In the week of January 15th, notoriously volatile virtual currencies plunged in the wake of an announcement by the South Korean government that it was preparing to ban cryptocurrency trading as part of a wider crackdown – this follows the near daily all-time highs achieved by certain tokens.
Yet, while the value of cryptocurrencies has suffered its ups and downs, the challenges associated with mining them have only increased. Solving the complex computational algorithms to verify transactions consume vast amounts of power, which increases as the time required to mine more tokens extends. Cryptocurrency mining now uses more power than 159 countries. While the typical hardware used for mining has a small physical footprint (unless you’re a full server farm dedicated to cryptocurrency mining), when the additional cost to power and cool the racks has been considered, it can cut deep into potential profits.