Crypto Mining has increased in influence all over the world. According to current statistics, the mining hardware market has shown trends to grow to 12053.16 million by 2027. The current projection shows the compound annual growth rate to be at 11.35% which is a clear indication that the crypto industry is just getting started. Currently, according to the cryptocurrency adoption curve, the world is still in the early adopter’s era. With the increase in using cryptocurrency for completing transactions, it is certain that there will be an increase in crypto mining.
The increase in people mining simply means that there is room for manufacturers to innovate the technology. From creating better hardware to implementing better practices, the industry is still innovating toward major improvements. This has shown promise in related fields, with the help of which crypto mining will reduce their dependency on carbon-based fuels. Similarly, hardware improvements to increase the efficiency and productivity of purpose-built mining rigs are also a practice currently being observed. As you read on you will find the current trends that are helping improve crypto mining. You should definitely be looking out for these.
Trend 1: Renewable Energy
Scientists, environmentalists, and those concerned with the carbon footprint are all focused on substituting the way we create electricity. Renewable energy has become a focus for many and many organizations are working globally to use geographical factors in creating electricity. Whether it be solar power, wind power, or hydropower, the aim is to use these natural resources and substitute the dependency on carbon-based fuels.
The current problem with crypto mining
At first glance, this may not seem like an industry that can directly impact the crypto industry, but the relevance is there. The thing with crypto mining is that it relies heavily on power in the form of electricity. With the large fans, to the hardware, the mining rig takes in a lot of power. In fact, the cost of power accounts for almost 90% of the running cost of any crypto-mining farm or rig. Let’s take the latest Antminer S19 Pro as an example.
The future of mining is said to operate on 3250W of power. It may seem low at first, but what we must understand is that mining rigs are running continuously day and night. When you start calculating the amount of electricity consumed each hour, multiplied by the number of machines you have operating simultaneously, you start understanding the bigger picture of why crypto mining is dangerous for the environment.
Renewable energy is the solution
Unfortunately, there are people in the world that believe the only way to reduce the carbon footprint caused by crypto mining is by banning it entirely. While people are entitled to their own opinion, there are better ways where mining can be environmentally friendly. Current strides in renewable energy have allowed crypto mining to exist while also being environmentally friendly. In regions like Dubai where the weather is sunny throughout the year, the use of Solar Panels to run crypto-mining farms is perfect.
The use of solar panels is a great alternative as it reduces the stress on the city’s power supply. While at the same time the miner can reduce daily running costs and increase profitability in the long run. This is applicable to most regions where there is a high percentage of sunlight annually.
Hydro powered mining rigs
Many enthusiasts are also exploring the possibility of using hydro-powered mining rigs as an alternative to using fossil fuels. This has proven to be successful for those miners that have access to high-altitude water streams. The technology used has allowed entire mining farms to be operated day and night without the excessive cost of using electricity. This has been popular and various organizations are looking to use the geographical feature to their advantage.
Responsible organizations globally
Much of the world is still coming to terms with the crypto industry and its applications in the real world. Blockchain technology can revolutionize digital transactions and make the world a safer place, and with renewable energy usage, governments are looking to legalize crypto mining on large scales. The great thing about the use of renewable energy for crypto mining is that organizations have already begun to reduce dependency on the city power lines. Depending on the scale of the companies they are taking the necessary steps in the right direction.
Trend 2: Immersion Cooling Technology
Perhaps the biggest problem experienced with crypto mining has been keeping the machines operating at maximum efficiency. The miners are built to process blocks specifically, which means that the machine is running around the clock. The excessive heat produced causes the machine to consume more power, adding running costs and deteriorating the hardware. The solution was not clear for a while as most miners came equipped with large fans to cool the hardware. The problem was major as it meant that miners produced a lot of noise while operating, along with producing massive levels of heat.
Relying on air cooling of mining rigs meant that they either had to be placed in air-conditioned rooms situated in a hot region or somewhere with good ventilation in the cooler regions. The air-conditioned rooms were an additional cost on the initial investment as well as increasing running costs daily. Simultaneously opening the hardware up to a natural blowing air such as by placing it near a window, meaning that the hardware would be exposed to dust.
The immersion of innovative technology
Immersive cooling came into the market as a revolution for so many looking to mine crypto in hot regions, and urban areas. The immersive cooling technology used a giant metal case with a liquid that would not only preserve the hardware but would also quickly conduct and dissipate any heat being generated from the miners. This was a major leap forward as it meant that miners no longer needed noisy fans for the sake of cooling.
The liquid immersion technique allowed for large-scale farms to be set up in smaller spaces. It also allowed many investors to effectively manage their investments, while also maximizing the profitability of the hardware itself. Higher hash rates were achieved which meant that more currency could be mined in minimal time. Of course, industry experts like crypto miners were able to provide many more options to anyone looking to mine crypto in the urban city of Dubai. The immersion technology did add to the initial investment required, but this time the pros outweigh the cons. For anyone looking to invest in the crypto mining industry for the long term, the technology came as the perfect opportunity.
The crypto mining industry is fairly new when compared with others. It is for this reason that there is immense room for growth. From custom-built hardware that performs a single function, to cooling and energy-efficient technologies, the industry is still adapting. However, in the coming years, it is certain that the industry will continue to grow at a rapid pace. Being technology-centered, many of the investors in the industry are open to new ideas. At the same time, they are looking to find environmentally friendly ways to expand their mining activities. There may have been a time when becoming a miner meant physical turmoil, but today, when you hear that someone is a miner, it may well be that it is the brain doing all the hard work.