The following trends will show how the Bitcoin mining industry is still building on past knowledge and experience and preparing for an expanded future.
That might be the biggest buzz item about Bitcoin mining today: energy use. Mining rigs use electricity for power, and large-scale mining operations are running thousands of miners at once. As we know, the mining process will use 110 terawatt hours per year of energy resources – the equivalent energy production of a small country.
One of the major trends we are seeing in Bitcoin mining today is the shift towards more renewable energy sources instead of carbon-based energy. Many people think that energy sources like coal are cheaper, which is not true. Because 90% hydro, 75% wind and 40% solar are still cheaper than coal. Increased use of renewable energy will be beneficial in the long term, for both industry and the environment. That’s why in the short term, even if profits are very high, operators should actively review their power supplies.
The good news is that Bitcoin mining operations have shifted to more renewable resources. The Bitcoin Mining Council estimates that worldwide, the Bitcoin mining industry’s sustainable electricity mix is 58.4% – an increase of 59% compared to 2021. This percentage makes it “one of the the most sustainable industries globally”.
Of course, there is still work to be done to ensure that Bitcoin mining has a sustainable future ahead. But the data shows that it’s headed in the right direction.
Cool and immerse in liquid
Imagine a room with thousands of excavators operating at full capacity and imagine how much heat they produce. Mining operations must always prepare ways to keep data centers cool. Therefore, liquid immersion cooling is an emerging trend.
Liquid immersion cooling involves placing mining rigs in a tank of oil-like liquid, which is then circulated through cooling towers to remove heat. This method ensures valuable mining equipment is not exposed to outside air, as dust or moisture can degrade the hardware. Liquid immersion cooling also reduces operating costs by up to 33%.
The chip shortage is creating a major global supply and demand crisis today. Demand for semiconductor chips has grown 17% since 2019 for use in cars, phones and tablets, home healthcare devices, AI, and more. – and for mining rigs. However, supply has not increased to meet that demand, even though semiconductor manufacturers are producing at 90% capacity.
When a new batch of chips is produced, they are distributed to the companies that need them the most – or those with the highest influence in the market, which are often not mining manufacturers. Certain in-demand chips can cause companies to wait up to a year to receive supplies.
What is the impact on mining operations? This means making short-term decisions is not a good option right now. Since mining rig manufacturers are backlogged and unable to fulfill orders in time, mining companies must plan their operations a year or more in advance through a solid model of the system. mining ecology, order early and wait.
“The major bottleneck across the board appears to be wafer manufacturing capacity, requiring a more permanent solution,” the U.S. Department of Commerce concluded. Until that “long-term solution” emerges, this chip shortage will likely continue into 2023, experts predict.
Overall, these trends point to a few important things happening in the Bitcoin mining industry. Above all, these trends show that Bitcoin mining has become a resilient industry and that despite current market challenges, mining is trending in the right direction.