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It isn’t a secret that Bitcoin and crypto mining are having a negative impact on the environment. The enormous amount of energy needed to solve the complex problems to mine new tokens means even more reliance on electricity generation. Ark Investment analysts say that about 76 percent of crypto mining uses renewable energy, while the remaining segment is done using coal-powered electricity. This has led Arctic countries to become a hotbed for crypto miners.
Russia’s Arctic region has attracted crypto miners as well.
The Siberian town of Norilsk is the home of Russian mining company BitCluster. In late 2020, BitCluster took over an abandoned nickel mining facility to build its crypto mining farm. Norilsk is a substantial source of mining precious metals like nickel, copper, and platinum.
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While Norilsk’s energy grid isn’t entirely renewable, it uses natural gas and hydro to generate its electricity. However, BitCluster won’t have to tap into the energy as much due to the extreme location and bitter temperatures. The average temperatures for Norilsk stay below freezing eight months out the year.
Source: bitcluster
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According to Bitcluster’s webpage, the company uses a unique canopy to protect the facility from the cold. “The warm air from the miners is mixed to prevent the snow from falling,” Bitcluster details. Also, Bitcluster says that its mining rigs are stored in various containers in the region that are usually covered in permafrost.
As Bitcoin and other altcoins become more popular and the demand increases, an emphasis will be placed on mining operations to mitigate energy concerns. As miners move north, undoubtedly, large investments will follow, which will bring additional development to the region.
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