The new facility built by CleanSpark , a Las Vegas-based energy company turned bitcoin miner , is one marker of the firm ’ s commitment to sustainability and reducing its carbon footprint , its managers say .
The oil immersion saves on energy that would normally power fans to cool the machines while boosting their hash rate — the computational power used in bitcoin mining . The result is computers that could last up to 30 % longer than fan-cooled units , reduced industrial e-waste and no complaints from neighbors about noise pollution .
“ It ’ s a lot more efficient than a traditional air-cooled facility ,” says Isaac Holyoak , chief communications officer , who leads CleanSpark ’ s environmental , social and governance ( ESG ) program . “ It ’ s one of the ways we work to make our operation sustainable , not only in terms of our energy sources but in terms of the impact we hope to have on the communities we operate in .”
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It
’ s one of the ways we work to make our operation sustainable , not only in terms of our energy sources but in terms of the impact we hope to have on the communities we operate in .” — Isaac Holyoak ,
chief communications officer , CleanSpark
Explosive growth in cryptocurrency mining has made the sector a major global energy consumer , outstripping the consumption of some midsized economies . Boosting efficiency and tapping renewable energy sources have therefore become paramount for miners under pressure to reduce their environmental impact .
Net-zero goals at risk The crypto mining industry consumed between 120 and 240 billion kilowatthours of electricity per year up to August 2022 , equivalent to 0.4 – 0.9 % of global consumption , according to estimates in a report released by the White House . Such a range exceeds the global share of countries like Argentina and Australia .
With the U . S . hosting about a third of global crypto-asset operations , policymakers fear the industry could hinder the country ’ s efforts to achieve its net-zero carbon pollution commitment by 2050 .
Bitcoin , the most dominant crypto asset , accounts for up to three-quarters of the industry ’ s energy consumption alone . The power demands are tied to its underlying proof of work protocol , the decentralized mechanism involved in creating and verifying coins . It involves high-powered computers competing to solve complex cryptographic problems , with the winner adding a block of transactions to the digital ledger known as the blockchain , and receiving new bitcoins as payment along with a transaction fee .
The more bitcoins are mined , the more computing power is needed to solve increasingly complex problems to earn the next coin . Long gone are the days when enthusiasts could hope to mine bitcoin using an average home computer .
Global regulators circle amid market volatility The industry ’ s power consumption has alarmed environmentalists and raised the attention of global regulators . China , once a major crypto mining hub , banned all digital asset mining and transactions in 2021 .
PHOTOS COURTESY OF CLEANSPARK
Bitcoin mining machines are submerged in biodegradable oil . The cooling liquid doesn ’ t short out the electronics because it ’ s nonconductive .
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