Cryptocurrency mining using renewable energy. An eco-innovative business model.

Abstract

The purpose of the study was to explore and describe the phenomenon of cryptocurrency mining using renewable energy through the investigation of innovative business models. The focus was on crypto-mining companies located in Europe, which use renewable energy to power their operations. The aim of the research was to find answers to the research questions about sustainable cryptocurrency mining as a concept, about the future of the industry, as well as to identify if their business models can be considered eco-innovative. The study was limited to cover only the cryptocurrency mining centers that rely on renewable energy for their business and are situated in Europe. The theoretical studies included concepts of business model, eco-innovation and eco-innovation in business models. The empirical study consisted of three interviews with the representatives of three cryptocurrency mining centers that rely on renewable energy, as well as two e-mail interviews with expert cryptocurrency researchers. Additionally, information on cryptocurrency mining as a business and energy consumption by crypto-mining was gathered. The description of renewable energy was also covered. The results showed that cryptocurrency mining using renewable energy is a growing business niche driven by maximizing profits through using the cheapest renewable energy available. Such a business model could be defined as eco-innovative. The study also speculated on the potential future of crypto-mining and could not come to a definite conclusion. Ideas for future studies include cryptocurrency evolution and its applications and impact on other industries, and development and implementations of Blockchain technologies in various sectors.