Mining and Ecology. How Does “Green” Mining Work?

Cryptocurrencies such as Bitcoin are mined. The truth is that 10 years ago it was much easier to do, and miners (users who are engaged in mining) earned much more: the fact is that cryptocurrency mining is constantly becoming more difficult. There are more and more people who want to make money in this way and the complexity of the network and the mining itself is growing.

At some point, everyone understood: we need a new model of mining that will make it possible to make money on it. This is how cloud mining appeared – where you are mining cryptocurrency on rented equipment. Indeed, why do you need to buy your own expensive equipment, provide maintenance, cooling, noise insulation, if you can rent it? This is why companies like H2Hashes appeared, which offer their data-centers for rent. The users mine certain crypto coins using the power of the leased equipment, the difference between the cost of the cloud contract and the cost of the mined coins is pure profit. Thus, earnings directly depend on the volume of leased capacities: the more capacities you rent, the more you can earn.

However, both cloud mining and classic mining have their shortcomings – massive consumption of electricity and resources for crypto-mining. According to the Cambridge Center for Alternative Finance (CCAF), estimated annual electricity consumption by Bitcoin miners has grown by 80% since the beginning of 2020, from 71 to 128 TW/h in early March. By comparison, Australia’s main power grid used 192 TW/h of electricity in 2019. In 2021, this number increased by 40% due to the hype of cryptocurrencies. Even Elon Musk did not stand aside and asked miners from all over the world to switch their mining centers to geothermal renewable energy sources – solar, wind, and water energy.

Eco-mining is distinguished by the use of renewable energy sources: hydroelectric power plants or energy derived from the sun or wind. Do not forget about the problem of excess heat. It is inevitably produced by mining equipment and can harm the ecosystem. Scientists fear that due to mining, the average temperature of the Earth could rise by 2 degrees Celsius. At the moment, the only way to reduce the environmental damage from cryptocurrency mining is to use alternative electricity.

H2Hashes uses hydrogen and solar energy for cloud mining. The company combines all the key aspects of efficient crypto-mining: hydrogen and solar panels are the main components of an ecological mining system with highly profitable data centers. They provide environmentally friendly crypto mining. The company’s data centers are located in regions where “green” methods of electricity production are available. These are places with powerful rivers, enough sun for solar panels, and wind energy.