Cryptocurrency mining used to be a profitable business for anyone who ventured into it . It didn’t even require costly specialized hardware. However, as increasing numbers of people dove into the market with a vision of incredible short-term gains, mining became more difficult. The more people mine, the harder the process is. Nowadays miners need powerful systems and graphics cards to stay profitable. Indeed, the mining industry is attracting bigger players. With cryptocurrency hydro mining, there is going to be a bigger difference between professional mining and the short-term attempts of amateurs.
Table of Contents
How to stay competitive in mining cryptocurrency
A couple of years ago individuals mined cryptocurrency on their personal computers at home. But the industry has evolved and grown into large-scale mining farms. To stay competitive, there isn’t any room for individuals for mining anymore – it simply became too expensive. The specialized hardware and energy costs are probably the biggest concern of miners today.
The electricity usage of big mining farms has increased and many parties disagree with the current model of how cryptocurrency works. They argue that mining causes significant damage to our environment because of the high consumption of electricity generated by conventional means.
The truth is that Bitcoin and Ethereum mining consumes about the same amount of energy as Morocco, a country with a poopulation of 36 milion. Doesn’t that sound insane?
A single Ethereum transaction consumes about 53 kWh. In comparison, a standard dishwasher consumes less than 300 kWh of energy per year. Just five Ethereum transactions consume more energy than using a dishwasher for 12 months. To give you the whole perspective, nowadays we make around 300 thousand Ethereum transactions per day. The energy consumption is thus unbelievably high.
An eco-friendly strategy in the form of cryptocurrency hydro mining
Unfortunately, Bitcoin is even more energy-hungry than Ethereum.
In recent decades we have become more environmentally conscious. From an environmental standpoint, we have to move to an eco-friendly energy source, generate energy from renewable sources and minimize our carbon footprint.
Hydro mining is a way how to mine cryptocurrency in an environmentally friendly way. It uses hydropower to fuel its mining operations. Using water for creating energy is one of the traditional ways of generating electricity but it has become more popular due to the carbon neutral status and its renewable characteristic. Moreover, using water to cool down mining equipment reduces costs as well.
Advantages of cryptocurrency hydro mining
- cheap hydroelectric power
- water cooling
- enhanced performance
- cost savings
Mining requires powerful computer equipment put under extremely high loads. Overheating and downtime are real problems for miners. Any downtime means losing money. The mining rigs are as efficient as they are reliable.
Hydro mining has enormous advantage because the mining rigs and processors are easily kept at stable optimum temperature levels. Miners have a reliable mining environment with minimum downtime and the cooling costs are much lower than what conventional miners pay. Also, the performance of mining equipment can be optimized for the highest possible mining power.
The cost of electricity is also one of the biggest overhead for miners. That is the reason why the majority of bitcoin miners are based in China. China can offer the lowest price for electricity. In Europe or other western countries, hydro mining is getting more popular due to cheaper costs of energy consumption than inconventional mining. It might be the way how to increase the number of mining rigs in the United States and Europe and hopefully challenge the majority of hashing power in China.