It’s no news that crypto mining is expensive and energy-intensive. A substantial amount of computational energy is utilized to solve those complex cryptographic equations and validate blocks. Due to the high energy consumed by these mining pieces of equipment, several countries are looking for ways to maximize output without depending on non-renewable sources.
Countries have expressed their worries over crypto mining operations and how they have almost led to blackouts. This year, Kyrgyzstan shut down several illegal mining facilities after it experienced episodes of blackouts.
An analysis from the University of Cambridge reveals that Bitcoin mining uses more electricity than Argentina or the Netherlands.
According to the Bitcoin electricity consumption analysis, mining the flagship digital currency takes about 122.87 Terawatt-hours of power.
Mining Ethereum uses more power than Belgium or Finland. Unfortunately, the amount of energy required to create blocks is now rising, as it’s becoming more difficult solving the mathematical puzzle.
One significant factor that led to the Chinese crypto mining crackdown was high energy consumption. China relies majorly on coal power, which affects the power distribution and generates lots of heat. The crackdown triggered the need for more sustainable mining activities.
Mining Firms Look Towards Green Energy
Bit Digital and Marathon Digital are some of the mining firms planning to go green soonest. Marathon Digital is eyeing zero-carbon emissions in the next couple of years, so is E.V. Battery Technologies.
Recently, E.V. Battery Technologies launched a green energy program known as Daymak Solar Tree to boost environmentally-friendly mining activities. The blockchain battery company also partnered with the Renewable Obligation Base to improve sustainable crypto mining activities.
Another U.S.-based mining company Riot Blockchain Inc. also rolled out its plan to maximize crypto mining efficiency through renewable sources. The BTC mining firm enrolled for a resource program in Texas to make mining environmentally friendly and sustainable.
Bitcoin nation El Salvador is leading the charge for green energy mining in Central America. The country, which became the first to legalize the use of Bitcoin, revealed that it would use volcano power to mine the flagship currency in a bid to mitigate the effects of crypto mining on the environment.
This crucial step taken by El Salvador showcases the influence of Bitcoin as a catalyst for renewable energy development. Volcano power, also known as geothermal energy, is pure, renewable, and won’t affect the country’s power grid.
Bitcoin Hashrate Still Recovering
Recently, BTC hashrate reached a new high since its 50% drop in May due to China’s clampdown. Since then, the hashrate has recovered by almost 93%, striking 172 hexahash/s. However, the processing power is still 4% behind its A.T.H.
BTC miners have locations such as Kazakhstan, Russia, and the United States to thank for. The U.S. emerged as the biggest beneficiary in the crackdown saga and now controls more than 35% of BTC mining globally.