Green energy made useful for mining

Japanese energy operator Kumamoto uses excess energy to mine cryptocurrency
01 March 2018   190

Kumamoto City local energy producer has reported it established an affiliate company OZ Mining that deals with the virtual currency. OZ Mining buys electricity from Kumamoto solar plants at a rate of 10~19 yen/kWh. The amount that the operator offers is a surplus of the produced electricity. This kind of application makes it effective to mine cryptocurrency.

Apart from just mining cryptocurrency, OZ Mining specializes in designing and building data centre sites (like mining farms) and assembles necessary mining rigs that can be fit to customer needs and power capabilities. Another notable product of the company is mining systems designed to work in cooperation to further increase the effectiveness.

The uncontrolled usage of electricity for the mining needs has recently become a mind-boggling issue. The situation has a reached a point when a solo mining farm easily overspends an entire country in terms of energy consumption. This poses a risk of huge pollution and environmental disaster. The instance of using a green energy is unprecedented and potentially could pave a way to more affordable renewable energy. Sources of renewable energy are usually located far from the population and pose a threat to the environment.

Largest mining farm to be built in the UK

The well-known UK tech company Bladetec is building the first large Bitcoin mining farm in Europe
20 March 2018   173

Bladetec had already got an experience in IT support for NATO and the Ministry of Defence of the UK in the past. Today its idea is funded by investors in a limited company which is protected by UK law.

The facility - Third Bladetec Bitcoin Mining Company (TBBMC), situated on the Southeast of the country, is going to cover 3,500 square feet in three different places: in London, Suffolk and Surrey.

Today the company is raising £10 million from investors for building and operating the farm for up 2 years. The farm will become global and significant, also it is supposed to be introduced in the world`s top 25 and produce considerable return for shareholders (as a result of its dominant position).

The minimum investment to TBBMC project set by the company is £ 5,000 from each applicant. The project allows the capital growth up to even 45 % within a period of 2-3 years. The returns for the shareholders at that stage would be based on the Bitcoins sales`proceeds and the ASIC machines. If the price of Bitcoin does drop by 40 %, an investor may lose 22 % of his capital.

The company declared that it is going to mine 1,280 bitcoins within a period of two years. Nowadays it's difficult to predict how much those Bitcoins may be worth in two years. According to current prices, they will be valued at £ 7,8 million. But the situation may probably change before 2021. As for the raised funds, they would mostly be spent on the energy costs, despite the low energy bills' agreement between Bladetec company and the intended wind farm.

Bitcoin mining is more popular in the countries where the weather is cold (such as Iceland and China). The government of Iceland can implement a tax on mining because of the energy consumption. Chinese authorities insists on the ending of the cryptocurrency trading and mining in the country.