The cryptocurrency community has seen extensive growth since its innovation in 2009. Even though it is still in the formative stage, as it is faced with the problem of volatile market and hacking alike, its mining had also constitute issues to the society. Cryptocurrency mining consumes a lot of energy, especially, the Bitcoin and Ethereum because of the mode of mining it. Mining requires a huge investment in expensive machines and also a regular source of power. Cryptocurrency mining is said to consume about 0.5 of the worlds’ power presently. This has created issues with host communities wherever they are located.
Solving the Cryptocurrency Mining Problem With Renewable Energy and Improving the Mining Technology
Cryptocurrency mining consumes 61.4 TWh in the world which is also equivalent to 1.5% of the electricity consumed in the United States. As cryptocurrency becomes more popular and accepted by institutions in months or years, the rate of power consumption is expected to increase. Presently cryptocurrency mining consumes 0.5% of the world power consumption. This shows it will be competing with the industrial system of the world in the next ten years if the menace is not addressed now.
Cryptocurrency mining has become issues to their host community as they share hydroelectric power with them. They consume more energy than the host community by increasing the cost of electricity. This situation has led to placing a moratorium on cryptocurrency mining in Salamanca and Pittsburgh and some other places in the United States. Some countries have banned it such as China.
For the cryptocurrency miner to gain profit, there is a need to have access to cheap energy for their mining process which is mostly not within their reach.
However the challenges facing crypto mining is already being solved in some countries such as Iceland, that has adopted the use of renewable energy. The use of renewable energy is highly beneficial to the society environmental space, as well as reduction of cost.
Some countries have embarked on wind energy such as building hydropower dam for crypto mining. However, this might not be a lasting solution to it but definitely is a step forward.