Cryptocurrency is fast gaining mainstream prominence thanks to the spread of information about its potential as an investment avenue. The rise to prominence of cryptocurrencies has further been augmented by billionaires acquiring cryptocurrency and significant industry players allowing cryptocurrency purchases. However, cryptocurrency comes with a significant uncertainty; how sustainable is the mining process to acquire cryptocurrencies?
What is Cryptocurrency Mining?
You probably wonder where cryptocurrencies come from. The process of acquiring and creating new cryptocurrencies using robust computer systems and solving complex mathematical equations is cryptocurrency mining. The mining process is energy-intensive and requires regular checks on transactions since crypto is a decentralized system.
Solving the complex computational math during cryptocurrency mining requires highly sophisticated computer systems that run on enormous power. The decentered system also calls for systems that allow miners time and space to monitor transactions carried out as part of the constant maintenance in cryptocurrency mining. All these activities require a tremendous amount of electricity to run, which is why the question of mining sustainability arises.
Energy Consumption: The Constant Concern
Mining cryptocurrencies is a power-intensive exercise that has led to heated debates on the sustainability of the entire practice. The mining modules used to solve the highly sophisticated math and create new crypto coins require a constant power supply to power them up, cool, and store them. In many instances currently, a crypto mine is run on fossil fuels sourced from cheap places, raising concerns about the impact crypto mining has on the environment. However, there is a new and improved way to operate a crypto mining farm and many companies are taking the initiative to establish sustainable practices.
Players in the financial regulation field and energy suppliers have recently raised a concern on how much energy crypto mining consumes, yet they make up a small fraction of transactions on the global stage. In a recent report, Bloomberg intimates that crypto mining modules and machines around the globe use as much energy as Bangladesh, a country with over a 150million citizens. A report by Cambridge Bitcoin Electricity Consumption Index estimates energy consumption by crypto mining above the energy consumption of countries like Malaysia and Sweden.
There are specialists that create modern and highly efficient data centers aimed at providing next-generation mining services while not increasing operation costs. The centers are energy efficient and can deliver services anchored in sustainability. With such facilities, mining can be done on a large scale without using excessive power.
The energy consumption of crypto mining is huge, as indicated. However, there are efforts to achieve a sustainable mining practice. Cryptocurrency mining is a sustainable practice if the right approach and efficient machines are used.
Cryptocurrency Mining: Sustainability Efforts in the Industry
Cryptocurrencies are going to stay with us for a long time. The reason for this is the many benefits it brings to business owners, such as security, speed, and low cost of transactions. Cryptos are being embraced all over the world, and with the increase in demand comes an increase in trading and mining platforms. Many individuals are getting into crypto mining, and the industry is facing a period of exponential growth.
However, the growth must be spurred by sustainability in crypto mining. All miners have to recognize the need to use clean and recyclable energy to create and miner new cryptocurrency coins. The crypto market players need to embrace new technologies and strategies to keep the industry running while sustainability stays at its core.
Miners are taking to a number of positive and promising initiatives to achieve sustainability of crypto mining and improve the energy efficiency of how they operate. One of the initiatives used to this effect is using green and renewable energy sources in the mining process. Not all miners are using fossil fuels to mine new coins, and statistics show that there is a shift towards sustainable power consumption in bitcoin mining. There are new players in the mining industry who are constantly on the lookout for green sources of energy capable of driving the mining exercise.
Cryptocurrency mining has been largely seen as an unsustainable exercise. The root of this assumption is the fact that most miners use fossil fuels, and mining consumes a lot of energy. However, cryptocurrency mining is a sustainable exercise with the rise of new technology and the usage of green and renewable energy sources.