How might the cryptosphere be affected by the release of vast areas of ready-to-use electricity

  • 17:01 Feb 15, 2023
How might the cryptosphere be affected by the release of vast areas of ready-to-use electricity

Mining is gaining popularity in many countries around the world. Even in 2022, when the industry faced objective difficulties. Such as the bear market, the fall of BTC and the collapse of FTX, which had a huge impact on the crypto-industry.

Nevertheless, the demand for virtual coins has not stopped growing. And mining crypto, such as bitcoin (and its other «consensus» counterparts) requires more production capacity and space to build them.

Why is this happening? The complexity of bitcoin mining is increasing. And in order to mine a block and put it into a blockchain, more asics are needed. And that means more electricity.

We've written about how some manning companies are contracting with oil corporations to use associated petroleum gas (APG) as a source of needed power. But power plants such as wind and solar aren't losing their relevance either. Let's talk about that.

How Renewable Energy Affects Mining

Bitcoin mining has traditionally been considered a very polluting process because of the huge amount of carbon dioxide emitted into the atmosphere. How true is this statement? The question is debatable. There is an opinion that environmental actions against BTC mining are machinations of ill-wishers. And the mining of the first crypto does no more harm to the environment than cars do.

Whatever the case may be, the issue of alternative energy sources has become the most pressing for miners. Thus, huge areas are being cleared for the construction of environmentally friendly data centers for virtual coin mining. It also costs a lot of work to place solar panels. And in order for them to bring profit, they need a lot of them.

So how do green power plants affect the sphere of mining in general? Rather, it has a positive effect. If virtual coins are mined using electricity from wind farms, solar farms, and hydroelectric power plants, it is perceived by the public as a bold step towards improving the environmental situation on the planet.

There's a «but»

While renewable energy data centers are welcomed by society, we should not forget the downside.

First of all, in order to produce the same solar power plants, companies have to... also pollute the air. This type of activity is said to cause unnecessary damage to the environment.

The same is true for the manufacture of wind farms. The most inverse is the hydroelectric power plant. But it can not be built in all regions. Since not every city or country can have access to a powerful river.

And yet

The fact that big companies are striving to improve the environmental situation on the planet is undoubtedly a plus. And it makes sense to keep looking for the most appropriate energy sources that will not harm the environment.

The most successful experience in this direction, in our opinion, is the use of APG and natural gas for mining virtual coins such as BTC (and the like).

Wind farms as a chance for the development of the mining industry

The fashion for this method of generating electricity came from the West. The first wind power station was designed back in 1887. The author of the invention and the idea was Mr. Blyth, a man from Great Britain.

It took a year before this discovery was taken seriously, and already in 1888 the American Charles Brush launched a wind power station, which began to bring the man an income.

Now the use of such units is very common in Europe and on the North American continent. Huge areas of land are being cleared for these giants. To make wind farms give more profit, they are located 20-100 units in one place.

But for one person who decides to go mining in his backyard, a couple of them will be enough.

The main problem with wind turbines

The weather here is obviously unpredictable. No wind means no electricity. And the arrival of the coveted kilowatts is unstable. Even though wind farms have special accumulators that allow them to distribute energy, ensuring stable operation of the system, all this may still not be enough for full-fledged electricity production.

What they say about renewable energy

Adnan Z. Amin, director general of the International Renewable Energy Agency, Abu Dhabi, United Arab Emirates, believes that the global energy sector has been transformed for the better. And this is largely due to renewable energy sources.

The expert notes that climate change is a reality that everyone will have to face.

And it is. Whether you are an office clerk, a businessman or a miner – environmental problems concern everyone.

According to Adnan Z. Amin and other analysts, renewable energy can help cope with global warming. This is especially true in the field of virtual coin mining.

If everyone does his or her part, it will be possible to preserve the pristine beauty of nature. Even if we have to make some sacrifices. For example, to use the electricity of environmentally friendly power plants for mining.

Bottom line

Every year the mining industry takes thousands of hectares of land. On it are built data centers, «farms» for mining virtual coins, stations for obtaining electricity.

On the one hand, the construction of such facilities develops the region. On the other hand, it pollutes it. To minimize the impact of mining on the environment is used already prepared electricity, which is waiting for the consumer in solar panels, wind turbines, hydroelectric power plants and so on.

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