Everyone is currently exploring many possibilities involving Bitcoin mining as well as how to make money off it. While there are people who would say that it definitely is profitable, first off, to make mining lucrative, one would have to invest in a powerful PC (miner) as well as power bills to use that PC.
By this, it can be quite expensive to start in Bitcoin mining, but that doesn't seem to faze the town of Drumheller. Global News reveals that, far from what it became famous for-fossils-the town is beginning to take a look into Bitcoin. This is where Hut 8 Mining Corporation is located. The main reason behind it is obvious-electricity is cheaper in the town, which means added profit for a business that focuses on Bitcoin mining.
This is the main reason, however, why Bitcoin mining can be quite expensive. Electricity rates move with the global price, and if the global price rises, it will also be affected. That is why cheap, renewable sources of energy are a boon for Bitcoin mining. This means more profits and fewer losses for businesses that engage in the mining and creation of Bitcoin.
To know how big Bitcoin electricity can cost, know this; the process of mining is a complicated process, but to put it simply, the process of creating a single Bitcoin consumes a lot of power. The more powerful the rig, the heavier its consumption of power is. The Bitcoin network, in fact, accounts for a yearly rating of 2.55 gigawatts (GW) in electric consumption.
Coin Telegraph notes that this is a problem for both the miner as well as the electric company. With the growing popularity of Bitcoin, more and more new miners mean more consumption. There will come a day when mining becomes too difficult and, therefore, the power consumption too great for comfort.
This is why as the demand for more powerful rigs as well as greater electrical power increases, the need for renewable sources is even greater. While it's not yet widespread, there is a lot that renewable energy can do for both Bitcoin as well as the environment.
Bitcoin and renewable energy may have been strange bedfellows, but that's more than some years ago. The changing landscape has already made their partnership inevitable.
