Hi to all! I was commenting but I haven’t publishing here for long time... Now, I am back!
Today I was checking my comments since 2020 until today and I realised that, besides my articles, I have written in total 289 pages of comments here! That’s equals the size of a big book! :)
So, as promised to friends here, today we will write about: "All You Need to Know About Sustainable Bitcoin & Crypto Mining".
Actual Context
Mining Bitcoin is actually not more damaging to the environment than mining preciuos metal and any of the metals and minerals used in EV, airspace and other industries. However, my research indicates (see References at the end) that Bitcoin's climate damage averages around 35% of its market value, significantly higher than gold. That’s why, besides cryptocurrencies, I invest in gold bars and coins.
In contrast, the extraction of minerals for EVs, such as lithium and cobalt, also incurs environmental costs, including habitat destruction and significant water use. Thus, while Bitcoin mining seems damaging, the environmental impacts of mining for EV components can be equally concerning.
The discussion highlights the need for sustainable practices. So, what role do renewable energy sources play in sustainable Bitcoin mining?
Renewable energy sources play a crucial role in sustainable Bitcoin mining by reducing the industry's carbon footprint and enhancing energy efficiency. Recent studies indicate that over 54.5% of Bitcoin mining energy comes from renewable sources, including solar, wind, and hydroelectric power, which helps stabilize power grids and utilize underused energy sources.
Bitcoin mining can also monetize excess of renewable energy, providing financial support for new clean energy projects. This synergy allows miners to act as flexible energy consumers, absorbing surplus production during low-demand periods, thus supporting the overall growth of renewable energy infrastructure.
Mining rigs can be powered by renewable energy sources to enhance sustainability in mining operations. In the last years, high-tech rigs are increasingly being developed to promote sustainable Bitcoin mining. However, be aware that the costs of such rigs aren’t accessible to masses!
Companies that are Manufacturing Mining Rigs
Some of the best sustainable crypto mining rigs focus on using renewable energy sources. Notable companies include:
- Compass Mining - Supports decentralized mining with various hosting options.
- Bitfarms - Utilizes hydroelectric power for its mining operations across multiple facilities.
- Hut 8 Mining - Operates high-performance data centres powered by nuclear and hydropower.
- Genesis Mining - Offers multi-algorithm mining with a focus on sustainability.
These companies emphasize eco-friendly practices in their mining operations, addressing environmental concerns associated with traditional mining methods.
Their innovations include:
- Immersion Cooling: This method submerges mining equipment in coolant, reducing energy consumption and extending hardware lifespan while maintaining optimal temperatures.
- Renewable Energy Sources: Many miners are transitioning to solar and wind power, with over 54% of energy consumption now from renewable sources. This shift not only reduces carbon footprints but also stabilizes energy costs.
- Green Hydrogen Integration: Pairing mining operations with green hydrogen can enhance renewable energy deployment, making the mining process more sustainable.
Sustainable Mining Countries
This section is inspired from Cryptosensei’s article: https://www.publish0x.com/cryptosensei/sustainable-bitcoin-mining-xvzlgnd
- Iceland: Bitcoin mining is environmentally friendly in Iceland because it has abundant geothermal energy.
- Norway: the biggest Bitcoin mining hub in Europe because it has abundant hydropower.
- ElSalvador: has used geothermal power from a volcano to mine nearly 474 bitcoins since 2021.
- Texas: there was an attempt to create a Bitcoin mining wind farm.
- Canada: there was an attempt to use hydroelectric power for Bitcoin mining.
- Finland: in June 2024, Marathon Digital Holdingslaunched a pilot project that aims to recycle heat generated from a 2-megawatt digital asset data center in Finland to reduce carbon emissions.
- Romania: Reitis Capital Development plans to improve the viability of renewable projects and to help stabilize power grids, when feasible. Reitis will deploy Bitcoin miners near sustainable sources of power, which may include solar, wind, hydro, and bio fuel.
Sustainable Mining Rig Categories & Models
Sustainable crypto mining rigs can be categorized into several types, each with specific models known for their efficiency and eco-friendliness:
ASIC Miners:
- FutureBit Apollo II Full Node: One I like the most, but be aware that solo miners hardly will make some Bitcoin!
- Bitmain Antminer S19 Pro: Highly efficient for Bitcoin mining.
- MicroBT Whatsminer M30S++: Known for high hash rates and energy efficiency.
GPU Miners:
- Nvidia GeForce RTX 3090: Versatile for multiple cryptocurrencies.
- AMD Radeon RX 5700 XT: Popular for its balance of performance and power consumption.
FPGA Miners:
- Xilinx VU9P: Offers flexibility and lower power consumption compared to GPUs.
