Cryptocurrency mining is quickly gaining traction across a variety of industries. But did you know that it also offers a simple way for small hydro owners to significantly improve the economics of their operation?
Cryptocurrency mining can seem very complex. To put it simply, think of it like growing flowers in a garden to sell at the market. To grow flowers, you have the land resource and the seed, and you use specialized garden tools to plant, care for, and harvest the flowers. If the weather is favorable and people want to buy the flowers you grow, you can exchange them at the farmer’s market for dollars.
Just as a gardener uses tools to create something of value to exchange for traditional currency, cryptocurrency mining uses an electrical power resource (such as hydropower) and specialized cryptomining equipment to produce cryptocurrency. The cryptocurrency can be sold for dollars.
What does cryptocurrency mining have to do with hydro?
Those of us who work in the hydropower industry appreciate the value of hydropower. It is the oldest renewable energy source. It will continue to become more valuable as the transition to renewable electricity sources continues. However, for small hydro owners, the economics may not currently reflect its future value.
Cryptocurrency mining can help rectify this by allowing owners to diversify. They can take a small portion of the energy created with hydropower to mine cryptocurrency, which can then be exchanged for dollars. Using hydropower, a renewable energy source, to mine cryptocurrency also serves to mitigate concerns regarding the use of fossil fuels that can be used to mine cryptocurrency.
Hydropower will continue to be a vital part of serving our energy needs as we move forward. Using a portion of hydropower to mine cryptocurrency offers a simple way for small hydro owners to diversify their income streams and use their hydroelectric project to its full advantage. It also offers an environmentally-friendly way to mine cryptocurrency. If you are interested in learning more, please do not hesitate to reach out to me for specific information.