Even if you can’t tell the difference between Bitcoin and a bread basket, you’ve almost certainly heard of cryptocurrency and possibly the controversy surrounding its high energy demands. As the popularity of cryptocurrency continues to rise, educating yourself on how to efficiently power a mining operation can be a smart way to get in on the growing opportunity.
What Is Cryptocurrency Mining?
“Mining” is the process of producing units of cryptocurrencies like Bitcoin. High-powered computers are used to solve complex math problems or computational puzzles. When these problems are solved within the cryptocurrency network, new coin is produced, and the issues solved verify transaction information on the cryptocurrency’s network. This verification activity makes the payment network secure.
How Much Energy Does It Take to Mine Cryptocurrency?
The fundamental difficulty in mining Bitcoin is that it requires power-hungry computers, and there is a limited number of coins to be mined. There are 21 million bitcoins and a discovery cycle of 132 years, meaning it will take exponentially more power to mine as time goes on and the total supply dwindles. As of mid-2021, Bitcoin was found to consume 110 terawatt-hours per year, which amounts to 0.55% of the world’s electricity production. That outstrips the power used by entire countries, including Sweden and Malaysia.
Why Solar Panels Are the Ideal Power Source
Two factors are driving the potential of solar as a power source for Bitcoin mining. One is that the current use of electricity is unsustainable in the long run from an environmental perspective. The other is that miners must be careful they aren’t spending more on electricity than they are gaining back in mined cryptocurrency. Solar power is the optimal solution on both accounts.
For miners, solar is an essentially unlimited source of power. Once the system is paid for and set up, the power itself becomes free, with virtually no impact on the environment. Prominent players in the cryptocurrency industry are coming around to solar to cut costs and be more environmentally friendly. Well-known financial services firm Square is investing $5 million in a solar-powered Bitcoin mining facility, and others 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 start your solar panel farm. Ask us for an evaluation, 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.
Give us a call at (716) 634-3780 or reach out online to learn more and get started today!