The amount of electricity used for mining is of concern in terms of environmental impact. Current estimates place the energy consumption for Bitcoin mining at around 2.55 gigawatts, almost as much as the whole of Ireland consumes. And this problem only gets worse as the number of operations increases.
However, Soluna is seeking to offset the environmental impact of Bitcoin mining with its wind farm, which will be located on 37,000 acres in Morocco and will be capable of producing up to 900 megawatts, providing the company with a cheap renewable energy source for Bitcoin mining. The company intends to complete construction by 2020.
Soluna is confident that Bitcoin has a future, but at the moment, the only way to make money from mining is by reducing the cost of electricity consumed.
John Belizard, CEO of Soluna, believes that a “vertically integrated” mining model will become less carbon-intensive wayto maintain operations. He also hopes that Soluna will be able to fund other renewable energy projects with revenue from cryptocurrency operations.
Mining companies tend to be concentrated in places with cheaper electricity. Miners in some regions of China can purchase electricity for about $0.03 per kWh. As a comparison, the average price in the US is $0.13/kWh. However, miners are often prohibited from carrying out such activities in places with cheap electricity, such as Iceland or the US-Canada border.
If the company's project is successful, this will help reduce Bitcoin mining cost. However, it should be understood that although Soluna uses renewable energy for mining, this does not reduce the carbon footprint of Bitcoin mining as a whole. This could potentially provide a viable low-cost alternative to extracted fuels. To reduce the environmental impact of crypto mining, Soluna will have to convince others that wind power is the future of Bitcoin mining.
According to btcmanager.com
You May Also Like
Miners Convinced of Bitcoin's Bright Future
Despite the decline in the cryptocurrency market in 2018, the heads of many mining companies believe that there is no need to worry about low prices, because the market has previously shown the same behavior.
Rising cryptocurrency mining costs have reduced demand for GPUs
The largest developers of graphic architectures note a serious drop in sales of video cards due to weakening interest in mining in the second quarter of 2018.
