Solar photovoltaics and cryptocurrency mining

This page is a literature review for investigating the potential for solar photovoltaics and cryptocurrency mining.

Background[edit | edit source]

The goal of this literature review is to determine the feasibility and sustainability of cryptocurrency mining utilizing solar photovoltaics (PV) as the power source. Cryptocurrency mining consumes immense amounts of electricity to operate and has been criticized for its environmental impact through the use of non-renewable energy sources. As cryptocurrencies and mining become increasingly adopted globally, it is imperative that sustainable energy sources are used to minimize the environmental impact. Electricity is the fundamental cost of cryptocurrency mining. The reduction of this cost through renewable energy sources such as PV will make cryptocurrency mining more attractive to investors and simultaneously promote sustainable energy adoption globally.

Search Terms[edit | edit source]

cryptocurrency mining and "solar photovoltaics"

solar photovoltaics and cryptocurrency mining

solar powered cryptocurrency mining

cryptocurrency mining with "photovoltaics"

photovoltaics and cryptocurrency mining

cryptocurrency mining with renewable energy

Literature[edit | edit source]

Techno-economic, and environmental evaluations of a novel cogeneration system based on solar energy and cryptocurrency mining[edit | edit source]

Nikzad, A., & Mehregan, M. (2022). "Techno-economic, and environmental evaluations of a novel cogeneration system based on solar energy and cryptocurrency mining." Solar Energy, 232, 409-420.

Abstract: Today, earning money through cryptocurrency mining, especially in developing countries such as Iran, is rapidly expanding due to the low value of the national currency in comparison with the world's major currencies. But illegal mining, high power consumption of the mining system, and the resulting environmental consequences are among the challenges facing this industry in Iran. Therefore, in this study to solve these problems, the simultaneous generation of electricity and mining of Ethereum cryptocurrency with a legal approach through power supply of the system by a 5.2 kWp grid-connected photovoltaic (PV) rooftop system as well as its technical, economic, and environmental analysis are considered. The results show that the proposed PV rooftop system can supply 83% of the consumed AC electricity of the mining system per year and prevent the annual emissions of 5.5 tCO2 to the atmosphere simultaneously. Also, the desirability of the payback period and the ratio of benefit to cost, positive net present value (NPV) index as well as attractive internal rate of return (IRR) index, all show the usefulness of the project. Finally, the cumulative cash flow value of this project at the end of its lifespan will be $ 478038, which is a significant amount.

Summary:

This study investigates a cogeneration system utilizing a grid-connected PV rooftop system on a residential building in Shiraz, Iran to provide the capacity required for power consumption by an Ethereum cryptocurrency mining system.
PVsyst and RETScreen software were used for environmental and economic assessments of the project.
5.2kW was nominal capacity used for the PV rooftop system.
Space used for the PV rooftop was 47.5m² with an albedo value of ground of 0.2.
The total cost of installation of the PV rooftop including installation and equipment was approximately $2,600
The ministry of Iran has a purchase tariff rate from suppliers at $0.043/kWh under a 20 year purchase power agreement in which the last 10 years is adjusted to 70% of the aforementioned rate.
A medium budget Ethereum mining system was used, utilizing an Asrock B250 Gaming K4 mainboard.
Cost of the miner is $2,500 with a consumption rate of 1.3kWh per hour, hash rate of 27.5 MH/s, and a 1% pool fee.
Graphics card instead of ASIC because of convenience and less noise.
Price of one Ethereum was $1592.75 and assumed to remain constant for projected calculations.
The 4 graphics cards have a life span of 3 years with a salvage value of $500 and a replacement cost of $2,000.
Ministry of Energy in Iran has a cost of consumption for the months of June to September of $0.08 per kilowatt-hour and $0.02 for the remaining months.
Optimal tilt angle for the PV system was found to be 30 degrees and azimuth angled.
Optimal PV string distance was 3m due to constrained space.
Losses due to shading were estimated to reach a maximum of 1%. The most important loss was due to temperature loss at 6.07%.
Assumption that the miner runs 24 hours per day, the annual cost of power consumption was $68.3 as 83% of power was supplied by the PV rooftop system.
Can allocate a larger portion of energy consumption to the PV system by choosing PV systems with higher capacity and generate additional income through sale of surplus electricity to the grid.
Net annual revenue of $3170.42.
Reduces carbon emissions by 77.7% as compared to power consumption from the grid without the PV rooftop system.
Benefit-to-cost ratio of 10.4 for the project with an NPV of $48,906 during its lifespan with a 1.4 year payback period.

Enhanced Profitability of Photovoltaic Plants By Utilizing Cryptocurrency-Based Mining Load[edit | edit source]

Eid, B., Islam, M. R., Shah, R., Nahid, A. A., Kouzani, A. Z., & Mahmud, M. P. (2021). "Enhanced Profitability of Photovoltaic Plants By Utilizing Cryptocurrency-Based Mining Load." IEEE Transactions on Applied Superconductivity, 31(8), 1-5.

Abstract: The grid connected photovoltaic (PV) power plants (PVPPs) are booming nowadays. The main problem facing the PV power plants deployment is the intermittency which leads to instability of the grid. In order to stabilize the grid, either energy storage device - mainly batteries - or a power curtailment technique can be used. The additional cost on utilizing batteries make it not preferred solution, because it leads to a drop in the return on investment (ROI) of the project. A good alternative, is using a customized load (such as; cryptocurrency-based loads) which consumes the surplus energy. This paper investigating the usage of a customized load - cryptocurrency mining rig - to create an added value for the owner of the plant and increase the ROI of the project. These devices are widely used to perform the required calculations for validating the transactions on the network of the Blockchain. A comparison between the ROI of the mining rig and the battery have been conducted in this study. Based on this study the mining rig has superior ROI of 7.7% - in the case with the lowest ROI - compared to 4.5% for battery. Moreover, an improved controlling strategy is developed to combine both the battery and mining rig in the same system. The developed strategy is able to keep the profitability as high as possible during the fluctuation of the mining network.

Summary:

This study investigates the intermittency of PV power plants which cause instability on the grid in Turkey.
The options that are available to stabilize the grid; usage of batteries, power curtailment, or cryptocurrency-based loads to consume surplus energy.
Comparison of ROI between a cryptocurrency mining rig and batteries.
Controlling strategy combining both the mining rig and the battery system was studied to maximize ROI.
A PVPP with capacity of 1 MW dc was used.
Mining rig had less capital cost than batteries.
ROI for batteries was 4.5%.
Antminer S19 by Bitmain was the mining rig used with a hash rate of 3325 TH/s.
4 cases have been created for the mining rig; values from mining network after the bitcoin halving, a 16% increase of mining difficulty, a $40,000 BTC, 20% increase in mining difficulty in addition to a 50% reduction in BTC price (worst case).
In the worst case the ROI for the mining rig was 7.7%.
Combining batteries and the mining rig is recommended to control for fluctuations in the mining market, optimize profit from the mining rig, and maintain a high state of charge for batteries.

Securing the Smart Grid: A Blockchain-based Secure Smart Energy System[edit | edit source]

Suciu, G., Sachian, M. A., Dobrea, M., Istrate, C. I., Petrache, A. L., Vulpe, A., & Vochin, M. (2019, September). "Securing the smart grid: A blockchain-based secure smart energy system." In 2019 54th International Universities Power Engineering Conference (UPEC) (pp. 1-5). IEEE.

Abstract: This paper presents how a Smart Grid system is secured and how blockchain implementation provides confidentiality and integrity for such a system. One main issue that has to be addressed in smart grid systems is databases security. Blockchain has been proven to be a safe alternative to be used in mining systems because it allows a secure applicability in databases. Another important feature is that each hash in a crypto mining system cannot be changed if it has such an algorithm behind its build, thus resulting in a secure and reliable system. This paper aims to show how blockchain can affect and be used in a smart power management system going forth from the SealedGRID platform. This system enables the user to monitor in real time the power usage in a smart grid system, therefore, this platform being built with security and resilience against attacks in mind.

