фото показано с : blokt.com

With crypto prices still way below their December 2017 all-time highs, cryptocurrency miners are under increasing pressure to squeeze out profits from their operations by reducing expenses. Since the mining process is a very energy-intensive affair, one way of keeping mining costs down is by obtaining cheaper electricity.

This need for cheaper electricity is, in fact, one of the reasons why Iceland and its Scandinavian neighbors recently became favorite destinations for crypto-mining firms. But there is a new trend that’s being explored by a few companies, and that is to build their own electricity infrastructure in power-rich locales closer to home.

For instance, Canadian firm DMG Blockchain is opting to build its own fully functioning electrical substation. According to Motherboard, the facility is located in Castlegar, a town in Southern British Columbia, and will be used to power its expanding operations. While the substation will cost the company millions of dollars to build, the firm hopes to recoup its investment by taking advantage of the lower power rates.

There is also one advantage in putting up crypto-mining operations in the area. The place is powered by hydroelectricity, which means that firms can claim that they environmentally friendly.

Speaking about the substation, Steven Eliscu of DMG Blockchain’s corporate development group said:

“At the end of August, we’ll go through a commissioning process where the utility will test everything as a completed substation and make sure that the town doesn’t blow up when we flip the switch.”

At the moment, neither DMG nor FortisBC, the local utility in Castlegar, is willing to discuss the specifics of their deal. However, it is probably safe to assume that DMG will get a nice discounted rate for the mining firm to willingly fork out cash for such a large undertaking.

The cryptocurrency industry is a very power-hungry sector. Currently, just the process of mining Bitcoin and keeping it on a blockchain alone consumes a ridiculous amount of electrical power that is comparable to the energy consumption of the European nation of Austria.

But the problem lies in the fact that the cryptocurrency industry’s power demand is only bound to rise in the years ahead. According to estimates, the industry’s energy needs will surpass all the countries in the world by 2020, which might jack up power rates by then. Securing a cheap, renewable source of energy this early in the game is indeed a wise business move for miners.

Canadian Crypto Miner Tries New Approach to Cut Down Power Costs was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

354 +