While Bitcoin is growing and miners are increasing their mining capacity, the question “What is happening to our most valuable resource – the environment” remains open. Is it true that mining is a threat to the environment? If yes, what can we do about it?
Mining is the process of ensuring the operability of the network of some cryptos, which requires significant resources in the form of computing power. Miners are users who ensure the “validation” of transactions, the decentralization of the network, and its protection from unauthorized access and changes. They receive a reward in cryptocurrency for their work.
The profit of miners depends on three components:-
The number of mined coins. This important indicator of a miner’s earnings is based on the equipment’s power, the difficulty of mining, and the size of the reward.
Cryptocurrency prices. The market forms the prices for cryptocurrencies, and the miners cannot influence it in any way. Unless, of course, they are the owners of a large number of coins and wish to sell them at a time.
Cost of equipment and associated costs (electricity costs, equipment maintenance, Internet fees, etc.). Maintenance costs can significantly reduce all income, especially without special knowledge. This is one of the main disadvantages of mining.
Cryptocurrency mining requires huge amounts of electricity, most of which is currently produced by processing fossil fuels. In the past, Bitcoin has been repeatedly criticized due to its high power consumption. For example, in 2019, cryptocurrency mining worldwide used about the same electricity as the Philippines. For clarity, imagine how much electricity is required so that you can watch Netflix videos for 50,000 hours. This is the amount of energy it takes to withdraw bitcoin from a BTC wallet simply. Just one transaction.
Last year, Elon Musk criticized digital gold for its environmentally unsustainable mining. China imposed a restriction on crypto-mining, which caused a massive migration of miners from China. Most ex-Chinese mining farms are now in cooler and more “tolerant” countries.
What Can We Do Here?
Choose alternative ways to generate electricity: solar panels, hydroelectric power plants, wind, and geothermal sources. The experience of companies like GreenHashes, which are interested in improving the environmental situation, shows that we can reduce their negative impact on nature. Mining on “clean” energy sources is the future of cryptocurrencies.
GreenHashes company provides cloud mining services: you rent power from the company by purchasing one of the contracts on the site. Leave all the care and maintenance of the company’s equipment while you accumulate cryptocurrency in your wallet. The company moves with the times and provides environmentally-friendly mining using renewable energy sources. The user only needs to select the desired contract (for 2, 4, and 8 months) and pay for it with Bitcoin. The platform is suitable for both beginners and professional investors.
In case of any questions about the service or suggestions, write to [email protected], & technical support specialists will answer all the questions and guide the new joiners in the world of eco-mining. Do not forget to ask them about your Referral level and income from such a program. To keep abreast of the latest news about mining and cryptocurrencies, you can join the official Greenhashes telegram channel and subscribe to the company’s social networks, where you can find a lot of useful information on investments and eco-friendly mining.