Cryptocurrency miners instal rooftop solar panels to save on energy costs

Certain groups intend to establish offices in chilly countries.

Cryptocurrency miners in India have just gotten smarter. To offset the high cost of electricity, the majority of miners are installing solar rooftop power units and battery backup in their living facilities. Additionally, there are more innovative individuals who are examining surrounding cold countries to develop system infrastructure in order to avoid heat difficulties and consequent operational costs.

Cryptocurrency is a digital currency that relies on blockchain technology to facilitate its creation and secure online transactions. Bitcoin, Ethereum, Lightcoin, and Darkcoin are all well-known cryptocurrencies.

Crypto-mining is the process of earning cryoto through the solution of cryptographic equations utilising powerful computers. The extremely secure problem-solving procedure entails confirming data blocks, which are then appended to a public ledger using blockchain technology. Solving difficult mathematical problems in a decentralised environment online provides users with cryptocurrency.

Ajay K., 48, of Hyderabad, a former stock market trader, has been involved in the serious business of crypto-mining (Bitcoin and Ethereum) for the last couple of years. Mr. Ajay installed a solar rooftop unit a year ago to save money on electricity.

“My 5 kilowatt solar rooftop system with battery backup saves me more than 60% on energy costs. Air conditioning and a motherboard with many graphics cards take a significant amount of power. We are looking for ways to reduce these costs,” Mr. Ajay stated.

Cost of electricity and equipment

The hardware infrastructure uses a lot of power, which is a significant cost and a significant issue in cryptocurrency mining. On average, crypto-mining consumes between 30,000 and 50,000 watts of electricity every month. While the cost of a simple bitcoin mining system begins at $50,000, a professional system equipped with a high-end motherboard and eight graphics cards costs around $450,000.

Mr. Ajay is not the only one installing rooftop solar panels. He is joined by members of fraternity groups on WhatsApp and Telegram in India and overseas that have already established solar energy systems. According to estimations, India has a few lakhs of crypto-miners, while the Telugu states of Andhra Pradesh and Telangana have only a few thousand.

Offshore locations

Cost savings are not confined to solar energy systems. Superior ideas appear to be evolving in social media communities. There are more astute miners that wish to establish operations abroad, particularly in colder nations, in order to save on power. “We have a WhatsApp group of like-minded individuals who are working to establish our systems in Ukraine and other adjacent frigid nations. We are very likely to do so shortly,” Mr. Ajay stated.

Business of equipment

Meanwhile, the supply of crypto-mining equipment has grown to be a significant sector in India. According to Krishnam Raju of Bhimavaram, the demand for equipment is multiplying. He serves the markets of Andhra Pradesh, Telangana, and Tamil Nadu.

“The business is rapidly maturing. The import period has been cut to seven days for customised motherboards and graphics cards from China and Singapore. Customs clearances are instantaneous. Previously, the import process took roughly a month,” Mr. Raju explained.

Additionally, the rapidly growing market segment caters to those who are not cryptocurrency believers but are interested in lucrative equipment trade. “Like Warren Buffett, I am a cryptocurrency sceptic. However, the equipment trade works for me and I am content with it,” said Anil Kumar, a Hyderabad-based businessman.

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