This year in 2021, the value of bitcoin reached an all-time high of $41,962. Bitcoin has more than doubled since its $20,000 peak during the 2017 bitcoin boom. With its high popularity, lots of individuals looked into cryptocurrency mining as a process to capture part of this boom. Cryptocurrency mining is how digital currencies like Bitcoin and Etherium can be obtained. This process is extremely energy-intensive and requires substantial computing power to solve complex mathematical problems essentially. More and more cryptocurrency miners turn towards renewable energy sources like solar to reduce costs to improve the ROI of mining.
Bitcoin is the popular cryptocurrency in existence. It is like a digital version of cash. It can be used to purchase products and services. One of its most unique features is that every transaction is recorded in a public list called the blockchain. To obtain Bitcoin, you can either purchase bitcoin with legal tender like the US Dollar or mine them.
Cryptocurrency mining is when digital currencies are discovered through a complicated process called “mining.” Mining has a magnetic appeal for many investors interested in cryptocurrency because miners are rewarded for finding and updating the blockchain. By mining cryptocurrency, you are rewarded for completing “blocks” of verified transactions added to the blockchain. Mining rewards are paid to the miner who discovers solutions.
To obtain cryptocurrency through mining, miners use mining rigs use numerous graphic cards called GPUs or ASICS. When starting a bitcoin or Ethereum mining operation, there are two essential factors — cool temperatures to keep the high-powered processors from overheating and fast and stable internet. Ethereum is designed to be mined with consumer graphics processing units or GPUs. In contrast, Bitcoin can only be mined effectively with specialized devices. Commonly referred to as application-specific integrated circuits or ASICs. These mining rigs run complex computer algorithms to discover new blocks of transactions called hashes. GPUS and ASICs in mining rigs are heavily overclocked to run computations faster. When a mining rig generates the correct hash, it is essentially the same as discovering a new prime number. The algorithm for all cryptocurrencies is built such that as the network grows, the harder it becomes to find new, unique hashes.
Typical mining rigs comprise 6 to 14 GPUs, and a GPU can consume $.05 – $.10 kWh, which can range from $.30kWh to $1.4kWh. However, the rigs themselves are typically not the reason why the cost of mining is too expensive. Cooling costs are substantial. Imagine your A/C always running on full blast to cool multiple rigs generating heat. If your mining rigs get too hot, it could burn out your GPUs faster. Cooling is essential when it comes to cryptocurrency mining.
As it gets harder to mine, so does the computer processing power required to create new hashes. Supercomputers and numerous mining rigs are needed to discover unique, new hashes. One of the most challenging parts of mining is weighing the value of cryptocurrency with the energy costs associated with running and cooling the mining rigs.
More importantly, the environmental impact is substantial as well. As the cryptocurrency network continues to expand, more energy will be required to maintain and update the blockchain and discover new hashes. This means that a tremendous amount of non-renewable sources of energy like carbon-based fuels are needed. Adopting solar energy can be a fantastic solution to improve mining’s profitability while reducing carbon-based fuel consumption. This is what makes solar the cornerstone to sustainability.
With the help of solar energy, mining cryptocurrency is a relatively new idea that started to get popular in 2017. The best setup for cryptocurrency mining is dictated by three factors: the maximum hash rate, energy consumption, and the purchase price of the equipment. You aren’t able to impact the hash rate. The only factors you can affect would be your energy consumption and the purchase price of the equipment. The cost to purchase the mining hardware is a one-time fixed costs. The most significant risk is if the hardware becomes obsolete with new, more advanced GPUs or ASICs pushing out existing mining equipment—especially those with higher electricity costs. Therefore the best way to improve your system’s profitability is by reducing your energy consumption. The best way to do this is through solar.
Lest you think this sounds like an effortless get-rich-quick scheme, setting up a Bitcoin mining operation is no easy task. It requires the start-up capital to purchase the requisite computing power and the technical and mathematical knowledge to run the programs. It also requires a considerable amount of energy, so much so that electricity costs are now the determining factor when considering a Bitcoin mining operation’s profitability. Introducing solar power into the equation tips the scales toward maximum profit and offers an environmentally sustainable option to expand the Blockchain network.
Maximize the profitability of your cryptocurrency mining operation, by calling Forme Solar. We are the best solar energy company that specializes in minimizing the cost of electricity. The more you spend on electricity, you’ll have a smaller payback period. This is why it is crucial to call a solar energy company specializing in working with cryptocurrency operations. Reduce the consumption of carbon-based fuels and your electricity costs, call Forme Solar today at 714-694-2262.