Summary:

The article is based on Blockchain integration to better secure a smart energy management system.
PV systems were used to supply a building and the surplus energy was used for cryptocurrency mining.
Blockchain provides confidentiality and integrity to the Smart Grid system with relation to databases security.
Panels are connected to inverters where electrical production is monitored by the Internet of Things (IoT) Verbund device, and consumption is monitored by Fibaro smart plugs.
MicroGrid uses Blockchain.
GPU cryptocurrency mining system used to mine Ethereum with 66 PV panels supplying 255W.
Resulted in 0.075 Ethereum/day on average.
SealedGRID project will enable households to better manage their energy consumption.

Sustainable Cryptocurrency Mining[edit | edit source]

Horasia, C., ur Rehman, N., Yap, M., & Rehman, A. (2021, December). "Sustainable Cryptocurrency Mining." Asia-Pacific Solar Research Conference.

Summary:

This article investigates and compares the feasibility of one high-powered and one low-powered cryptocurrency mining rigs using an off-grid solar power system.
Highlights the benefits of decentralized data storage through one-way encryption compared to centralized environments that are prone to risks.
Antminer E9 (ASIC) was the high-powered rig and the AMD Radeon RX 6800 (GPU) was the low-powered rig.
Miners were connected to F2pool to mine Ethereum.
Parameters were assumed constant with continuous mining throughout the year.
Hypothetically, a large flat area of land in New Zealand was selected.
Antminer E9 generated $206/day with a payback period of 1.06 years.
AMD Radeon RX 6800 generated $4/day with a payback period of 3.53 years.
Found that PV powered cryptocurrency mining is feasible and high-powered rigs have a greater initial investment with a shorter payback period.

Techno-economic analysis of a grid-connected hybrid PV power plant integrated with a crypto currency mining system[edit | edit source]

Hojjat, M., & Kalali, M. H. (2021, December). "Techno-economic analysis of a grid-connected hybrid PV power plant integrated with a crypto currency mining system." In 2021 11th Smart Grid Conference (SGC) (pp. 1-6). IEEE.

Abstract: The penetration of Photovoltaic (PV) power plants is increasing due to economic and environmental reasons. The capacity of solar power plant installation is always limited by the capacity of the electrical network and base load of the feeder. A hybrid PV power plant integrated with internal consumption can be considered as a multi-objective solution since it provides two major beneficial points. In this paper, a grid-connected Hybrid PV power plant integrated with a crypto currency mining system has been modeled. A comprehensive analysis including technical and economic evaluation including a risk management model has been done. To generate reliable results annual power flow study has been performed and technical results based on a yearly timeframe have been extracted. Results show that integrating a PV power plant with a miner system could be beneficial not only from the viewpoint of owner investment issues but also considering grid-related technical factors like energy loss and voltage profile.

Summary:

This study discusses a cryptocurrency mining set-up integrated with a grid-connected Hybrid PV power plant.
Comprehensive technical and economic assessments were performed in conjunction with a risk model to deal with price uncertainties of cryptocurrencies.
Integration is to increase capacity in the distribution feeder.
During off-period of PV, the mining rig is supplied by the grid.
PV Syst. software was used to calculate yearly generation of PV power plant.
DIgSILENT model was used to create the load characteristics.
Three scenarios were evaluated
Scenario 1: A 2 MW solar plant was integrated into the feeder.
Scenario 2: 140 Antiminer S17+ were added to PV plant to reach 410 kW allowable demand and reduce the total annual energy close to zero.
Scenario 3: 70 Antiminer S17+ were added to PV plant so the total annual energy loss of the feeder is zero.
Scenario 2 was the most profitable with an IRR of 72% and payback period of approximately 1 year.
As the number of miners increase, the risk to reward (RTR) metric steadily increases.
Increasing miner utilization trends threaten profit margins and reliability of hybrid power systems in the future.

Opinions on Sustainability of Smart Cities in the Context of Energy Challenges Posed by Cryptocurrency Mining[edit | edit source]

Fadeyi, O., Krejcar, O., Maresova, P., Kuca, K., Brida, P., & Selamat, A. (2019). "Opinions on sustainability of smart cities in the context of energy challenges posed by cryptocurrency mining." Sustainability, 12(1), 169.

Abstract: Next to climate change on the list of challenges faced by humankind in today's technological age is energy management. While "smart" ideas continue to gather momentum as some of the ways earmarked to combat the menace of a changing climate, coupled with efficient management of energy, research and development in the blockchain is not retracting, recently giving rise to digital currencies capable of fueling massive energy consumption via mining of "crypto-coins". Given that sustainability is a crucial goal in the design of smart cities nowadays, there are currently no assurances of sustainable cities where cryptocurrency mining is at full scale. Nevertheless, alternative energy sources may come to the rescue in no distant time. In this paper, we contextualize energy-use in smart cities through mining of virtual currencies, in order to predict whether or not smart cities can truly be sustainable if crypto-mining is sustained. An attempt is also made to emphasize the possible ways of reducing energy use and all activities involving digital currencies by seeking to replace "Proof of Work" (PoW) with improved alternatives.

Summary:

This paper evaluates the feasibility of energy-use in smart cities through cryptocurrency mining to predict whether it is sustainable.
Alternatives to "Proof of Work" (PoW) mining are explored to reduce energy use in cryptocurrency mining such as "Proof of Stake" (PoS).
Renewable energy sources are discussed including photovoltaic cells, concentrated solar-power, thermal collectors, and photovoltaic-thermal collectors to meet cryptocurrency mining energy needs and is more effective when various systems are combined.
Cryptocurrency mining does not fully adhere to the Paris Agreement without appropriate intervention such as renewable energy sources.

Sustainable energy and digital currencies: challenges and future prospect[edit | edit source]

Hosseini, S. E., & Kamyab, H. (2022). "Sustainable energy and digital currencies: challenges and future prospect." Future Technology, 1(1), 26-32.

Abstract: Due to the impressive growth in digital coins trading, most cryptocurrencies' market cap has increased drastically. Therefore, more people are engaged in the mining process, causing a significant increase in electrical power consumption. To make cryptocurrency technology sustainable, using renewables such as photovoltaic solar power, wind energy, tidal power, geothermal power, hydroelectric power, fuel cell, and biomass has been implemented. Moreover, to decrease electrical power consumption in the cooling process of mining systems and computers, using phase change material (PCM) has been recommended. Since the cryptocurrency mining process is very competitive, only those miners will survive who employ the most competitive mining systems and benefit from the lowest electrical power costs. While the profitability of renewable electricity-based mining is lower that grid-based mining, the latter method compensates for better sustainability in cryptocurrency and lower environmental costs. This paper reviews the possible ways to make the cryptocurrency mining process clean and environmentally friendly.

Summary:

This article discusses the methodology of making cryptocurrency mining sustainable and environmentally friendly using various renewable energy sources such as PV solar power.
Phase change material (PCM) is recommended to decrease electricity consumption of mining systems through the cooling process.
Power generation from renewable has a lower profitability than fossil-fuel based electricity due to high capital expenditures.
Renewable electricity benefits from operation expenditures, environmental costs, and sustainability compared to fossil-fuel electricity.

Implementing Blockchain Technology in Irrigation Systems That Integrate Photovoltaic Energy Generation Systems[edit | edit source]

Enescu, F. M., Bizon, N., Onu, A., Răboacă, M. S., Thounthong, P., Mazare, A. G., & Șerban, G. (2020). "Implementing blockchain technology in irrigation systems that integrate photovoltaic energy generation systems." Sustainability, 12(4), 1540.

Abstract: Traditionally, the energy industry has been slow in adopting new disruptive technologies and the transition to a new energy market will require a new digital transformation plan, involving all parties from the energy market. Although it now seems to be an impossible and hard-to-accept scenario, especially by the big players in the industry, the pilot projects so far demonstrate that blockchain can play a major role in the future energy market, even if the technology is still in the first stages of the adoption life cycle. This article attempts to describe a solution to provide alternative irrigation systems for small farmers. The solution involves creating associations of small farmers that will use green energy from photovoltaic panels for the irrigation of agricultural lands. The efficiency of the proposed system can be monitored not only through digital hardware connected to photovoltaic panels and water pumps, but also by using the new blockchain technology that stimulates innovation and growth in the energy and a high level of automation though smart contracts. To accelerate the transition to the green energy economy, a SolarCoin version similar to the Bitcoin cryptocurrency has also been proposed, which is a utility token that creates new possibilities for energy and water trading.