FutureBit Apollo Rig
I read somewhere: “If one lives near a waterfall and can transform the energy of the water that falls into electrical energy and with that feed a small rig to mine Bitcoin, and with that cover his/her expenses, isn't this wealth?”
There are already several solutions in the market to think about Bitcoin's private mining. The FutureBit Apollo Mining Device is the one that I liked very much but you can find other very good sustainable mining rigs.
These video explains in detail what this device can do, but he says: don’t try it at your home! To make it profitable you must start a farming pool: https://www.youtube.com/watch?v=iXICulaZYrg
Here is another opinion on FutureBit Apollo Miner, miming at home: https://www.youtube.com/watch?v=i8M6mcZySsQ
The FutureBit Apollo II Full Node contains the wallet, the node, and the miner in a single easy-to-operate device. It is thought just for those who fear the centralization of mining in large pools.
View the above videos, decide the type you want to buy, and then check these sources:
Shop Futurebit Miner, 700$: Full Node Apollo Package - Desktop Class Controller with 1TB NVMe Drive and 200W PSU: https://shop.futurebit.io/collections/all
Power supply, $80: https://shop.futurebit.io/products/pre-order-futurebit-apollo-200w-power-supply-shipping-july
In Europe, Bitshopper, 899$: https://www.bitshopper.de/en/shop/sha-256-miner/standalone-miner-bitcoin/futurebit-apollo-btc-miner/
Final thoughts
I was mining Bitcoin in 2013-2014 with ASICs, and other cryptocurrencies with GPUs. But, I have stopped after 2 years of mining as it was not profitable anymore. I had to buy expensive rigs, but they do not bring you profit if you mine at home and do not have serious renewable energy sources. Now. our Team is planning to build a sustainable Bitcoin mining farm.
Enjoy, comment, and thank you for reading!
Teodor
References
- What is a Mining Rig? - Klever Wallet https://klever.io/en-us/blog/crypto-mining-rig
- Crypto Mining Rig 101, 2024 Guide - https://woolypooly.com/en/blog/crypto-mining-rig
- Unlocking the Power of Crypto Miner Rigs - https://www.linkedin.com/pulse/unlocking-power-crypto-miner-rigs-dcentraltech
- Mastering the Art of Crypto Mining in Canada: https://d-central.tech/mastering-the-art-of-crypto-mining-in-canada-unveiling-the-best-rigs-for-maximum-profit/
- 10 Best Cryptos to Mine in 2024 - Koinly https://koinly.io/blog/best-crypto-to-mine/
- Study shows that Bitcoin climate impact greater than gold mining: https://www.theguardian.com/technology/2022/sep/29/bitcoin-climate-impact-gold-mining-environmental-damage-cryptocurrency
- Nasdaq, A Comparison Of Bitcoin's Environmental Impact: https://www.nasdaq.com/articles/a-comparison-of-bitcoins-environmental-impact-with-that-of-gold-and-banking-2021-05-04
- Comprehensive Guide: The Best Crypto Miners for Mining at home https://www.linkedin.com/pulse/comprehensive-guide-best-crypto-miners-mining-home-dcentraltech-5ah2e
- Green Bitcoin Mining Companies - EZ Blockchain https://ezblockchain.net/article/green-bitcoin-mining-companies/
- Profitable Crypto to Mine - List https://www.tokenmetrics.com/blog/best-crypto-to-mine
- Bitcoin Mining Catalyzes Growth In Renewable Energy and Infrastructure https://www.forbes.com/sites/digital-assets/2023/10/18/bitcoin-mining-catalyzes-growth-in-renewable-energy-and-infrastructure/
- Can Bitcoin mining really support renewable energy? https://www.theverge.com/24112638/cryptocurrency-bitcoin-mining-renewable-energy-hydrogen-study
- Can Bitcoin mining empower energy transition and fuel sustainable: https://www.sciencedirect.com/science/article/abs/pii/S0959652624002464
- Bitcoin mining's green mile, 54.5% sustainable energy use: https://forkast.news/bitcoin-minings-green-mile-54-5-sustainable-energy-use/
- Bitcoin mining boosts the transition to renewable energy: https://cointelegraph.com/news/bitcoin-mining-renewable-energy-transition
- The Green Frontier: Bitcoin Mining's Path To Sustainability and Profitability: https://www.forbes.com/sites/digital-assets/2023/11/06/the-green-frontier-bitcoin-minings-path-to-sustainability-and-profitability/
- Green Bitcoin Mining - Samara Asset Group: https://www.samara-ag.com/market-insights/green-bitcoin-mining
- Solar-Powered Bitcoin Mining: Green Energy For Profitable Crypto: https://ezblockchain.net/article/can-you-mine-bitcoin-with-solar-power/
- Bitcoin mining is becoming environmentally friendly: https://cointelegraph.com/news/bitcoin-mining-becoming-more-environmentally-friendly
