power

Kazakhstan could turn to nuclear power to keep its Bitcoin mining industry running


Bybit

As per Nikkei Asia, Kazakhstan’s president Kassym-Jomart Tokayev has suggested building a nuclear plant to sustain Bitcoin mining in a bid to support the profitable crypto mining activities in the nation 

“Looking into the future, we will have to make an unpopular decision about the construction of a nuclear power plant,” said Tokayev in a bankers meeting held in Almaty last Friday.

Tokayev first discussed the idea of building a nuclear power plant with Russia’s President Vladimir Putin in April 2019. However, the idea could not be acknowledged following the heavy criticism that it received back then. 

The critics were quick to respond, referring to the nuclear plant idea as an “ecological disaster” in the making. Despite growing unease among Kazakh’s citizens, President Tokayev is keen on pursuing the idea and have addressed the apprehension of citizens regarding constructing a nuclear plant as “inappropriate” 

Kazakhstan’s looming power crisis

Kazakhstan boasts low-cost electricity prices that have transformed the country into a popular crypto mining spot. When China imposed a heavy crackdown on Bitcoin mining activities in its country, a large group of ousted miners took refuge in Kazakhstan, where they could mine crypto without excessive government intervention and could make use of its easily accessible and cheap electricity to mine Bitcoin. 

To fuel the growing demand for Bitcoin mining, the country’s energy supply had to double over to accommodate such a large influx of crypto miners.  

According to Cambridge Bitcoin Electricity Consumption Index’s IP data, Kazakhstan controls approximately 35% of Bitcoin mining power, which is second to that of the United States. 

Due to this sudden increase in crypto mining activities in Kazakhstan, the nation is now facing a heavy power crisis where its citizens are now experiencing frequent power outbreaks. 

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Posted In: Bitcoin, Mining
Bybit

Like what you see? Subscribe for updates.



Source link

Binance CEO Says Dogecoin Demonstrates The Power Of Decentralization


Dogecoin was something of an outlier when it first started to gain traction in the market. It changed the way the crypto market sees and perceives the value of an asset despite what utility it may or may not have. The digital asset was only propelled forward by memes and community love. But in less than a year, the asset became one of the most valuable cryptocurrencies in the market.

Dogecoin’s developers have since tried to introduce use cases for the crypto. Its use as a payment method has given it a somewhat compelling utility in the space. However, this still does not change the fact that at its core, Dogecoin was not created to do anything besides be a joke, and this, says Changpeng Zhao, CEO of Binance, demonstrates the power of decentralization.

Related Reading | Calls For Ad Crackdown After Floki Inu Ads Pop Up All Over London’s Travel System

People Determine The Value

Changpeng Zhao participated in a Q&A with Associated Press where he shared his thoughts on the most popular meme coin in the market. For Zhao, he does not understand Dogecoin or how it works really but explains that what he thinks of the digital asset does not matter in the grand scheme of things. This is one of the advantages of a decentralized ecosystem.

Dogecoin has fluctuated wildly in the past. However, the meme coin had grown to a point where it was no longer as volatile as it used to be. Also, it has persevered in the market. Through market crashes and dips, Dogecoin has held out. Its success has led to the creation of other successful meme coins like Shiba Inu and Folk Inu. Why are they valuable? Because their value is determined by people.

Dogecoin price chart from TradingView.com

Doge trading at $0.23 | Source: DOGEUSD on TradingView.com

“If a large enough number of people in the community values it because it’s cute because they like the meme, then it has value,” Zhao pointed out. The CEO added that an asset only needs one other person who is willing to buy it to be valuable and since people are willing to purchase meme coins, then they are valuable.

“For something to have liquidity, you need a large number of people to want to buy it or sell it. Once you have liquidity, a thing has value, according to the neutral market. So it’s not up to me to judge it.”

Is Dogecoin A Bubble?

When asked if the properties listed above for the meme coin qualified it as a bubble, Zhao answered, “To some extent, yes. But it’s not a black and white thing.” Dogecoin has been described as a bubble since it had first started climbing in value earlier in the year. However, the altcoin has maintained value through all of that time to now, albeit at a lesser value.

Related Reading | Shiba Inu Vs BabyDoge: Which Dog-Themed Coin Will Reach 1 Million Holders First?

The Binance CEO explained that trying to define what a bubble is can be tricky. Assets that have dropped more than 80% like Bitcoin are usually referred to as bubbles, but Bitcoin had recovered to even higher values after the drop. Zhao also pointed to Amazon’s 90% drop in the early 2000s but that it is now one of the most valuable companies in the world. Most would say it went through a bubble, but CEO Jeff Bezos would disagree, says Zhao.

As for Dogecoin, Zhao pointed out that as long as people understood the risks associated with investing with the digital asset, then it’s all good.

Featured image from Coingape, chart from TradingView.com



Source link

6 sources of renewable energy that will power the future of Bitcoin mining 


Bybit - Get 50% APY on MANA & IMX

Yes, Bitcoin mining does consume a lot of energy — about 110 terawatt hours per year, the energy equivalent of a small country. Considering that a single Bitcoin mining farm might be running hundreds or thousands of mining rigs (roughly the equivalent of running a space heater) all day, every day, it’s easy to see how that much energy can be created. It’s also easy to see why keeping energy costs low becomes the main concern of Bitcoin miners.