Summary:

This paper investigates the potential of alternative irrigation systems for small farmers using green energy from PV panels and blockchain technology through smart contract automation.
SolarCoin, a utility token for energy and water trading has been proposed to accelerate a green energy economy.
Microgrids would be used for small producers by providing transparent energy tracking through decentralization of data with blockchain technologies.
The proposed software solution is built on the Ethereum blockchain and Distributed Ledger technology with the goal of reducing irrigation system costs for farmers.

Blockchain Technology: Energy Efficiency and Ethical Compliance[edit | edit source]

Fernando, Y., & Saravannan, R. (2021). "Blockchain Technology: Energy Efficiency and Ethical Compliance." Journal of Governance and Integrity, 4(2), 88-95.

Abstract: Blockchain technology has the ability to disrupt almost every industry due to its ability to create a decentralized tamper-proof ledger network and carry out transactions without the need of a trusted third party intermediary. One of the major drawback of blockchain technology is the energy consumption surrounding its application. The problem has been discussed extensively, with proposals focusing on strengthening its consensus protocol and also integrating renewable energy sources to minimize its carbon footprint. To boost adaptability of blockchain in all sectors, the technology itself needs to look for less energy-intensive alternatives to boost its ethical and industrial compliance. As the energy sector is currently undergoing a revamp from its age-long one-way power network towards a decentralized grid system with distributed generation and storage. Adoption of blockchain technology must work hand in hand with the energy industry in order to make itself energy efficient and competitive in the long term.

Summary:

The paper evaluates blockchain adoption, energy consumption, ethical compliance, and efficiency opportunities for blockchain technology.
Highlights the benefits of blockchain technology application in a variety of industries and the potential to disrupt almost all sectors.
Cryptocurrency miners are increasing their electrical consumption by five fold each year.
Identified areas for improvement; less energy-intense protocol, renewable energy sources, develop regulations to stop the use of inefficient energy sources.
Discusses the three major protocols "Proof of Work" (PoW), "Proof of Stake" (PoS), and "Proof of Authority" (PoA).
Non-sustainable energy consumption has led to a poor reputation of the technology and a barrier for greater adoption.

The transition towards an environmental sustainability for Cryptocurrency mining[edit | edit source]

Bitir-Istrate, I., Gheorghiu, C., & Gheorghiu, M. (2021). "The transition towards an environmental sustainability for Cryptocurrency mining." In E3S Web of Conferences (Vol. 294, p. 03004). EDP Sciences.

Abstract: As Cryptocurrency becomes more and more popular so does its demand for mining rigs. At the end of 2020 there were approximately 5,392 different cryptocurrencies available with a total market capitalization of more than $201bn [1]. Cryptocurrencies are using decentralized, distributed systems in order to operate. The mining process involves solving cryptographic equations, which are ultimately used for ensuring encryption of the blockchain transactions, through the use of IT equipment - the most efficient way of doing it being by building mining farms which use Graphics Processing Units (GPUs). The Crypto farmers are rewarded with a share of the transaction they facilitate. As the Cryptocurrency market grows exponentially every year, so does its hunger for energy. For example, the Bitcoin Energy Consumption Index is evaluated to reach 77.782 TWh/year in 2021 [2], which, for comparison, is approximately 1.5 times larger than the entire electricity consumption of Romania in 2020 [3]. In this paper, the transition of Cryptocurrency mining processes towards environmental sustainability will be analysed. A Crypto-farm's Energy Performance Indicators (EPI) and Power Quality Indices (PQI) will be evaluated and, with the use of dedicated software solutions, the authors will propose an action plan to minimize the environmental impact of the energy boundary and to maximize the EPI, thus maximizing the profitability of this new type of business.

Summary:

This research is focused on the feasibility of transitioning cryptocurrency mining to a more environmentally sustainable process.
Energy Performance Indicators (EPI) and Power Quality Indices (PQI) were used as the metrics to be maximized when evaluated under different action plans.
Through the Energy Performance Improvement Plan (EPIP) on the entire sector the Environmental Impact Reduction (EIR) will be 4,693,230 tons of CO_2.
The EPIP includes PV systems, Hot-Aisle Containment System (HACS), and Active Power Filter (APF).

THE APPLICATION OF BLOCKCHAIN IN COMMUNITY ENERGY TRADING: A STUDY ON SOLAR ENERGY EXCHANGES IN MALTA[edit | edit source]

Formosa, D., & Azzopardi, B. (2021, November). "THE APPLICATION OF BLOCKCHAIN IN COMMUNITY ENERGY TRADING: A STUDY ON SOLAR ENERGY EXCHANGES IN MALTA." 38th European Photovoltaic Solar Energy Conference and Exhibition.

Abstract: The power grid is changing rapidly with the advancement of technology and recent grid innovations. Blockchain offers the possibility of contributing and advancing these emerging technologies. Integrating various distributed generation in energy infrastructure has brought many opportunities. Self-consumption and localised energy communities therefore have an important role in the development of this transition and to contribute to the advancement of renewable energies. This paper discusses a blockchain-based system which is designed to serve the demands of communities which share solar energy. This system includes smart-meters and analytical techniques to monitor the characteristics, uses and trends of consumption in a community and the potential of blockchain technology that facilitates energy exchanges.

Summary:

This study investigates a blockchain system designed to cater to the demands of communities sharing solar energy by facilitating energy exchanges.
Study includes six building in two scenarios; the first being six industrial PV prosumers and the second uses the same prosumers leveraging a collective installation.
Benefits of distribution of energy in a community include energy sharing to mitigate waste.
Smart-meters and analytical techniques monitor consumption trends in the community.
PoW and PoS consensus mechanisms were evaluated along with both private and public blockchains.
PoW is identified to be extremely energy intensive.
Smart contracts are used to allocate energy to participants.

Self-sustained Bitcoin mining-a profitable and sustainable business model[edit | edit source]

Zhai, S. (2019). "Self-sustained Bitcoin mining-a profitable and sustainable business model." European journal of economics and management sciences, (2), 25-31.

Abstract: Cryptocurrency bears great potential to revolutionize our future economies. As the mining of cryptocurrencies became increasingly profitable in recent years, we see the rise of companies armed with specialized computers whose revenue comes solely from mining. This study explores the use of solar power to construct a sustainable and profitable business model for these mining companies. Such a mining model has significant long-term advantages over traditional mining operations.

Summary:

The research discusses integration of solar power to create a sustainable and optimally profitable business model for cryptocurrency mining companies.
Long-term advantages of this model compared to traditional cryptocurrency mining is highlighted.
Solar PV installation costs trends are compared between China, Japan, Germany, United States, France, Italy, United Kingdom, and India.
On-grid solar powered Bitcoin mining feasibility and profitability was displayed.
Self-sustained solar Bitcoin mining eliminated significant costs and enabled mining in locations that were previously not capable of mining.
On a twenty-year time horizon with comparable capacity ASIC Bitcoin mining systems, traditional systems' net revenue was $1,280.50 compared to solar powered mining net revenue of $19,718.60.

Decentralized Transaction System of Surplus PV Output Using Blockchain[edit | edit source]

Nagatsuka, T., Sano, M., & Yamaguchi, N. (2018). "Decentralized Transaction System of Surplus PV Output Using Blockchain." In Grand Renewable Energy proceedings Japan council for Renewable Energy (2018) (p. 304). Japan Council for Renewable Energy.

Abstract: In Japan, there are subjects that surplus power and regulator shortage by introducing a large amount of photovoltaic in recent years. As the results, it is necessary to suppress the output of photovoltaics to maintain supply and demand balance. It has been proposed that output control and utilizing electric vehicle for improvement of these issues. However, these preparations are not enough to solve those issues. In this study, we propose surplus power transaction system by using blockchain and smart contract. In addition, we measured transaction fee and elapsed time in proposed system.

