Utilization of Waste Heat in Bitcoin Mining: From Concept to Practice in Idaho

Author: Kevin Williams, CNBC

Compiled by: AididiaoJP, Foresight News

Original Title: Americans are using Bitcoin mining to heat their homes for the winter

Abstract

• Entrepreneurs are actively engaged in practice, trying to convert the heat generated during the cryptocurrency mining process into valuable products.
• Analysis by the digital asset brokerage K33 shows that the residual heat generated by Bitcoin mining each year is sufficient to meet the heating needs of the entire country of Finland, but most of this heat is directly released into the atmosphere.
• This situation has given rise to new products – such as space heaters priced at $900 that also function as Bitcoin mining machines. However, skeptics point out that this emerging cryptocurrency heating market is inefficient in providing warmth and controlling energy costs.

As a cold wave sweeps across the United States, electricity expenses have become an important consideration in household budgets. While most Americans still rely on traditional heating methods (home heating oil, natural gas, and electric heaters), in some households, cryptocurrency mining is becoming a source of heat. According to the predictions of pioneers in the cryptocurrency heating industry, this new heating method will become widespread in thousands of households in the future.

The basic principle is that cryptocurrency mining generates a large amount of heat, most of which is eventually released in the form of exhaust. According to data from K33, Bitcoin mining generates about 100 terawatt-hours (TWh) of waste heat annually, which is enough to meet the heating needs of Finland as a whole. In this energy-intensive industry, this phenomenon of energy waste is driving entrepreneurs to explore new ways to utilize waste heat, especially in winter for use in homes, offices, and other places.

During this year's cold wave, The New York Times tested the HeatTrio product, which is both a $900 space heater and a Bitcoin miner. Some users have also used the heat generated by home cryptocurrency mining machines to heat their entire homes.

The CEO of Dallas-based sustainable Bitcoin mining company Bitford Digital, Jill Fort, stated: “I have seen Bitcoin mining machines running quietly in attics, using home ventilation systems to channel heat indoors to offset heating costs. This waste heat utilization scheme is very clever.” She emphasized, “As long as you use your creativity, utilizing the residual heat from mining machines is a typical example of cryptocurrency miners becoming energy partners.”

Although this solution may not directly save on electricity costs, the specific economic benefits are influenced by multiple factors such as local electricity prices and the computing power of mining machines, it may cover part of the heating costs through mining revenue.

Ford calculated a sum: “The heating costs are comparable to traditional methods, but the additional gain is the simultaneous acquisition of Bitcoin profits.”

Even using old mining machines can meet the demand. Individual miners can join mining pools to share computing power and receive stable returns in proportion, thereby changing the cost-benefit equation.

The founder of Argentum AI, Andrew Sobko, analyzes, “The theory of using crypto mining or GPU computing for residential heating is quite clever, as almost all computing energy consumption ultimately converts into heat.” However, he adds that this model is more feasible in large-scale scenarios, especially in high-density buildings like data centers in cold regions, where industrial-grade waste heat recovery truly demonstrates its potential.

The key to implementation lies in spatial matching; thermal energy cannot be delivered through transportation means, and computing devices must be deployed in locations that require heat sources, ranging from industrial parks to residential areas, all of which are potential application scenarios.

Sobuko revealed: “We are working with partners to integrate computing heat into building heating systems and even agricultural greenhouses. Only in these scenarios can we truly achieve a win-win situation for economic and environmental benefits.” He vividly compared: “It's not about transporting heat, but about making computation happen where heat energy is needed.”

Questioning Voices: Why Cryptocurrency Heating Struggles to Become a Trend

There are also many opponents.

Derek Moore, a clinical associate professor at the Simon Business School of the University of Rochester, believes that cryptocurrency is not the future of home heating, and even industrial applications have flaws.

According to his analysis, Bitcoin mining has become highly specialized, and it is almost impossible for personal computers or even home computer networks to successfully mine blocks, as professional mining farms use specialized chips that far exceed the computational power of home devices.

“Ten years ago, home Bitcoin mining might have yielded some rewards, but now times have changed,” Mohr bluntly stated.

He analyzed the products on the market: “The so-called Bitcoin heating devices are essentially ordinary electric heaters, and using residential electricity rates for heating can't be considered efficient at all.” He emphasized the core contradiction: “Although the heat generated by Bitcoin mining is considerable, to use this heat for households, the energy ultimately consumed still comes from the users' own electricity.”

Mo Er also did some economic calculations: while computers do generate heat when running continuously, the probability of successfully mining is extremely low.

“This is essentially a false proposition that creates the illusion that individuals can profit from it by leveraging the public's understanding of the residual heat of Bitcoin and mining rewards,” he concluded.

Dawn is Breaking: The Potential of Distributed Mining Machines

However, experts point out that as plug-and-play independent mining machines become more widespread, this model may demonstrate feasibility in more scenarios. At the very least, based on the characteristic that “mining inevitably generates heat”, its dual-track benefits are worth further study.

Nikki Morris, Executive Director of the Ralph L. Davis Energy Research Institute at Texas Christian University, explained: “The key lies in the utilization of waste heat capture, whether it is for home heating, hot water preparation, or even swimming pool heating, which can enhance energy utilization efficiency.”

She pointed out that cryptocurrency heating is still in its infancy, and there are blind spots in public awareness. “This is exactly where the research value lies. My school is working hand in hand with industry partners to jointly build a technological system and business application model.”

Morris particularly emphasized the unique advantages of cryptocurrencies: “Mining produces tradable digital assets, which is equivalent to creating new revenue streams from electricity consumption.” She likened it to electric vehicle charging stations: “Imagine a mining device in an apartment building that simultaneously produces digital currency and usable heat, which would open new windows for distributed energy innovation.”

Although there are still challenges to overcome in efficiency optimization, multi-energy complementarity, and policy regulation, Morris predicts: “With technological evolution, cryptocurrency heating is not just a novel concept, but also foreshadows the future scenario of the accelerated integration of the digital world and physical energy systems.”

Practice brings true knowledge: Heating experiment in Idaho

The future of cryptocurrency heating is quietly taking shape in Challis, Idaho. Cade Peterson's company Softwarm is using Bitcoin's waste heat to fend off the harsh winter.

Many local shops are currently trying out Softwarm mining machines for mining heating. The TC car truck RV washing shop originally spent 25 dollars a day to heat the car wash area for melting snow and boiling water. The owner reported: “Traditional heaters consume energy purely, but now the profits generated by Bitcoin mining machines exceed the operating costs.” An industrial concrete company even uses the waste heat from mining machines to heat a 2500-gallon water tank, saving thousands of dollars a month.

Peterson has been using Bitcoin mining machines to heat his home for two and a half years, and he firmly believes that thermal energy will drive the future: “In the near future, water heaters will come equipped with data interfaces, and Bitcoin will become a daily source of heat.”