The good news for large-scale Bitcoin mining operations is that the cheapest sources of energy are also the cleanest and most sustainable, like wind, solar, and hydropower, which are all cheaper sources than gas and coal. Additionally, the Cambridge Center for Alternative Finance estimates that 76% of miners are already using sustainable energy sources.

Still, with recent questions in the news around the source of Bitcoin’s energy usage, and whether it can be sustainable going forward, there’s still more to do to grow awareness and adoption of renewable sources of energy.

If you’re looking to start a mining operation, switch electricity sources, or invest in a mining company and want to know more about where they’re getting their energy, here are the top sources of renewable energy that will fuel the industry in years to come.

Solar Power

Solar is the most widely used renewable energy source, and is also one of the most straightforward: Capture energy from the sun’s rays through photovoltaic cells in solar panels. They’re easy to install and maintain, and it doesn’t require any drilling or mining, or anything to be burned. Additionally, solar energy costs have only dropped in recent years, with the cost for electricity from utility-scale solar photovoltaics (PV) down 82% from 2010 to 2019.

Recently, Square and Blockstream announced that they would be investing in a $5 million fully solar-powered Bitcoin mining facility, as they say, in order “to show that a renewable mining facility in the real world is not only possible but also prove empirically that Bitcoin accelerates the world toward a sustainable future.”

Wind

Renewable energy sourced from the wind is another option. This involves setting up large wind turbines in open areas to capture the energy from air movement and turn it into electricity. Again, it’s a renewable energy source that doesn’t require drilling or mining — simply the construction of wind turbines — and the energy produced can power single homes, cities, or even countries. Wind power costs one to two cents per kilowatt-hour, and prices tend to be fixed over long periods of time. No fuel costs or usage and job creation also make wind attractive.

In the wake of the Chinese crackdown on Bitcoin mining operations, there’s speculation that many miners may move to Texas, due to the abundant wind power available, as wind provides upwards of 20% of Texas’s energy.

Hydropower

Capturing energy from water currents is one of the oldest types of renewable energy sources (think water wheels powering mills or the Hoover Dam). It’s also an incredibly consistent source of energy, as constantly running waterfalls can provide steady, endless power, whether it be captured through running rivers or simulated through damming and turbines. As for costs, it’s also one of the cheapest at 85 cents per kilowatt-hour, and upwards of 90% of the energy can be converted into electricity.

One of the biggest advantages Chinese mining operations had before the nationwide crackdown was that they were able to tap into massive amounts of hydroelectric power available to them, specifically in the Sichuan province, wherein the rainy season, 95% of electricity can come from hydro.

Geothermal

El Salvador president Nayib Bukele made news when he tweeted an invitation to Bitcoin miners to use their volcano energy, which is in fact geothermal energy, another renewable resource. Geothermal energy comes from heat stored within the Earth’s crust, which can include energy that escapes through steam, or even through volcanos. As of 2020, geothermal energy has a capacity of 14,000 megawatts, and is considered a plentiful, consistent source of renewable energy. Yet geothermal energy is only available in certain areas of the world where heat can rise to the surface, typically around tectonic plates.

Tidal Power and Ocean Energy

Capturing tidal power or the energy of the ocean is another renewable option similar to hydropower. Instead of running water, tidal barrages set up at the tide line or turbines set up in the ocean below sea level capture the movement of the water and turn it into electricity. While adoption has been limited so far with few sites established, this option is expanding as technology improves and costs come down. However, it is incredibly promising: The world’s largest tidal power station in South Korea generates over 500 gigawatt-hours a year, or the equivalent of 862,000 barrels of oil.

Waste Energy and Biomass

Another renewable source is waste energy, where organic material is broken down to create heat through either incineration or bacteria that decompose organic material. The heat created then drives steam turbines to produce electricity. This option can also help reduce the presence of landfills. Crypto company 4New made news when they announced they would install a waste-to-energy plant that would fuel their facility.

How Bitcoin Mining Can Be a Renewable Source for Others

Bitcoin miners aren’t just looking to consume renewable energy sources, but to be renewable energy sources as well. Some miners are able to sell their excess energy back to the grid. Others are using their excess mining farm heat to power greenhouses and other local industries, and even to heat towns.

Whether consuming or providing, Bitcoin mining will certainly play a major role in creating a sustainable future.

Guest post by Abdumalik Mirakhmedov from Genesis Digital Assets

Co-Founder & Executive Chairman of Genesis Digital Assets — the most experienced Bitcoin Miner in the world. He is a tech investor and seasoned manager with a focus on Digital Assets and Artificial Intelligence industries. He has more than 15 years of management experience in public and private companies. Abdumalik combines his expertise and confidence in Bitcoin to build the most successful global crypto mining company.

Learn more →

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Bybit - Get 50% APY on MANA & IMX

Like what you see? Subscribe for updates.





Source link