Summary:

A decentralized transaction system is proposed for surplus PV electricity output on Ethereum's blockchain using smart contracts.
Maintaining the supply and demand of photovoltaic output through suppression of electrical output by means of blockchain technology is explored.
Implementation and execution of smart contracts and tokenomics dealing with transacting cryptocurrency was analyzed through the Transmission System Operator (TSO) which which controls output from PV operators.

Hedging renewable energy investments with Bitcoin mining[edit | edit source]

Bastian-Pinto, C. L., Araujo, F. V. D. S., Brandão, L. E., & Gomes, L. L. (2021). "Hedging renewable energy investments with Bitcoin mining." Renewable and Sustainable Energy Reviews, 138, 110520.

Abstract: Renewable energy sources such as wind power are increasing their share of the world energy matrix. In Brazil, the regulator promotes reverse bid auctions where the winner agrees to begin production a number of years ahead under a long-term contract. If a wind farm project chooses to anticipate construction, it can sell its energy in the short-term market but becomes subject to electricity price volatility. In order to create incentives for early investment, we propose that wind farm investors can hedge electricity price risk by simultaneously investing in a cryptocurrency mining facility that uses electricity as input to produce newly minted Bitcoins. As electricity and Bitcoin prices are uncorrelated, the ability to switch between these outputs allows the wind farm to maximize revenues and minimize losses. We develop a numerical application under the real options approach to determine the financial impact of the investment in a Bitcoin facility for the wind energy producer that will allow it to optimally switch outputs depending on the relative future prices of electricity and Bitcoins. The short-term energy price and Bitcoin price/mining-difficulty ratio are modeled as distinct stochastic diffusion processes. The results indicate that the option to switch outputs significantly increases the generator's revenue while simultaneously decreasing the risk of anticipating the construction. These findings, which can also be applied to other renewable energy sources, may be of interest to both the energy generator as well as the system regulator as it creates an incentive for early investment in sustainable and renewable energy sources.

Summary:

This study examines hedging electricity price risk from wind farms by simultaneously investing in a Bitcoin mining system since prices are uncorrelated with Bitcoin.
Switching between electricity output and bitcoin output can maximize profitability and minimize losses.
Findings indicate the output switching method significantly increases revenues.
Application to other renewable energy sources such a photovoltaic solar energy is feasible.

Is Zero Electricity Cost Cryptocurrency Mining Possible? Solar Power Bank on Single Board Computers (Research Session)[edit | edit source]

Purnama, F., Irwansyah, M. B. A., & Usagawa, T. (2019, November). "Is Zero Electricity Cost Cryptocurrency Mining Possible? Solar Power Bank on Single Board Computers (Research Session)."The 14th International Student Conference on Advanced Science and Technology (ICAST).

Abstract: Bitcoin reaches $10000 per coins again, other cryptocurrency coins' value also drastically increases, and so will the desire for mining. Mining costs huge amount of electricity which is why renewable energy must be considered. The authors assembled a miniature solar powered miner for education and investigation whether profitability can be made. The module is the combination of solar panel, USB power bank, and USB powered computer devices which are usually smartphones and single board computers. Since the materials are affordable and easy to buy, it can be assembled by anyone which is very suitable for education and trials. This article contains a mixed short discussion of economics, education, environments, and innovative technologies.

Summary:

This article evaluates an affordable and easily replicable miniature solar powered Bitcoin miner made with a solar panel and USB computer devices.
A zero electricity cost cryptocurrency miner was constructed.
The Author's financial conclusion determined that this system was not worth pursuing at this small of scale.
The choice of cryptocurrency to mine has a significant impact on profitability.

Measurement Study of Energy Impact on Blockchain Technologies: Cryptocurrency Mining[edit | edit source]

Holliman, Q. (2021). "Measurement Study of Energy Impact on Blockchain Technologies: Cryptocurrency Mining."

Abstract: Blockchain technology facilitates the flow of information and the speed of information through a faster and more decentralized network. It has its advantages as compared to more centralized networks and legacy networks. With the evolution of mainstream technology, blockchains is predicted to be more effective and sufficient to consumers and commercial companies. In this paper, blockchains will be scaled to cryptocurrency mining, where cryptocurrencies utilize blockchain technology to record transactions and orders. Mining will also be examined through energy consumption, the algorithms behind some cryptocurrencies, their sustainability issue, and resolutions to combat high energy consumption. While the pace of energy consumption has changed since the beginning of cryptocurrencies, particularly Bitcoin, conventional energy has been constantly consumed drastically, and this paper will observe the sources behind this consumption and the alternatives to create a greener world amidst a crackdown on bitcoin taken as a source of currency to major companies.

Summary:

This paper examines cryptocurrency mining algorithms, power consumption, sustainability, and alternative to high energy consumption.
Focusing on Bitcoin and Ethereum mining feasibility, greener energy source implementation costs are explored.
GPU/CPU mining equipment will become obsolete in the future.
Fossil fuels can sustain cryptocurrency mining only for short-term conditions.
Algorithm Ethash and the prod and cons of its transition from PoW to PoS are discussed along with Ethereum 2.0 for Ethereum mining.
Renewable energy sources of hydropower, solar power, wind energy, bioenergy, and geothermal energy are evaluated.
Solar power alternatives use grids with low environmental impact and less greenhouse gas emissions while remaining affordable.

Energy consumption of cryptocurrency mining: A study of electricity consumption in mining cryptocurrencies[edit | edit source]

Li, J., Li, N., Peng, J., Cui, H., & Wu, Z. (2019). "Energy consumption of cryptocurrency mining: A study of electricity consumption in mining cryptocurrencies." Energy, 168, 160-168.

Abstract: Cryptocurrency is a relatively new combination of cryptology and currency in financial areas and is increasingly frequently used worldwide. Blockchain applications are expected to reshape the renewable energy market. However, there is a lack of studies covering the power usage of digital currencies. Therefore, this study ran experiments on mining efficiency of nine kinds of cryptocurrencies and ten algorithms. A comparison of statistical analysis of data in a benchmark and experiment results of Monero mining was conducted. Thereafter, this study provided an estimation of global electricity consumption of the Monero mining activity. The results indicated that the hashing algorithm mainly determines the mining efficiency. Data analysis and experiments and estimated Monero mining electricity consumption in the world and its carbon emission in China as a case study. In 2018, Monero mining may consume 645.62 GWh of electricity in the world after its hard fork. The Monero mining in China may consume 30.34 GWh and contribute a carbon emission of 19.12–19.42 thousand tons from April to December in 2018. Although cryptocurrency mining and blockchain technology are promising, their influence on energy conversation and sustainable development should be further studied.

Summary:

Experiments were ran with nine different cryptocurrencies and ten different algorithms to evaluate the mining efficiencies and and power consumption.
Hashing algorithm mainly determines mining efficiency.
Blockchain has the potential to reshape the renewable energy market.
Mining can help stimulate adoption and development of renewable energy through metering, trading, and transporting renewable energy with blockchain.
Coins selected were outside the scope of previous research which were are focused on Bitcoin or Ethereum.
PoW mining consensus is identified as a major contributor to the large amount of power consumption from mining.
Monero mining was the chosen case study for electricity and carbon emission estimates.

Cryptocurrency mining using renewable energy. An eco-innovative business model[edit | edit source]

Govender, L. (2019). "Cryptocurrency mining using renewable energy. An eco-innovative business model."

Abstract: The purpose of the study was to explore and describe the phenomenon of cryptocurrency mining using renewable energy through the investigation of innovative business models. The focus was on crypto-mining companies located in Europe, which use renewable energy to power their operations. The aim of the research was to find answers to the research questions about sustainable cryptocurrency mining as a concept, about the future of the industry, as well as to identify if their business models can be considered eco-innovative. The study was limited to cover only the cryptocurrency mining centers that rely on renewable energy for their business and are situated in Europe. The theoretical studies included concepts of business model, eco-innovation and eco-innovation in business models. The empirical study consisted of three interviews with the representatives of three cryptocurrency mining centers that rely on renewable energy, as well as two e-mail interviews with expert cryptocurrency researchers. Additionally, information on cryptocurrency mining as a business and energy consumption by crypto-mining was gathered. The description of renewable energy was also covered. The results showed that cryptocurrency mining using renewable energy is a growing business niche driven by maximizing profits through using the cheapest renewable energy available. Such a business model could be defined as eco-innovative. The study also speculated on the potential future of crypto-mining and could not come to a definite conclusion. Ideas for future studies include cryptocurrency evolution and its applications and impact on other industries, and development and implementations of Blockchain technologies in various sectors.

