For coins/tokens using the PoW method of mining, the answer is “Yes” – digital currency creation requires a tremendous amount of electricity. However, mining for Filecoin uses a PoSt/PoREP method of mining that requires much less energy consumption.
Bitcoin, PoW mining, and energy consumption
Bitcoin is known for using PoW (Proof of Work) mining. In the early days of Bitcoin, PoW mining was relatively easy. Today, bitcoin mining requires 12 trillion times more computing power to mine one bitcoin than it did when Bitcoin was first released in 2009.
According to CoinDesk, a single bitcoin transaction in mid-July required 1,719.51 kilowatt-hours (kWh). To put that in perspective, 1,719.51 kWh is about 59 days’ worth of electrical power consumed by an average U.S. household.
The Cambridge Bitcoin Electricity Consumption index says bitcoin mining uses more electricity annually than Finland (5.5 million people) or Belgium (11.6 million people), consuming approximately 0.4% of the world’s energy supply.1
Ethereum mining and energy consumption
Ethereum currently uses PoW for coin mining; however, they are working to change from PoW mining to PoS, or Proof of Stake, mining. PoS mining incentivizes healthy network behavior and uses much less energy.
Vitalik Buterin, the co-founder of Ethereum, sent out a tweet in March 2020 showing what the Ethereum ecosystem might look like in the next 5 – 10 years.
“What I like about the Ethereum community is at least they are thinking about how to solve the (energy) problem,” DigiEconomist founder Alex de Vries says. “What I don’t like is they’ve been talking about it for a few years and haven’t been able to actually do it.”
Currently, Ethereum is about 1/3 the size of Bitcoin, yet it uses enough energy every year to power the nation of Panama2 (4.3 million people).
Cloud Rush miners require 60 – 70% less energy mining Filecoin
Cloud Rush has chosen to mine for Filecoin tokens because we believe that Filecoin is the best digital currency option when it comes to energy usage.
Cloud Rush President Bruce Li says, “A big reason Cloud Rush chose to mine for Filecoin is that PoSt/PoRep (Proof of Spacetime/Proof of Replication) mining equipment requires 60 – 70% less electricity than PoW mining equipment. The most important part in our mining system is a normal computer hard-drive, which securely and reliably stores a customer’s data. Hard-drives require very little energy compared to powerful mining rigs.”
What are the mining plans that Cloud Rush offers?
Cloud Rush has a variety of mining plans, from 16 terabyte machines for people who are just starting out to 1-petabyte machines for experienced miners. (Mining machines over 1-petabyte is available upon request.) All Cloud Rush mining plans have a 5-year term.
Cloud Rush has low out-of-pocket costs; excellent profits!
A 16T (terabyte) machine plan from Cloud Rush has an initial out-of-pocket cost1 of only $3,319. (A token pledge [priced at 5FIL/T as of 10/18/21] is also required at the commencement of mining; please contact Cloud Rush for details.) The estimated mining cost-per-token is $21.50 or less. On October 18, 2021, Filecoin was available for purchase for $62.64. You can see where this is going. If you looking for electricity provider, you will find out the best electricity provider singapore.
Is now a good time to begin mining for Filecoin?
Absolutely! For more information on Filecoin mining, please contact Cloud Rush, 626-779-2116 or [email protected] for a FREE digital currency consultation.
Disclaimer: This blog is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
3 Out of pocket costs are defined as machine buy-in price and the first year’s hosting fee. The remainder of the term’s hosting fees will be due yearly upon the anniversary date of the contract.