Is Solar-Powered Bitcoin Mining the Future?

In 2017 Bitcoin proved to be worth investing in it. Nowadays more and more people want to mine it. But the problem is that Bitcoin mining consumes a big amount of electricity by special software that look for the right hash keys to mine Bitcoin. Some miners from Iceland have launched a business of using the geothermal power, but most of the world is trying to cut down the electricity expenses.

The Idea Is Not New

Yet, the most discussible way of running the operation of Bitcoin mining is the solar power. Bitcoin and this energy source have a quite long relationship. In 2012 one forum conversation on Bitcointalk.org wrote up the setup of mining operation based on the solar energy in Australia. Back then Bitcoin was not on the wave of popularity and some in the financial world had become disillusioned with cryptocurrency. But mining-powered by solar energy was anyway being discussed on the internet.

For instance, in 2013 a cryptocurrency fan published a guide on building the mining plant, powered by the energy of the sun. In 2015, one more Bitcoin fan downloaded a video on Youtube to boast of his solar power mining farm. They reported that the power their S3 Antminer consumes was fully compensated by the power of solar energy through the solar panels.

Bitcoin started attracting a lot of attention in the middle of 2017. This year the user of Reddit informed about their solar mining operation in the Southwest desert. They unraveled, that their every miner was creating .007 Bitcoin every day by virtue of the solar power. This team was also searching for the ways to increase the mining rigs number because the process developed so successfully.

The user made an observation, that Antminer S9 ASICS mining system was worth near $1,225 at the present writing. Each mining operation cost $8,000 together with 6kW solar panels, deep cycle lead-acid batteries, and a power control system.

The sum of $8,000 may seem to be high. But some people think that the power of sun really could make mining more competitive. Nowadays the majority of mining operations is provided by huge companies with incredibly powerful machines. The small mining firms or individuals are in the past. That is why some cryptocurrencies of the future become resistant to ASIC.

The Electricity Issue

Bitcoin mining is mostly centered around (or blocked) by the prices of electricity. Thus, the solar power has the huge potential to turn mining into an easier and more accessible process, especially given the fact that solar power is gaining more popularity.

There is a presumption, that mining companies could use the renewable energy tax credits. It can happen if they take advantage of solar panels in order to power their operations. This probably could offset some part of taxation load connected with Bitcoin selling.

Tam Hunt of Greentechmedia counted in September that one 1-megawatt project of Bitcoin mining could be worth no fewer than $9.3 million dollars. In addition, a 20-year net revenue of near $19 million. These calculations were made on the basis of a Bitcoin price of $2,500. The price of Bitcoin has considerably increased since then. These calculations are looking quite good in comparison to the common 1-megawatt solar project. It is worth on average $200,000 to $400,000.

The Benefits

Bitcoin miners, that power their firms with the solar energy, make extra money when connecting solar panels to a power grid. It helps them to sell excessive energy to the utility company.  This method can come into play if one grows cold to Bitcoin or if the Bitcoin value goes down or even collapses. Actually, many people already managed to save money by installing solar panels on the roof.

Prospective miners could benefit from the lack of mining approval requirements in states like Texas. They could install solar panels and equipment for mining as soon as they buy a land there. Rural areas are the best place for solar panels.  They occupy a large territory and the prices on the land are low there as well.

The solar energy gets more and more famous across the populations and nations. So there is no wonder that bitcoin miners want to take advantage of it as well. It is pretty simple to buy and install the solar panels.  They are constantly improving with the change of technology. Solar panels make the miner’s operations flexible, while they can install them wherever they want, even on the transparent surfaces.

In course of time, the algorithm of Bitcoin mining gets more and more complicated. One researcher assumed in 2016, that a continuous electricity consumption of Bitcoin plants can reach the total output of a little nation like Denmark by 2020.