Summary:

This study investigates the business model of cryptocurrency mining using renewable energy sources.
Mining companies in Europe using renewable energy sources were studied to evaluate the future outlook of the industry and sustainability.
Three interviews with three companies were performed along with two e-mail interviews with experts on cryptocurrency research.
Cryptocurrency mining powered by renewable energy sources are deemed to be Eco-innovative.
The future outlook for cryptocurrency mining remains unclear.

Cryptocurrency Mining from an Economic and Environmental Perspective. Analysis of the Most and Least Sustainable Countries[edit | edit source]

Náñez Alonso, S. L., Jorge-Vázquez, J., Echarte Fernández, M. Á., & Reier Forradellas, R. F. (2021). "Cryptocurrency mining from an economic and environmental perspective. Analysis of the most and least sustainable countries." Energies, 14(14), 4254.

Abstract: There are different studies that point out that the price of electricity is a fundamental factor that will influence the mining decision, due to the cost it represents. There is also an ongoing debate about the pollution generated by cryptocurrency mining, and whether or not the use of renewable energies will solve the problem of its sustainability. In our study, starting from the Environmental Performance Index (EPI), we have considered several determinants of cryptocurrency mining: energy price, how that energy is generated, temperature, legal constraints, human capital, and R&D&I. From this, via linear regression, we recalculated this EPI by including the above factors that affect cryptocurrency mining in a sustainable way. The study determines, once the EPI has been readjusted, that the most sustainable countries to perform cryptocurrency mining are Denmark and Germany. In fact, of the top ten countries eight of them are European (Denmark, Germany, Sweden, Switzerland, Finland, Austria, and the United Kingdom); and the remaining two are Asian (South Korea and Japan).

Summary:

This study determines the most and least sustainable countries in regard to cryptocurrency mining capabilities.
Environmental Performance Index (EPI) was used to analyze the sustainability and environmental impact of cryptocurrency mining and whether renewable energy sources are a viable solution.
Factors of cryptocurrency mining analyzed to determine sustainability include: R&D, legal constraints, human capital, temperature, energy price, and renewable energy generation.
Price of electricity is a crucial factor to mining decisions.
Linear regression is calculated using discussed factors to recalculate EPI in a sustainable way.
Eight of the top ten sustainable countries capable of cryptocurrency mining are European and the other two are Japan and South Korea.

Improving Return on Investment for Photovoltaic Plants by Deploying Customized Load[edit | edit source]

Eid, B., Islam, M. R., Nahid, A. A., Kouzani, A. Z., & Mahmud, M. P. (2020, October). "Improving return on investment for photovoltaic plants by deploying customized load." In 2020 IEEE International Conference on Applied Superconductivity and Electromagnetic Devices (ASEMD) (pp. 1-2). IEEE.

Abstract: The deployment of grid connected photovoltaic (PV) power plants is increasing dramatically recently. Due to the intermittent nature of the PV power plant, a battery and/or a power curtailment controller has to be installed to maintain the stability of the distribution network. The battery is an additional cost in the system so the return on investment (ROI) analysis has to be conducted. An alternative to the battery, a customized load can be used to consume the surplus energy. This load has to make an additional income to be profitable for the plant's owner. Such load can be crypto-currency mining rig that does calculation to validate the transaction in the Blockchain network. This study compared the ROI of the battery and the mining rig. The study shows that mining rig has higher ROI of 7.7% compared to 4.5% for battery.

Summary:

Comparison of ROI with battery powered and solar PV powered cryptocurrency mining rigs.
PV powered cryptocurrency mining is deemed most profitable.
High capital costs in both scenarios.
Battery powered mining income depends on Turkish government incentives.

Feasibility Model For Solar-Powered Cryptocurrency Mining Setups[edit | edit source]

Rehman, Naveed & Yap, Max & Afzal, Mujaddad & Horasia, Christopher. (2021). "Feasibility Model For Solar-Powered Cryptocurrency Mining Setups." 2021. 1. Southern Institute of Technology Journal of Applied Research.

Abstract: This paper presents a model for assessing the financial viability of cryptocurrency mining setups powered by off-grid solar photovoltaic (PV) systems. The model considers the features of mining hardware, the network attributes, the price of virtual currency and the solar potential of the installation site, to predict the payback period of the investment in months. As a case study, the feasibility of mining using various state-of-the-art Application-Specific Integrated Circuits (ASICs) and Graphics Processing Units (GPUs), powered by PV installed in New Zealand has been investigated. The results show that for ASICs setups, the initial cost is very high compared to GPU setups. However, considering the best-performing cryptocurrencies, the payback period for ASICs is much shorter than for GPU setups. This work will help to improve the sustainability of cryptocurrency mining businesses by reducing their dependence on exhaustible energy resources and their impact on the environment.

Summary:

Financial feasibility of off-grid PV cryptocurrency mining systems in New Zealand.
Compares both GPU and ASIC miners of various types mining a variety of cryptocurrencies.
Goal to reduce environmental impact of cryptocurrency miners by mitigating dependence of non-renewable energy sources.
Found ASIC miners have higher initial investment but shorter payback period.

Solar-Powered Cryptocurrency Mining Business Mining Business in New Zealand[edit | edit source]

Rehman, Naveed & Yap, Max & Horasia, Christopher. (2021). "Solar-Powered Cryptocurrency Mining Business Mining Business in New Zealand." 2021 OPSITARA Research Conference.

Abstract: Cryptocurrency mining refers to a process in which people earn monetary rewards against their invested computational resources for solving complex mathematical puzzles. These returns are directly proportional to the computing speed of the mining hardware, and thus its electric power requirements. Increasing commercial interest in cryptocurrency mining is promoting energy wastage and greenhouse gas emissions on a huge scale, which is becoming an alarming global sustainability issue. An alternative approach would be to power the mining hardware using renewable energy resources. This paper investigates the profitability of investment in solar photovoltaic (PV)-powered cryptocurrency mining. Considering the current trends, Ethereum (ETH) was chosen as the mining currency. “Bitmain Antminer E9”, which is the state-of-the-art Application-Specific Integrated Circuit (ASIC) hardware, was selected as the mining machine. Simulations, performed for various cities of New Zealand, showed a daily revenue and payback period of $288 ($2,019 weekly) and less than one year on average, respectively. This was obtained with an initial investment of $100,000, assuming that the ETH market price doesn’t fall below $3,320. To power up the system, a 23kW PV array would be required, along with a battery bank capacity of 7,625 Ah. The underlying technical and financial assumptions are also discussed. Apart from the commercial value of this research, the study serves as an interesting technology-oriented business case for engineering and business students.

Summary:

Introduces the concepts of cryptocurrency, mining, blockchain, and photovoltaics.
Conducted a literature review identifying a lack of studies done on solar-powered cryptocurrency mining.
Previous research has been a build and test approach and not testing the viability beforehand method.
Compares GPU and ASIC miners with solar panels from three distinct companies.
Tested in various cities in New Zealand.
Found PV systems required for ASIC mining are nine times larger than what is required for GPU miners.
PV powered ASIC system costs 11 times as much as the GPU one.
Daily revenue is 57 times larger for ASIC than the GPU with a payback period three times shorter.

Solar Micro-Mining on the Bitcoin Blockchain[edit | edit source]

Lippman, A., & Ekblaw, A. (2016). "Solar Micro-Mining on the Bitcoin Blockchain." Viral Communications.

Abstract: Bitcoin generates net-new value from "mining" in a distributed network. In this work, we explore solar micro-mining rigs that transform excess energy capacity from renewable energy (hard to trade) into money (fungible). Each rig runs a small Bitcoin miner and produces Bitcoin “dust” for micropayments. We envision these micro-miners populating a highly distributed network, across rooftops, billboards, and other outdoor spaces. Where systematic or environmental restrictions limit the ability to freely trade the underlying commodity, micro-mining produces new economic viability. Renewable energy-based, micropayment mining systems can broaden financial inclusion in the Bitcoin network, particularly among populations that need a currency for temporary store of value and must rely on flexible electricity off the grid (e.g., unbanked populations in the developing world). This exploration seeds a longer-term goal to enable open access to digital currency via account-free infrastructure for the public good.

