Bitcoin Mining on Solar Power. For quite some time, Bitcoin and other cryptocurrencies have had a major role in the world of business and in the global financial market. With the total market capitalization of these cryptocurrencies on a constant rise, the process of mining Bitcoin is no longer that simple and it requires huge amounts of energy.
Of course, there is not actually mining involved. Mining is a metaphor used to describe a process of creating new Bitcoins with the use of computers with special characteristics that are looking for the right codes or hash keys. In many aspects, this process resembles the one where gold is being mined, hence the name.
With more and more people getting involved in the business of Bitcoin mining, the amount of power it takes to create Bitcoins is getting bigger every day. Some predictions point out that by 2020, Bitcoin miners will be using more power than the entire country of Denmark. The algorithm for mining Bitcoins gets more complex over time and it is expected that the power required for the Bitcoin mining process will be hugely increasing in the upcoming years.
Seeking Alternative Ways to Mine Bitcoins
From what has been said above it can be concluded that the Bitcoin mining also has effects on the climate change or global warming. Because of that, some have already started to look for an alternative to electric power and it seems that they have found the solution in the solar energy. Solar energy has replaced standard energy in many aspects but so far there have been no cases where the power of the sun was used in the Bitcoin mining business.
Not only the use of solar power for Bitcoin mining would be great to reduce global warming, but the cost of the very process would be significantly lower as the solar energy is much cheaper than the electricity. Solar plants produce electricity that is much cheaper than the one coming out of standard power plants. For many Bitcoin miners, reducing the cost of production might be the main goal in their business development and solar power is the great alternative that could save huge amounts of money.
Besides that, in many countries all over the world, businesses that operate on the basis of renewable energy have tax benefits which additionally reduce the cost of the business. On the other hand, Bitcoin mining is not an easy job and the current value of Bitcoin has reached those heights because of the fact that Bitcoin mining is going slowly and that there is a limited amount of Bitcoins in the market at this moment.
Besides that, many believe that the rise of cryptocurrencies is a huge bubble that would have to collapse at a certain point and because of that, they wonder what will be happening to the Bitcoin mining operations once it collapses and leaves the entire industry in ruins.
While this might be true, solar power provides people with other possibilities as well and one of them is selling electricity generated by renewable energy which is also a business that has been booming in the last couple of years.
Written by Ivan Potocki
