Crypto Energy Usage, Should You Be Concerned?
Energy Usage, Should You Be Concerned?
In our previous blog, we talked about Bitcoin energy consumption to be 0.5% of the world’s energy cost by the end of 2018. With energy consumption growing, concerns such as pricing of energy and environmental impact come into play.
The above is something to be considered especially for miner hosting (individuals or companies). With high hash rate miners, which drives higher ROI, the energy usage will increase. This is a vicious cycle as with the increase in energy cost > Lower ROI > Increase hash Rate > Increase energy cost…
Baidu – Super Chain In Energy Usage
What major announcement today came from Baidu, a Chinese multinational technology company specializing in Internet-related services and products, and artificial intelligence, headquartered at the Baidu Campus in Beijing’s Haidian District(https://en.wikipedia.org/wiki/Baidu), regarding their blockchain integration. Baidu announced that they will have a protocol aimed at the reduction of energy consumption. The protocol is named “Super Chain” as revealed by Xiao Wei, the chief scientist at Baidu’s blockchain division. Super Chain
Super Chain can “insert and remove consensus mechanisms to solve the current energy consumption problem,” Wei explained, and is also “compatible with the development system of Bitcoin and Ethereum.”With the integration of this system, users can see the potential to decrease energy cost with higher hash rate miners.
This development is in midst of all the controlling factors coming from the China government regarding the regulations of cryptocurrency; regulations such as limiting the size of a mining operation and the ability to buy and sell cryptocurrency (BTC, ETH, and Ripple). The regulations have pushed the market into Hong Kong where trading is allowed.
Effect On Crypto Miner’s
With the development of “Super Chain”, the demand for miners will most likely increase in relation to the decrease in cost of electricity. Starting your mining operation now or having miners hosted now would be your best option in order to further increase your profit margins. Having the miners on hand now or having hosted miners would mean your sunk costs to the miners are lower then what they would be in future.