Summary:

Explores the use of small scale solar-powered Bitcoin mining using inexpensive equipment.
Low energy background "dust mining" (small amounts of Bitcoin produced).
Additions to existing solar grids provide a supplemental source of Bitcoin dust for micropayment needs.
Bitcoin dust can facilitate data sharing, metering, and secure payments.
Grants access to open source digital currency to through account-free infrastructure to help the unbanked populations.
Highly distributed network to run in the background of other solar panel uses.
Sustainable green alternative to cryptocurrency mining to facilitate blockchain applications and micropayments.

CRYPTOCURRENCY AND CLIMATE CHANGE: AN OVERVIEW[edit | edit source]

Egiyi, M. A., & Ofoegbu, G. N. (2020). "Cryptocurrency and climate change: An overview." International Journal of Mechanical Engineering and Technology (IJMET), 11(3), 15-22.

Abstract: Cryptocurrencies in recent years, have emerged as an innovative means of carrying out online financial transactions, but concerns have been raised among experts about their impact on our environmental. Cryptocurrencies place enormous demand on the energy system, and this increases carbon emissions which sequentially adds up to the overall effects of global warming. However, the technology that powers bitcoin (blockchain) should be considered for future adoption. The environmental hazard regarding cryptocurrency usage stems from the large carbon footprint left by such small share of global cashless transactions, and its potential to be broadly integrated into current technologies. This study examines the impact of cryptocurrency on the environment with its focus on climate change (Global warming). Although the fate of bitcoin is currently unpredictable, it can be projected that if its rate of adoption is accelerated, its electricity demand is capable of producing sufficient emissions to surpass 2°C of global warming in a few decades. The study recommends that further development in cryptocurrencies should analytically aim to reduce power demand so as to avoid the potentially demoralizing consequences of 2OC of global warming.

Summary:

Cryptocurrency mining has the capability of raising global temperatures by 2 degrees Celsius in 16 to 22 years depending on adoption.
Transition to alternative energy sources like solar can prevent this impact.
High installation fees of renewable energy systems remains a prominent barrier.
Concept of cryptocurrency alone does not present a threat to the environment.
Renewable energy systems can help developing countries avoid intensive fossil-fuel industrialization.
Energy efficiency is another method to reduce the effects of climate change from electricity production for mining.

Reducing Resource and Energy Consumption in Cryptocurrency Mining by using both Proof-of-Stake Algorithm and Renewable Energy[edit | edit source]

Gundaboina, L., Badotra, S., & Tanwar, S. (2022, March). "Reducing Resource and Energy Consumption in Cryptocurrency Mining by using both Proof-of-Stake Algorithm and Renewable Energy." In 2022 International Mobile and Embedded Technology Conference (MECON) (pp. 605-610). IEEE.

Abstract: Cryptocurrency is a relatively new financial sector combination of encryption and currency that is gaining popularity throughout the world. The renewable energy business is likely to be transformed by blockchain technologies. However, no study has been conducted on the use of digital currency. As a result, the focus of this study is on a number of mining potency tests, notably for dogecoin mining. Bitcoin and other cryptocurrencies have received a lot of attention in recent years. Mining generates bitcoins as a fee for corroboratory dealings. This methodology requires a large quantity of process power and electricity. Mining used to be done on personal computers, but now specialized equipment has been designed to boost the mining pace while simultaneously increasing power consumption. As a result, the goal of this study is to look at the influence of hardware efficiency and determine if changing the algorithm to Proof-of-Stake (POS) and using renewable energy as a source of power for mining cryptocurrency will reduce the consumption, improve the mining process, and increase mining profit. During this study, mineworker performance and therefore the profitableness of mining cryptocurrency with the assistance of solar renewable energy, because it is the main supply for mining dogecoin, and we even went through the method of mining dogecoin with the assistance of Nvidia RTX 3080, which could be a non-LHR card, have been performed with and without overclocking the GPU. Considering renewable energy because the supply for mining helps the miners and therefore the setting.

Summary:

Evaluates the effect on profitability and energy consumption of mining Dogecoin by transitioning to Proof of Stake (PoS) and using a solar power energy source.
Nvidia RTX 3080 GPU was used.
Renewable energy mining can increase profitability, reduce financial risk, and convert waste into value.
PoS reduces the number of miners require to verify transaction, reducing consumption and improving efficiency.
Mining Bitcoin produces a lot of electrical waste with ASIC mining components that deteriorate.

Cryptocurrency & Its Impact on Environment[edit | edit source]

Mohsin, K. (2021). "Cryptocurrency & Its Impact on Environment." International Journal of Cryptocurrency Research.

Abstract: Cryptocurrencies have gone a long way since their inception. While the conventional financial sector initially dismissed digital currencies as tools for crooks and speculators, the sector has made considerable progress in establishing itself as a genuine and (possibly) world-changing arena. There are still concerns about the long-term effects of widespread cryptocurrency usage. Many skeptics and environmentalists, in particular, have expressed worry about the energy consumption of cryptocurrency mining, which may result in increasing carbon emissions and climate change. The mainstreaming of cryptocurrency, as it has been dubbed, is clearly a significant event in the world of finance. It's also a significant event in the world of, well, the globe. Whether you like cryptocurrencies or oppose them, there's no denying that bitcoin and other proof-of-work blockchains use massive amounts of energy.

Summary:

Bitcoin mining currently constitutes about 1% of the global energy use.
Major concern is when Bitcoin price rises and mining become less efficient while throughput remains constant.
More core computing power will be required to mine Bitcoin as the mining difficulty increases in the future due to the Bitcoin havening every four years.
Every year between 8 to 12 thousand tons of electronic garbage is created as ASIC Bitcoin miners cannot be recycled.
Reducing energy consumption with be crucial for the coexistence of cryptocurrency and the environment in the future.

Cryptodamages: Monetary value estimates of the air pollution and human health impacts of cryptocurrency mining[edit | edit source]

Goodkind, A. L., Jones, B. A., & Berrens, R. P. (2020). "Cryptodamages: Monetary value estimates of the air pollution and human health impacts of cryptocurrency mining." Energy Research & Social Science, 59, 101281.

Abstract: Cryptocurrency mining uses significant amounts of energy as part of the proof-of-work time-stamping scheme to add new blocks to the chain. Expanding upon previously calculated energy use patterns for mining four prominent cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Monero), we estimate the per coin economic damages of air pollution emissions and associated human mortality and climate impacts of mining these cryptocurrencies in the US and China. Results indicate that in 2018, each $1 of Bitcoin value created was responsible for $0.49 in health and climate damages in the US and $0.37 in China. The similar value in China relative to the US occurs despite the extremely large disparity between the value of a statistical life estimate for the US relative to that of China. Further, with each cryptocurrency, the rising electricity requirements to produce a single coin can lead to an almost inevitable cliff of negative net social benefits, absent perpetual price increases. For example, in December 2018, our results illustrate a case (for Bitcoin) where the health and climate change “cryptodamages” roughly match each $1 of coin value created. We close with discussion of policy implications.

Summary:

This study evaluates the health and climate damages that cryptocurrency mining causes from a financial perspective.
Emission data was collected by measuring a country's total electricity generation by burning fossil fuels emitting four pollutant gasses.
Emission data was combined with the amount of electricity required to mine one coin to create an average emission per coin value.
CO2 emissions were used to measure the climate damage impact per coin mined.
The cost to create $1 of Bitcoin value in the use was a yearly average of $0.49 of health and climate damages in 2018.
The increasing electricity requirement to mine Bitcoin will require price appreciation into perpetuity to sustain a positive net social benefit.
Renewable energy sources present a solution to pollutant gas emissions from fossil fuel energy production and mitigates the impact on climate and health.

