After Bitcoin’s explosive growth in 2017, a fever similar to XIX century’s gold rushes embraced the world. Thousands of crypto enthusiasts turned to mine in pursuit of huge profits it promised. Many built their own home-based farms, facing and fighting such challenges as:
- The high price of the equipment,
- Specific mining software configuration,
- The danger of wire overload,
- Huge amounts of heat produced by the farms,
- High level of noise,
- A constant need to upgrade equipment and increase power, as the difficulty of hash calculations increases,
- 24-hour monitoring.
There were some who turned them into advantages – for example, using servers for heating their houses during winter months. Still, building and maintaining a home-based mining farm remained a tricky business. In answer to the community’s demand, cloud mining providers started to appear to help new players try mining at a fraction of cost, time and effort.
Cloud Mining = More Profit?
Cloud mining services lease the equipment to miners according to the contract they buy. As a rule, mining in the cloud offers higher profitability. What are the reasons behind this? The equipment is more reliable, and the provider performs all the maintenance and monitoring, cutting the entry costs for new miners. Additionally, these systems use smart algorithms to choose the best strategy which would yield the highest dividends.
Still, the volume of energy consumption is colossal. This translates into a high cost of mining, up to the prospect of it becoming totally unprofitable in future – and into a serious ecological issue. Economist Alex de Vries estimates that in 2018 Bitcoin network alone will consume about 0,5% of the world’s electricity. It may not seem much at first glance, but according to Bloomberg, it is as much power per day as 30 nuclear power reactors would produce.
Given all the efforts we have put into protecting our environment in the last decades, it’s a huge throwback. The numbers above clearly show that we need to address the negative impact of mining on our ecology. And as the crypto community becomes aware of this, a new trend of smart mining services arises.
The New Age of Smart Mining
What is smart mining? In a few words, it is mining made most effective, with the help of the following strategies:
- Optimizing the mining equipment;
- Taking advantage of the local climate to reduce energy consumption;
- Using sources of renewable energy instead of fossil fuels.
Many developed countries are currently in the process of switching to ‘clean’ energy sources, fully or partially. Such countries as Canada, Iceland, Norway already offer very low prices for electricity from renewable sources. Sometimes even the smart location choice will allow cutting electricity costs at least twice from the world average. So apart from the evident benefits that smart mining brings to the ecology, it also helps personal enrichment, allowing for faster profit.
Our cloud mining service, Hashtoro, is also fully powered by renewable sources of energy. It makes us one of the most eco-friendly mining services of our time, and also gives our clients the benefit of paying the lowest prices for cloud mining contracts without losing the quality of service. Hashtoro’s team believes that while blockchain is the future of many industries, renewables are the future of mining.
In addition to that, we use miners with ASIC chips, which allow us to increase productivity substantially. By the end of this year, we also plan to start creating our own, fully optimized ASIC chips.
With the help of smart mining, we can be long-term efficient and aware at the same time – and nowadays being ecologically aware is a must. It is necessary for our personal wealth, our society and the world we all live in”.
About the Author
Alexander Petersons, product director of cloud mining service Hashtoro.com. IT specialist, serial entrepreneur. Started his professional career in small IT companies in Europe, then moved to America for several years. Worked on the development of mobile processors in Telecommunications equipment company Qualcomm (USA).
Since 2012, with a team of like-minded people been working towards creating their own cryptocurrency. Crypto-enthusiast, author of articles on IT and blockchain.
Education: Riga Technical University and Cass business school (The UK), MSc in Corporate Finance.