One of Australia’s dirtiest coal plant which was closed in 2014 due to severe criticisms faced by environmentalists for producing more CO2 than any other coal powered station might now re-open to mine cryptocurrencies like Bitcoin, Litecoin etc.
IOT an Australian tech based firm has partnered with Hunter energy to build a blockchain center inside the coal-fired power station to provide cheap electricity for the blockchain applications. The company stated that their plan could create a mini silicon valley in Australia.
Bitcoin mining in Australia costs nearly $10,000, but the highly polluting coal-mine might bring down the cost and potentially even lower than the price of Bitcoin mining in China at $3000.
Bitcoin mining is the process that generates new Bitcoins while maintaining the networks shared transaction ledger. It consumes large amounts of electricity primarily because of the huge number of specialized ASICs [application-specific integrated circut] computers that are needed to undertake the calculations which serve to prove that work was done.
In 2018, cryptocurrency mining is estimated to consume more than 130 billion kWh of energy, equal to Argentina’s annual electricity consumption, and nearly thrice as much energy as it consumed in 2017.
An IOT spokesperson states that :
“The average consumer pays around 28 cents per Kilowatt-hour, with what IOT are doing its price is 8 cents at daytime and 5 cents at night time.”
The major drawback of this operation is that it would cause adverse effects on the environment due to the mine generating around 22,000 pounds of CO2 every hour. The estimates of each power station would be around 1.06 million tonnes of greenhouse gases each year as a result of the burning coal.
Abraham Cambridge CEO of Sun Exchange says:
“Blockchain, being one of today’s most forward-thinking industries, should not be looking backwards at coal to meet its energy needs, instead we should focus on deploying more clean energy capacity.”
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