Quantification of energy and carbon costs for mining cryptocurrencies[edit | edit source]

Krause, M. J., & Tolaymat, T. (2018). "Quantification of energy and carbon costs for mining cryptocurrencies." Nature Sustainability, 1(11), 711-718.

Abstract: There are now hundreds of cryptocurrencies in existence and the technological backbone of many of these currencies is blockchain—a digital ledger of transactions. The competitive process of adding blocks to the chain is computation-intensive and requires large energy input. Here we demonstrate a methodology for calculating the minimum power requirements of several cryptocurrency networks and the energy consumed to produce one US dollar’s (US$) worth of digital assets. From 1 January 2016 to 30 June 2018, we estimate that mining Bitcoin, Ethereum, Litecoin and Monero consumed an average of 17, 7, 7 and 14 MJ to generate one US$, respectively. Comparatively, conventional mining of aluminium, copper, gold, platinum and rare earth oxides consumed 122, 4, 5, 7 and 9 MJ to generate one US$, respectively, indicating that (with the exception of aluminium) cryptomining consumed more energy than mineral mining to produce an equivalent market value. While the market prices of the coins are quite volatile, the network hashrates for three of the four cryptocurrencies have trended consistently upward, suggesting that energy requirements will continue to increase. During this period, we estimate mining for all 4 cryptocurrencies was responsible for 3–15 million tonnes of CO2 emissions.

Summary:

Measures the electricity consumption of mining four major cryptocurrencies in 2018.
Comparison to conventional mining finds that cryptocurrency mining consumes more energy to produce $1 USD with the exception of aluminum.
As hash rates continue to rise, energy consumption to mine cryptocurrencies will rise.
Approximately 15 million tonnes of CO2 emission came from mining these four cryptocurrencies.

The Economic and Environmental Impact of Bitcoin[edit | edit source]

Badea, L., & Mungiu-Pupӑzan, M. C. (2021). "The economic and environmental impact of bitcoin." IEEE Access, 9, 48091-48104.

Abstract: The controversies surrounding Bitcoin, one of the most frequently used and advertised cryptocurrency, are focused on identifying its qualities, the advantages and disadvantages of using it and, last but not least, its ability to survive over time and become a viable alternative to the traditional currency, taking into account the effects on the environment of the technology used to extract and trade it. Based on such considerations, this article aims to provide an overview of this cryptocurrency, from the perspective of conducting a systematic review of the literature dedicated to the economic and environmental impact of Bitcoin. Using peer-reviewed articles collected from academic databases, we aimed at synthesizing and critically evaluating the points of view in the scientific literature regarding the doctrinal source of the emergence of Bitcoin, the identity of this cryptocurrency from an economic point of view, following its implications on the economic and social environment. Subsequently, this research offers the opportunity of evaluating the level of knowledge considering the impact of Bitcoin mining process on the environment from the perspective of the energy consumption and CO 2 emissions, in order to finally analyze Bitcoin regulation and identify possible solutions to reduce the negative impact on the environment and beyond. The findings suggest that, despite high energy consumption and adverse environmental impact, Bitcoin continues to be an instrument used in the economic environment for a variety of purposes. Moreover, the trend of regulating it in various countries shows that the use of Bitcoin is beginning to gain some legitimacy, despite criticism against this cryptocurrency.

Summary:

Cambridge Bitcoin Electrical Consumption Index (CBECI) and the Bitcoin Energy Consumption Index (BECI) by Digiconomist were used to estimate global energy consumption from Bitcoin mining.
Comparison of existing banking system, paper currency minting, gold mining, and Bitcoin mining on cost, emissions, and energy consumption.
Bitcoin offers a lower environmental cost than printing money and the traditional banking system.
Finding green sustainable solutions to the highlighted environmental drawback of Bitcoin can ensure viability of the technology for the future.

Articles in the media[edit | edit source]

Block and Blockstream are partnering with Tesla on an off-grid, solar-powered Bitcoin mine in Texas[edit | edit source]

Peters, J. (2022, April 8). "Block and Blockstream are partnering with Tesla on an off-grid, solar-powered Bitcoin Mine in Texas." The Verge.

Summary:

Block, Blockstream, and Tesla partnered to create an open-source Bitcoin mine powered by 3.8-megawatt Solar PV array and 12 megawatt-hour Megapack.
Goal to be complete construction by the end of 2022.
Goal to have a zero-emission infrastructure that can foster economic growth.

Economics of Bitcoin Mining with Solar Energy[edit | edit source]

Frumkin, D. (2021, June). "Economics of Bitcoin Mining with Solar Energy" Braiins.

Summary:

Financial feasibility projection analysis of an intermittent solar power Bitcoin mining and its environmental impact.
The waste gas in the USA can power the entire Bitcoin network.
Combining natural gas and electricity in Bitcoin mining prevents flaring, venting, and methane emissions which are 25 times more harmful to than environment than CO₂.
Raw energy consumption does not determine the final environmental impact.
Logic of the model is to satisfy grid-demand first, then determine if the electricity should be stored in batteries or used to mine Bitcoin.
Network difficulty to mine is increasing by 8.42% per month.
Various scenarios are analyzed in comparing profitability to simply purchasing Bitcoin with the capital expenditure amount.
The key to remaining profitable is Bitcoin's price and uptime of the operation.
Less than 60% uptime and most operations are not viable even with cheap electricity.

Green Innovation in Bitcoin Mining: Recycling ASIC Heat[edit | edit source]

Gronowska, M. (2021, February). "Green Innovation in Bitcoin Mining: Recycling ASIC Heat" Braiins.

Summary:

Discusses the role that cleantech will play in the future of the cryptocurrency mining industry through five projects that repurpose heat produced by ASIC miners.
Re-use of low-grade heat exhausted from miners offset electrical consumptions and reduces carbon emissions.
79% of operating expenses in mining is electricity cost.
Canada's Mintgreen project uses energy twice as fast to mine bitcoin first and then produce industrial heating with zero carbon emissions.
Sweden's Genesis Mining Greenhouses are in the early stages of creating containers that direct waste heat into greenhouses to grow fruits and vegetables.
A 600 kW container can increase temperatures by 20 degrees and the greenhouse can triple in size in subarctic weather.
Netherlands GreenMine Container is using liquid immersion cooled mining containers that converts exhaust heat into hot water to heat greenhouses and is scalable.
France Sato project from WiseMining which is a Bitcoin water boiler to heat homes.
Immersion cooling allows ASICs to run more efficiently as the exhaust fans are obsolete, less overheating, and extends lifetime of miners.

Solar Powered Bitcoin Mining: Does solar mining crypto work?[edit | edit source]

Browning, K. (2022, May). "Solar Powered Bitcoin Mining: Does solar mining crypto work?" Climatebiz.

This article breaks down the specifications for solar powered Bitcoin mining.
Need to determine the wattage draw from your mining rig and then how much sunlight the area gets to calculate how many solar panels are required.
Works out the costs of the operation with comprehensive expense tables on solar panels and mining rigs.
When you reach utility grade solar panel system sizes the cost per watt decreases significantly.

Is Solar-Powered Cryptocurrency Mining the Next Big Thing?[edit | edit source]

Reiff, N. (2019, June). "Is Solar-Powered Cryptocurrency Mining the Next Big Thing?" Investopedia.

Summary:

This article discusses a cryptocurrency mining operation using solar panels in the dessert.
An individual operating this system for over a year is expanding to 1,000 Antminer ASIC S9 mining rigs.
Profitability remains as long as Bitcoin remains above $2,000.
Cost of mining is virtually free for these miners.
Iceland has become a popular place to mine due to its fast and limitless internet.
Risks to consider are overheating mining rigs in the desert and price of cryptocurrencies effecting profitability.

How Many Solar Panels Do I Need To Mine Bitcoin?[edit | edit source]

Bruce, J. (2021, August). "How Many Solar Panels Do I Need To Mine Bitcoin?". DIY Solar Shack.

Summary:

Calculations of what is required to mine cryptocurrencies and how to set-up a solar powered system.
Multiple GPU mining rig require about 6000 watts to operate during the day and charge batteries for the night.
A 500 Ah battery is required for this system.
Location and type of mining rig will determine the number of panels and battery needed.
Traditional cryptocurrency mining is unsustainable in terms of carbon footprint.
Battery storage in combination with PV systems can give miners more energy independence.

