For most people, finding the right way to invest their money is a top priority. With all of the different investment opportunities on the modern market, choosing the right ones can be difficult. One of the most popular investments you need to consider is Bitcoin. Most people who invest in this cryptocurrency also invest in mining. In essence, Bitcoin mining is an automated process where computers perform small tasks online for this cryptocurrency.
One of the biggest complaints most Bitcoin miners have is that this process is very time-consuming and expensive. Bitcoin mining can cost as little as $500 and up to $27,000. The biggest expense associated with Bitcoin mining is energy consumption. Read below to find out more about Bitcoin mining energy consumption and what can be done to solve this growing energy crisis.
How Bad is the Bitcoin Mining Energy Crisis?
Before jumping headfirst into Bitcoin mining, most investors want to make sure they aren’t adding to the strain being put on the planet due to increased energy consumption. A recent study found that Bitcoin mining uses nearly 24 TWh of electricity each year. While this may not sound like much, you need to realize that this is the same amount of electricity consumed by Ireland.
When you put this in perspective, you can clearly see why many analysts agree we are in the midst of an all-out Bitcoin mining energy crisis. One of the main things you need to realize about the energy consumed by Bitcoin mining is that it is powered mostly by coal. Since coal is considered a renewable energy source, the energy it produces is not as toxic as the energy produced by fossil fuels and nuclear plants.
You are probably wondering what can be done to reduce the amount of energy and environmental impact associated with Bitcoin mining. In the next section of this article, we will discuss the steps some Bitcoin miners are taking to save money on energy and solve this problem.
Finding the Right Energy Provider is a Must
If you are looking for a way to reduce the cost associated with mining Bitcoin, your first order of business should be finding the best possible energy prices. Most Bitcoin mining business owners fail to realize there are tons of energy providers on the market. Using the power of competition to secure a better energy rate is crucial.
Finding essential electricity rates by state on your own is easy when using the power of the Internet. Some crypto-entrepreneurs make the mistake of settling on the first energy provider they encounter. This will usually lead to more money being paid for power, which is why doing your homework before choosing an energy provider is crucial.
The Rise of the HydroMiner
For years, eco-conscious business owners and entrepreneurs have been looking for renewable forms of energy to use for their operations. The Vienna-based HydroMiner is a gamechanger when it comes to using renewable energy for the purposes of Bitcoin mining. This system uses hydroelectric power to mine for cryptocurrencies.
The only problem with using this type of renewable energy technology is the initial cost. As this technology becomes more widespread, you are sure to see a significant price drop. Many governments around the world are getting into the renewable energy game and offering tax breaks for businesses that are embracing this energy trend. While the move away from traditional fossil fuels to renewable energy sources will take time, there is a different push to go in this direction.
Optimizing Your Bitcoin Mining Operation
Finding ways to make your Bitcoin mining operation more efficient and affordable should be one of your biggest concerns. The longer you own one of these operations, the easier it will be to spot problems and address them.