Mining cryptocurrencies can be a very profitable operation, especially if one was to get access to cheap electricity. That is the case of China, where most of mining operations are located and where roughly 60% of bitcoin mining occurs. Although recent developments might force mining pools to close or change geographically, currently four of the five biggest bitcoin mining pools are located in China.
The centralization of mining poses a big threat to the decentralized nature of cryptocurrencies, seeing as miners have the power to group together and make decisions for the whole network. However, this might not even be the biggest problem. Due to the country’s laxed environmental policies, mining in China has a detrimental impact on the environment. In an effort to reduce the harmful effects of mining on our world, a project named HydroMiner is working on providing a more environmentally-friendly solution.
HydroMiner is a cryptocurrency mining company located in the Alpine region of Europe. What distinguishes them from the rest is the fact they use renewable energy, in this case hydro power, in order to power their mining facility. Not only is hydro-based mining ecologically friendly, especially if compared to the coal fuelled mining operations in China, it is also very profitable, allowing for an 85% reduction in electricity costs when compared to the average price in Europe.
In order to power the operation, mining equipment will be put inside sea freight containers which will be near the hydropower stations. The water is not only used to power but also for cooling the mining equipment (maintaining lower temperatures is essential for prolonging mining equipment lifespan and also may also help reduce energy costs).
HydroMiner’s focus is on GPU mining and its plan is to mine Ethereum (40%), Ethereum Classic (20%), Zcash (20%), and Siacoin and other cryptocurrencies (20%). But this is only an estimate, seeing has the decision as to what cryptocurrency to mine is made by software algorithms. The algorithm will choose which cryptocurrency is more profitable to mine at any given moment and HydroMiner will also be flexible about what mining pool it chooses to join, depending on factors like payouts and liquidity.
The token sale for H2O, the HydroMiner crypto token, will start on the 18th of October following a successful pre-sale that ended in just 36 minutes. This token allows its holders to receive the profits from said mining operations.
“The wide interest in our project is stunning, a lot of people would like to see the crypto world build upon an environmentally friendly form of mining.” – Nadine Damblon, HydroMiner CEO
Most of the proceeds of the token sale will be used to buy hardware, equip containers and rent new hydropower stations. Profits from the HydroMiner facilities will be distributed between investors (80%), the team (10%), and token buy-backs (10%).
“We want to expand to at least 20 Containers within the next 12 months, our goal is to be one of the biggest miners in Europe, using environmentally friendly energy.”
HydroMiner has rented its second power station in Austria and plans on renting the third one until the end of the year.
Bitcoin and Ethereum mining are now consuming as much energy as entire nations. And as cryptocurrency mining continues to thrive as an industry, the need for green energy powered mining is crucial. Hydro power is an excellent option between renewable energy resources. It is most effective, natural, and environmentally friendly. Not only that, it is also a very simple and easily controllable technology. Let’s hope more projects like HydroMiner take steps toward more environmentally conscious mining.