Faculty
Ivey Business School
Supervisor Name
Dr. Joshua M. Pearce
Keywords
Cryptocurrency Mining, Solar Photovoltaics, Economics, Open-Source, Sustainability, Energy
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Description
Mainstream media has criticized the carbon footprint of the Bitcoin network due to its reliance on non-renewable energy sources that produce greenhouse gas emissions. To combat the environmental impact of Bitcoin on climate change and allow for sustainable growth of the network, miners who operate the network need to transition to renewable energy sources and maintain profitable operations.
This project analyzes the feasibility of transitioning the Bitcoin mining process toward a solar photovoltaic energy source to create an environmentally sustainable means to keep the network operational. Experimental data collected from industrial mining operations accurately calculate the electrical expenses. Net capital costs of photovoltaic system integration into three different mining operations in six distinct locations were analyzed. Economic analysis under various sensitivities was simulated to provide profitability expectations for financial feasibility. This study aims to provide the average business with the knowledge to make an informed decision on whether to pursue this venture from a financial and environmental perspective.
Acknowledgements
This research was supported by the Thompson Endowment, Western University USRI, and Natural Sciences and Engineering Research Council of Canada.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Document Type
Video
Economics of Open-Source Solar Photovoltaic Powered Cryptocurrency Mining
Mainstream media has criticized the carbon footprint of the Bitcoin network due to its reliance on non-renewable energy sources that produce greenhouse gas emissions. To combat the environmental impact of Bitcoin on climate change and allow for sustainable growth of the network, miners who operate the network need to transition to renewable energy sources and maintain profitable operations.
This project analyzes the feasibility of transitioning the Bitcoin mining process toward a solar photovoltaic energy source to create an environmentally sustainable means to keep the network operational. Experimental data collected from industrial mining operations accurately calculate the electrical expenses. Net capital costs of photovoltaic system integration into three different mining operations in six distinct locations were analyzed. Economic analysis under various sensitivities was simulated to provide profitability expectations for financial feasibility. This study aims to provide the average business with the knowledge to make an informed decision on whether to pursue this venture from a financial and environmental perspective.