Japan has quickly become one of the most prominent regions for Bitcoin and other cryptocurrencies. It is evident there will be some interesting Bitcoin-related ventures launching in this particular country. Especially in the mining industry, big things may be happening in the very near future. In particular, local renewable energy provider Looop has some ambitious plans for the cryptocurrency mining industry as a whole.
Looop Will Influence Bitcoin Mining in Japan
Cryptocurrency enthusiasts all over the world are well aware of how the profitability of cryptocurrency mining hinges on a few factors. These include not only the value of the currency being mined, but also the electricity costs associated with the mining process. In most regions of the world, this latter factor makes it almost impossible to profitably mine Bitcoin or any altcoins of value.
Thankfully, this situation may soon come to change in Japan. It seems Tokyo-based renewable energy firm Looop has some big plans in this regard. The company has been focusing on photovoltaic power in Japan for quite some time now. It has been around since March of 2011, which makes it one of the early adopters in Japan’s renewable energy sector right now. Ever since that time, Looop has made a lot of significant progress.
To put this into perspective, the company is also active in the worlds of wind, biomass, hydroelectric, geothermal, and solar power systems. It is likely that Looop will continue to make big headlines in the country over the coming years. With Japan’s retail power market no longer limited to a select few players, things are looking rather promising there. As of today, around 55,000 households across the archipelago use Looop’s electricity services, which indicates the company is growing in name recognition.
What makes this company of special interest to cryptocurrency miners is how it will provide a custom electricity plan to such users. Though this only applies to people in the Tokyo Electric Power Company service area, it is a worthwhile start nonetheless. Looop customers can sign up for a 1kW contract which will let them consume up to 250 kWh for a fixed price. Said price is capped at 6,170 yen, or just under US$55 at current conversion rates. This means every kWh will be priced at US$0.22, which is not necessarily cheap by any means. However, this appears to be a lot cheaper compared to what Japanese consumers are used to paying.
Whether or not Looop’s initiative will result in a booming cryptocurrency mining ecosystem in Japan remains to be seen. It is evident Japan aims to make an impact in the world of cryptocurrency, even though that is much easier said than done right now. Offering a proper electricity plan to customers is well worth exploring in this regard, assuming rates are even remotely competitive. It will be interesting to see how this and similar ventures play out in the long run.
Considering that various companies in Japan have recently announced Bitcoin mining ventures, this announcement comes at a rather opportune time. High electricity costs are a major bottleneck for cryptocurrency mining in Japan right now, although it will take much more competition for this country to be considered a powerhouse. Right now, the vast majority of worldwide mining operations are based in China, but that situation may come to change sooner or later, by the looks of things. An interesting future awaits Bitcoin; that much is certain.