November 17, 2021
Bitcoin mining is an energy-intensive process, requiring a lot of computational power to run the sophisticated hardware necessary to successfully mine the cryptocurrency. The cryptocurrency mining process can be a difficult, costly one, so it’s understandable that those involved in mining Bitcoin are keen to use any advantage possible to increase their chances of success. Even small adjustments can provide the slight edge needed to get ahead in the crypto mining industry. Introducing solar energy to the mining process is one small adjustment that could reap big rewards.
Why Solar Is Perfect For Mining Bitcoin
As noted above, mining cryptocurrencies like Bitcoin requires a high level of energy usage to power the computer systems involved in the process. This presents issues on both a personal and a global level—the increased cost of using so much energy reduces earning potential for the crypto miner, while the strain of increased energy consumption can negatively impact the environment. Thankfully, solar provides a solution for both of these problems. A clean, green energy source like solar mitigates the environmental impact of Bitcoin mining, while also offsetting mining costs through the reduction of energy bills.
Why Does Bitcoin Mining Use So Much Energy?
The significant energy consumption associated with mining cryptocurrency is largely due to the huge scale of the network. This is particularly true in 2021 as the popularity of cryptocurrencies has increased exponentially in recent years. As more people have become involved in mining, the mining algorithm has grown increasingly complex. According to Investopedia, the code for Bitcoin targets finding a new block, on average, once every 10 minutes. With more and more miners involved these days, the likelihood of somebody solving the correct hash in a shorter time frame increases, raising the difficulty of restoring the 10-minute target. With such a significant increase in mining power on the network, there are a huge number of machines consuming energy for this process.
Are you interested in mining Bitcoin in an environmentally-responsible way? Reach out to YSG today to learn how you can use solar energy to power your cryptocurrency mining process and lower your costs. Call the office at 212.389.9215 or send us an email to learn how it all works.
YSG Solar is a project development company responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Sources:
https://www.investopedia.com/tech/how-does-bitcoin-mining-work/
Featured Photo by André François McKenzie on Unsplash.