Cryptocurrencies have faced a lot of criticisms over the years for various reasons. One of the biggest criticisms is the amount of power it takes to mine crypto tokens. However, Soluna, a renewable power company might just change the mining game.
It is estimated that mining cryptocurrencies uses almost as much electricity as the whole of Ireland. Environmentalists have long complained about the effects of the ever-increasing cryptocurrency activities on the environment.
While this is a valid concern, several steps have been taken to cut down on cryptocurrencies power requirements including a purchase of a 37,000-acre in Morocco for the purpose of generating power for cryptocurrency mining.
Plans for Mining
The work on the site began over 9 years ago but after the management in charge of the project was changed, progress soon increased.
This project is being done in conjunction with a German wind-power firm ATLUS AG. The goal is to distribute power to a computer center that generates cryptocurrency.
This move is first in a number of plans to make crypto technology more energy friendly and renewable.
While the field will be producing up to 900 megawatts, the worldwide cryptocurrency network uses up to 2.55 Gigawatts of power.
The energy-intensive nature of crypto mining is perhaps one of the more difficult aspects of it and one that prevents many from mining in the first place.
It is extremely expensive as it drives up power cost exponentially and in some cases, eats into the profits of miners.
As a result of this, a good portion of crypto mining takes place in countries like China where power is cheaper.
However, this power is often produced through coal, which is counterproductive to environmentally friendly efforts being made by many countries in the western world.
Projects like these – power-generating plants dedicated to crypto token mining, could help significantly bring down the cost of mining as well as benefit the environment at the same time.
What’s the Goal?
For this alternative to be viable, the wind plant has to match the price of the currently existing sources of power that are favored by miners.
Its goal is to become as cheap as coal-derived energy in China.
CEO of Soluna, John Belizaire says,
“Assuming you can develop the power at the lowest cost, you by definition will always have the lowest cost, because no one is going to change your power price.”