Will Mining Cryptocurrency in the Desert Using Solar Power Make You Rich?[edit | edit source]

Buntinx, JP. (2017, June). "Will Mining Cryptocurrency in the Desert Using Solar Power Make You Rich?" The Merkle News.

Summary:

Profitable cryptocurrency mining in the desert relies on keeping hardware from overheating, electricity costs and quality internet.
Minus the initial investment into solar panels, electricity costs which are fundamental to mining is free.
Good internet connection mitigates latency to mining pools and maximizes profitability.
Greenhouses can help regulate temperature to stop miners from overheating.
The miner in question sells his previous miner models to upgrade when new hardware is announced by Bitmain in China.

SOLAR-POWERED CRYPTO MINING: CRYPTOCURRENCY MINING WITH SOLAR PANELS[edit | edit source]

"Solar-Powered Crypto Mining: Cryptocurrency Mining with Solar Panels." Freedom Solar. (2022, January).

Summary:

Discusses the solar panel requirements to begin mining Bitcoin using solar-powered energy.
Compares pros of the system such as immunity to grid interruptions, minimal ongoing costs, and a better environmental impact.
Major drawback is the initial set-up cost.
Identifies where in the Unites States (US) solar-powered cryptocurrency mining is most prominent.
US offers a 26% tax deductible for installed solar systems before the year 2023, and a 22% tax deductible after the year 2023.

Solar-Powered Bitcoin Mining Could Be a Very Profitable Business Model[edit | edit source]

Hunt, T. (2017, September). "Solar-Powered Bitcoin Mining Could Be a Very Profitable Business Model" Greentech Media.

Summary:

The articles evaluates solar-powered cryptocurrency mining to maximize profitability and mitigate environmental impact.
Negative priced grid-power and low cost of electricity is analyzed with the "Duck Curve: displaying daily electricity demand.
Renewable energy tax benefit is absorbed by tax liability of Bitcoin sales.
Off-grid mining prevents the grid from supplementing operations when overcast exists resulting in lower revenue.
Sells powerto the grid during peak hours.

Uzbekistan legalizes solar-powered crypto mining[edit | edit source]

Mamatkulov, M., Birsel, R. (2022, May). "Uzbekistan legalises solar-powered crypto mining" Reuter.

Summary:

Presidential decree state that domestic and foreign solar-powered cryptocurrency mining companies are exempt from income tax in Uzbekistan.
Companies connected to the grid will pay double the price for electricity.
Registration from the Uzbek National Agency for Perspective Projects is required.

Solar + Battery + Bitcoin Mining[edit | edit source]

Winton, B. (2021, April). "Solar + Battery + Bitcoin Mining" Medium.

Summary:

Bitcoin mining can increase the proportion of renewable energy supplied to the grid.
Can supply up to 40% of power to the grid before utilities require higher prices.
With solar power and batteries, Bitcoin mining is capable of satisfying 99% of grid demand when scaled.
Comparison graphs that identify the point of maximum profitability utilizing battery capacity and solar panel power.
Three part system can be integrated at the residential level especially if waste heat from mining can be utilized.

Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid[edit | edit source]

Redman, J. (2019, May)."Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid" Bitcoin.com.

Summary:

Comparison of selling surplus solar energy to the grid or using it to mine Bitcoin.
Potential to be 10 times more profitable than selling energy to the grid.
Mitigate risk by selling to the grid if Bitcoin's price falls below profitability.
Major mining operations typically use hydro and geothermal renewable energy.

Report: Bitcoin Mining Doesn't Fuel Climate Change, It Benefits the Global Economy[edit | edit source]

Gogo, J. (2018, December). "Report: Bitcoin Mining Doesn't Fuel Climate Change, It Benefits the Global Economy" Bitcoin.com.

Summary:

Challenges the claim that Bitcoin mining consumes mostly coal-generated electricity contributing to global warming.
77.6% of miner globally, use renewable energy sources.
Self-serving cost efficiencies is the catalyst.
Chinese grid operators have refused to accept surplus energy due to large energy investments in the Chinese energy sector.
Much of China's Bitcoin mining resulted from not letting energy go to waste.
Sichuan a region in China comprises 48% of the global cryptocurrency mining share with a 90.1% renewables penetration rate.

Which is the most environmentally friendly?[edit | edit source]

"Which is the most environmentally friendly?" TRG Datacenters. (2021, May).

Summary:

Mining process of cryptocurrencies and Bitcoin specifically are energy intensive.
Solving complex mathematical algorithms is require to create new Bitcoin through transaction verifications.
Varying cryptocurrencies have different difficulties to solve these algorithms requiring more or less computational power and therfore energy consumption.
As cryptocurrency popularity and adoption increase, energy consumption will subsequently follow.
New eco-friendly cryptocurrencies are arising such as IOTA which uses the "Tangle" instead of the Blockchain, eliminating the need for miners.

Citations[edit | edit source]

Browning, K. (2022, May). "Solar Powered Bitcoin Mining: Does solar mining crypto work?" Climatebiz.
Mamatkulov, M., Birsel, R. (2022, May). "Uzbekistan legalises solar-powered crypto mining" Reuter.
Gundaboina, L., Badotra, S., & Tanwar, S. (2022, March). "Reducing Resource and Energy Consumption in Cryptocurrency Mining by using both Proof-of-Stake Algorithm and Renewable Energy." In 2022 International Mobile and Embedded Technology Conference (MECON) (pp. 605-610). IEEE.
"Solar-Powered Crypto Mining: Cryptocurrency Mining with Solar Panels." Freedom Solar. (2022, January).
Nikzad, A., & Mehregan, M. (2022). "Techno-economic, and environmental evaluations of a novel cogeneration system based on solar energy and cryptocurrency mining." Solar Energy, 232, 409-420.
Peters, J. (2022, April 8). "Block and Blockstream are partnering with Tesla on an off-grid, solar-powered Bitcoin Mine in Texas." The Verge.
Hosseini, S. E., & Kamyab, H. (2022). "Sustainable energy and digital currencies: challenges and future prospect." Future Technology, 1(1), 26-32.
Hojjat, M., & Kalali, M. H. (2021, December). "Techno-economic analysis of a grid-connected hybrid PV power plant integrated with a crypto currency mining system." In 2021 11th Smart Grid Conference (SGC) (pp. 1-6). IEEE.
Horasia, C., ur Rehman, N., Yap, M., & Rehman, A. (2021, December). "Sustainable Cryptocurrency Mining." Asia-Pacific Solar Research Conference.
Formosa, D., & Azzopardi, B. (2021, November). "THE APPLICATION OF BLOCKCHAIN IN COMMUNITY ENERGY TRADING: A STUDY ON SOLAR ENERGY EXCHANGES IN MALTA." 38th European Photovoltaic Solar Energy Conference and Exhibition.
Bruce, J. (2021, August). "How Many Solar Panels Do I Need To Mine Bitcoin?". DIY Solar Shack.
Frumkin, D. (2021, June). "Economics of Bitcoin Mining with Solar Energy" Braiins.
"Which is the most environmentally friendly?" TRG Datacenters. (2021, May).
Winton, B. (2021, April). "Solar + Battery + Bitcoin Mining" Medium.
Gronowska, M. (2021, February). "Green Innovation in Bitcoin Mining: Recycling ASIC Heat" Braiins.
Eid, B., Islam, M. R., Shah, R., Nahid, A. A., Kouzani, A. Z., & Mahmud, M. P. (2021). "Enhanced Profitability of Photovoltaic Plants By Utilizing Cryptocurrency-Based Mining Load." IEEE Transactions on Applied Superconductivity, 31(8), 1-5.
Fernando, Y., & Saravannan, R. (2021). "Blockchain Technology: Energy Efficiency and Ethical Compliance." Journal of Governance and Integrity, 4(2), 88-95.
Bitir-Istrate, I., Gheorghiu, C., & Gheorghiu, M. (2021). "The transition towards an environmental sustainability for Cryptocurrency mining." In E3S Web of Conferences (Vol. 294, p. 03004). EDP Sciences.
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