The Achille’s Heel of Digital Currencies
It is no secret that Bitcoin mining, as well as all cryptocurrency mining, is very power dependent. From the earliest days of bitcoin mining, reports, speculation and talk has been made in regard to the cost of the electricity used in digital currency mining operations.
While you may find slight variations in the numbers, depending on where you get the information, it is relatively close in terms of what is being reported. Bitcoin mining is using a lot of power. Besides the fact that it is already cost prohibitive for most people to mine the digital currency, the environmental impact is only getting worse.
In fact, a single transaction in Bitcoin uses enough electricity to power 6.78 homes.  On 22 September 2017, there were a total of 208,861 confirmed transactions.  These numbers represent the total amount of power consumed by bitcoin in a single day. Enough energy was used to power 1,434,875 homes or to put it in perspective; Bitcoin uses enough electricity to power than the entire city of Munich. The bad news is that the power needed to mine Bitcoin is only going to go up from here.
A New Approach to Efficient & Profitable Mining
As crypto-enthusiasts work on a solution to make ever-more efficient hardware, others scratch their heads to find a simpler solution. While everyone is working on or scratching their heads over better technologies, 2 Austrian sisters may have solved the problems in the Mountains of Austria. Nadine and Nicole Damblin have figured out a solution to, not only, lower power costs by 85%, but also how to “Go Green”, mining digital currencies. Stop scratching your heads boys, these girls have a solution that may just be the answer everyone has been looking for.
FinTech, as an industry is brand new, and has been dominated by men. As such, the approaches to the power consumption problem facing digital currencies have been handled like men handle those sorts of things; create bigger, better and more powerful technology. The Damblin sisters’ approach offers a new perspective and as it is already in full operation, is proven to be both cost-effective and much safer for the environment. All while turning a profit.
The Effective Green Mining Solution
When you look at the cost for a kilowatt of electricity, you must break down what the overhead actually is. Sure, you have employees to pay, equipment to buy and the cost to actually generate the electricity. However, the cost to deliver the electricity to your home or business makes up approximately 73% of the total KW/h charges. The remaining part of the cost of electricity is comprised of surcharges, fees and the actual cost of the energy itself. Obviously, fees and surcharges are not going anywhere, but the delivery fee can be looked at as a possible item to be reduced.
Nadine and Nicole did just that. They found a way to eliminate the delivery charge, all together. They simply set up their mining operation at the power plant. The fact that it is a hydropower plant, makes it even better, as hydroelectric power has much less of an impact on the environment. Plus, as an added benefit, the water used to generate the electricity needed is readily available and quite convenient as a way to cool their hardware. Power costs have been taken care of, efficiency has been obtained and what is left is an efficient, profitable mining operation capable of realizing profits 85% faster than a traditional mining setup.
It sounds a lot simpler than it actually is. For starters, the small, privately owned hydroelectric power stations in the Austrian Alps are not large facilities by any stretch of the imagination. In fact, in most cases, more than one or two people would have a hard time cohabitating the area, let alone mining hardware, cooling apparatus, etc.… The sisters conquered this hurdle, as well. They have designed an innovative set-up inside of sea freight containers that allows them to basically, drop a container next to the power station. The design of the mining set-up, allows them to adequately cool the equipment, and provide them with the necessary proximity to the station for this to work. Finally, they have developed proprietary software that gives them remote access to their mining rigs, making maintenance easy and minimizing hardware downtime.
Hydrominer is Born, Green mining is Here
The sisters, along with Sebastian Karns and Christian Vogl, have aptly named this endeavor, Hydrominer (Check our HydroMiner ICO). At the present time, Hydrominer is looking to scale their operations by opening more facilities in the Austrian Alps region. To do so, they are launching a digital token, the H2O Coin. This token will allow Hydrominer to take on investors, with the goal of opening new facilities. As with the approach to the power consumption problem, Hydrominer also takes a different approach to the ROI issues faced by digital currency miners. Instead of an investment being directly related to the hash rate of the hardware, they have opted for a simpler and more profitable approach. When you buy the H2O token, you are buying Watts of energy, not GH/s of hashing power.
With each new block found, the difficulty level goes up. This means that it takes more computing power for the next block. This increase will happen at every single block found. This is true with every digital currency. As such, the amount of profit per GH/s you have invested or currently mine becomes less over time. With Bitcoin, this is what has made it impossible to mine with a home computer.
Hashrate Depreciates in Value, Watts Do Not
When you invest in a mining operation, called buying a contract, you are essentially buying a certain amount of hashing power. As more of this hashing power is needed, more is created and added. This, in turn, lowers the overall value of each hash. When you invest with Hydrominer, you are buying watts of electricity. This will not fluctuate much, if at all. It doesn’t matter how much the difficulty of the cryptocurrency increases; the wattage being used doesn’t increase.
So, in addition to coming up with a very innovative and original way to successfully lower power costs in a mining operation and doing it I a way that lowers the carbon footprint left behind, the Damblin sisters and their team have also found a way to make the earnings more stable for not only themselves, but for investors, as well. They have tackled 3 of the biggest challenges in digital currency all in one shot.
To learn more about Hydrominer and the H2O token, which is in an after presale stage (they sold out 1500 Ether in less than 36 minutes), you can visit their website at HydroMiner.org. There you can download the whitepaper and find out more details on Hydrominer and the innovative technologies being implemented in their digital currency mining operations. Socrates said it best, “Once made equal to man, woman becomes his superior.”
 Source: https://blockchain.info/stats
- AgentMile Announces its ICO - Jun 27, 2018
- Problems the CRE Industry Can Address by using Blockchain Technology [Part 2] - Jun 10, 2018
- Problems the CRE Industry Can Address by using Blockchain Technology [Part 1] - May 30, 2018
- Introduction to AgentMile, a Decentralized CRE Leasing Platform Powered by AI - May 22, 2018
- Giveaway: 1x CB Blockchain Conference Ticket - Mar 17, 2018
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.
You have Successfully Subscribed!