One of the most important concerns about cryptocurrency mining activities is that they are very power consuming. Indeed, most of the crypto mining farms located in several countries are taking important resources previously used to power industries or cities. Additionally, this activity consumes more energy than many countries around the world. As of January, the total consumption of cryptocurrency mining activities was higher than 159 countries.
Japan Uses Solar Power for Crypto Mining Activities
Crypto mining farms are trying to reduce costs and consume as less energy as possible, but sometimes the task is very difficult. Japanese miners are trying to consume a cleaner energy and make mining activities more sustainable in the long term. The local power producer Kumamoto-Energy, has announces that they will use solar power for mining cryptocurrencies.
Saburo Takashashi, Security Analyst at Kansai Electric power said about that:
“This is a time for improvisation, mining won’t go away fro the next years, efficient renewable sources of energy are the only way that cryptocurrency mining will be profitable in the future.”
Kumamoto-Energy has announced that it has established a new affiliate company known as “OZ Mining.” The intention of this company is to use the excess of electrical power that comes from solar generation plants to mine cryptocurrencies. This energy company has been working with other electric enterprises to run “mega solar plants” in Kumamoto Prefecture.
Besides that, Kumamoto-Energy added that OZ Mining buys electricity from them at ¥10-19/kWh. The price may vary due to different reasons, including location, supply area, contract agreement, seasons and other regulations. Kumamoto-Energy is also working in order to sell elaborate systems that are very efficient for cryptocurrency mining activities.
Energy Consumption for Mining Activities
In China, the most important cryptocurrency mining company, Bitmain, has decided to move its operations to other countries. The Chinese government has been imposing different measures for these enterprises to reduce their activities in the country.
Around the world, crypto mining activities consume less than 1% of the world total energy consumption. But, at the same time, some experts predict that cryptocurrencies are here to stay and when they will reach their peak in the future, the consumption will be much higher. If businesses do not find a way to reduce the impact on earth and to produce cleaner energy, it can become a problem for next generations.
The energy company is expecting that once they will start offering solar energy fro mining activities, other companies will join the mining process, making it a more affordable and profitable activity.
Japan and Kumamoto-Energy are doing what is possible to improve the efficiency of the energy used in crypto mining activities. The current challenges for clean energy are complex. It is more expensive than traditional energy sources, it is unevenly distributed, it is still being developed and it has yet a lot to improve.
Once these challenges are addressed and the impact of renewable energies in the society is bigger, then, mining activities will be more effective, less harmful and ready to spread all over the world without causing such a negative impact.