It is widely known within the crypto-community that cryptocurrency mining is an energy-intensive business.
Its energy usage has been said to surpass the national consumption of countries like Switzerland. With blockchain and cryptocurrencies being the great gold rush of the 21stcentury, miners and investors cannot ignore this notable consideration in the blockchain supply chain.
SOME INTERESTING CRYPTO-FACTS
- Electricity is said to account for 60% of mining revenue.
- The Bitcoin network uses around 64TWh of energy – more than Switzerland.
- Bitcoin is responsible for 0.25 of the world’s electricity consumption.
- Bitcoin processes fewer than 100 million processes per year.
- Annual carbon emissions from the network are said to be 22.9 million metric tonnes.
WHY DOES CRYPTOCURRENCY USE SO MUCH ELECTRICITY?
It is one of the great advantages of cryptocurrencies which account for its energy appetite. While decentralised computing systems enhance safety for users, this contributes to its energy-hungry nature. In a system of tracking and verifying transactions, mining blocks of transactions is both central to the workings of cryptocurrencies and incentivised, making this an exciting prospect for members of the crypto-community.
WHY MINERS SHOULD THINK ABOUT ENERGY
Sustainability It was reported at one time that, at the current rate of consumption, cryptocurrencies would deplete the world’s energy sources by February 2020 (if this is right, we are in very big trouble). Whether this turns out to be the case or not, the sustainability of energy usage is impossible to ignore given the importance of environmental considerations. A study has shown that the network predominantly uses clean energy sources. If you haven’t already, looking to alternative, renewable energy sources and strategising around energy usage is critical to this.
Cost There are myriad reasons for the success of cryptocurrencies around the world. The main attraction is obviously the potential for sometimes enormous profits. This makes your expenses as important as ever. With electricity a significant expense for miners, it is essential to shop the energy market for the best tariffs, but also the contracts which are best-suited to your activities.
ROI Mining is a time sensitive thing, with levels of difficulty and profits in a constant state of flux. You are putting in time and money to nurture your investment. Around the world, miners are looking for the best energy deals. Failing to actively source the right energy solutions means you simply won’t get the same return on investment as other miners.
ENERGY BEST PRACTICE
Do your research If you are looking to enter the crypto-world, find out as much as you can about the different elements of blockchain and how it works.
Be active Take the time to really understand the energy market, explore the different options, and secure the best deals. This should be an ongoing process.
No man is an island Taking the time to do the legwork around energy management for the crypto-community can be immensely time consuming. Working with energy procurement specialists can have notable advantages. Their industry knowledge can translate into meaningful advice based on your unique circumstances. Their advice can become the basis of successful strategy. Their insights can equate to real value for your portfolio.
The team at Smarter Business is geared to provide essential energy services to the crypto-community. To explore the best options to power your investment, click here.