The Impact of Crypto Mining on Energy Costs
Unique Needs for Unique Clients
At Integrity Energy, we know that no two business or commercial consumers are alike. Energy needs vary widely by industry, with great variation arising even within the same business sectors. That’s why having a customized energy plan can be so important to a business's bottom line, especially if that client’s work product consumes a great deal of energy. One field of work that stands out as an example is the rapidly-expanding cryptocurrency (crypto) mining industry. The way these clients consume energy is entirely unique and requires customized delivery solutions.
What is Crypto Mining?
Crypto mining is the process of using computer code to generate cryptocurrency, which is secured in a blockchain. Industrial computers compete to be the first to secure a series of transactions called a block, which is then added to a blockchain. In an article for Forbes Richard Baker, CEO of miner and blockchain services provider TAAL Distributed Information Technologies explains, “The mining, or transaction processing, is accomplished by incredibly expensive and powerful computers whose sole function is to run algorithms to solve the mathematical problem that allows their owner to win a [crypto currency] block—and the revenue that comes with it.”
Crypto Mining and Energy Prices
So do energy prices really matter when you’re literally mining for money? The short answer is an empathetic, Yes! The first barrier for someone looking to establish a cryptocurrency mining operation is finding the space - these productions require a great deal of real estate to house the computers needed in a mining operation. Clients will often seek out less expensive, older buildings, unused factories, or even abandoned churches to reduce rent expenses so funds can cover energy costs instead. Often, mining operations determine where they set up shop based solely on an area’s energy costs. It’s that important because the energy consumption for a crypto mining operation is staggering. Many operations are run 24 hours a day, seven days a week.
Creative Solutions for the Atypical Consumer
This constant energy demand often requires some creative solutions from the energy experts at Integrity Energy. Taking advantage of off-peak pricing, for example, allows crypto mining clients to save on energy without sacrificing productivity. Not all suppliers are equipped to service a crypto mining operation; Integrity Energy’s knowledge of the supplier market allows our energy experts to connect clients with the best energy supply partner for their specific needs. Ensuring that the operation is outfitted with the appropriate energy meters is also important to guarantee there is no interruption in the energy supply. But, most importantly, shopping around for the best rate is crucial for crypto mining operations - just like any other business consumer!
The Future of Crypto Mining
It is apparent that the soaring cost of energy will not outweigh the value of cryptocurrency and the mining operations that produce it. That’s why green energy solutions are gaining popularity from mining operations of all sizes. Green energy initiatives and buybacks can be an effective solution to mitigating the environmental impact of such massive energy demand. Connecting consumers with these solutions is just one of the many ways Integrity Energy is committed to greener, more economical energy!
About Integrity Energy
The Energy Experts at Integrity Energy are committed to helping you save money on electricity costs in deregulated energy markets. We partner with business consumers like you to provide detailed information about your area's energy providers in a simple, easy-to-understand format. We will walk you through the process of getting started with the energy provider of your choice, from start to finish.
Our team at Integrity Energy stays up-to-date on the energy market and monitors changes that may cause fluctuations in electric prices. We also monitor the market for current trends and new opportunities to reduce prices, while meeting a client’s energy needs. Contact us today for your personalized quote!