A start-up has recently come into the cryptocurrency space with a supposed plan to solve the increasing amount of pollution and consumption associated with cryptocurrency mining. The issue is something that is plaguing the digital currency world as it becomes more and more popular.
The Austrian start-up known as HydroMiner GmbH managed to raise almost $3 million during an initial coin offering according to the company’s website. The money they raised will be used to install high-powered computers at hydropower plants, where they will be able to mine new cryptocurrency at a cheap price, using renewable energy sources. This will effectively make the price to mine cryptocurrency much lower, as well as reduce the environmental impact that the energy consumption has.
The co-founder and chief executive officer of Hydrominer in Vienna, Nadine Damblon, stated that “a lot of people are worried about the high energy consumption of cryptocurrencies. It’s a huge factor.”
The electricity needed to power the global network of computing is has gone up exponentially and increased by almost two-fifths since the beginning of October alone. This number is only poised to continue to increase as more enter the digital currency space. The amount of energy that is currently being used is around 28-terrawatt-hours a year. To put this in perspective, that number is more than all of Nigeria uses in a year. The electricity that is used to mine these currencies comes from none other than fossil fuel energy.
As the price of bitcoin, the number one cryptocurrency by market capitalization rises to almost $8,000, those who are in the industry will continue to bring more into it. The amount of money that is being mined will continue to increase as well as more miners enter the space given the profitability.