost-effectiveness, and improved performance.
Mining requires effective, specialized PC equipment to run without a break for the duration of the day under remarkably high loads. This implies fatigues and breakdowns because of overheating is an undeniable issue in crypto mining.
Consistently, even each hour of downtime implies the operation is losing cash.
Utilizing water-cooling frameworks in the hydro-mining process guarantees that the mining machinery and processors are kept at a safe working temperature at a lower cost. This makes a more reliable mining condition with least downtime because of breakdown.
Ricky Makan is a venture capitalist and Crypto Enthusiast best known for pioneering the market for Digital Marketing. He is a Co-founder of Unkrypted, a platform which provides the latest news and information that helps understand everything about the ever-evolving world of digital currencies.