Bitcoin Mining Via Solar Power: Risks, Rewards And More Profitable?
Better To Mine Bitcoin With Solar?
A great deal of energy goes into mining bitcoin cash and bitcoin core due to the amount of power necessary to keep ASIC machines going. So much power is needed that people have started raising the issue, which is that the money spent on electricity to mine is more than the money made from the process.
An alternative solution is to use renewable energy resources power the technology necessary for mining. Christian Anders, who describes himself on his Twitter account as a “Bitcoin OG & NFT Avant-Garde. Founder of BTCX, western Europe’s first bitcoin company and Blockchain AB” recently tweeted that his solar-powered bitcoin-rig made the news. The tweet linked to a recent Bitcoin.com article, which discussed the project.
Therein, Anders explains that it was more profitable for him to use excess solar power to mine bitcoin, than to sell the excess power to the power company. He stated, “Time to start your miners tonight almost free energy in Stockholm tomorrow — instead of selling my surplus solar energy, I mine bitcoin,” Ander remarked. “1 kWh = 1,16 Kr($0.12) — That is more than 10 times the money if I would sell it to the grid. Using the most common miners on the market ($100 each which convert 1,3 kW -> BTC).”
Christian’s approach to using solar power to mine is not new. For instance, a company called Plouton Mining is reportedly developing a massive solar Bitcoin mining facility in the Mojave Desert, located in California. The company’s co-founder Sammy Del Real, interviewed with CryptoSlate and shared insight into the project. He shared the barriers that electricity costs posed and as a result, he started looking into desert land to begin the current project.
When asked why he chose solar power over other forms of cheap and renewable energy, he stated:
“Well, where we purchased the land in, Mojave CA, happens to be ranked in the top 12 places in the world for solar power due to its placement and overall days of sun. We need to be able to push in innovation in sustainable energy by means of BTC and allow access to the rest of the world to participate [in the Bitcoin network]…”
Further, it appears that solar powered bitcoin mining could be a profitable business model. In an article by Green Tech Media, Tam Hunt, an attorney and owner of Community Renewable Solutions LLC, outlined the economics of supplying power to Bitcoin mining operations. In the article, he states
“It can make good financial sense to use solar power to mine Bitcoin. Solar plants can provide power that is cheaper than grid power in areas with good insolation and low construction costs. The price of power is also known with some certainty over time because there are no fuel costs and thus no volatility.”
Based on the foregoing, it seems that solar powered bitcoin mining operations may be a viable solution, especially when energy prices are high enough that they cause barriers of entry into the industry.