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As colder weather sets in, most Americans are lighting their fireplaces and turning on their electric heaters to stay warm. But there are a handful who have opted for a new, cost-effective way to heat their homes: bitcoin mining rigs.
The computing power required to mine cryptocurrency produces a lot of heat. In total, the industry generates around 100 TWh of heat annually, which is enough to heat a country the size of Finland, according to digital asset brokerage firm K33.
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This potential energy waste, in an industry that’s already under scrutiny for the level of energy it uses, has led a number of entrepreneurs to create products that repurpose that heat. HeatBit’s Trio, a space heater and air purifier with a built-in mining rig, was reviewed by the New York Times earlier this year, which called it “pretty good” but said that it wasn’t going to pay for itself.
“The concept of using crypto mining or GPU compute to heat homes is clever in theory because almost all the energy consumed by computation is released as heat,” Andrew Sobko, founder of computer power marketplace Argentium AI, told CNBC.
Sobko says that he thinks crypto mining heat makes the most sense in larger-scale settings, like data centers or multi-unit residential buildings.
“We’re working with partners who are already redirecting compute heat into building heating systems and even agricultural greenhouse warming. That’s where the economics and environmental benefits make real sense,” Sobko told CNBC.
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“Instead of trying to move the heat physically, you move the computer closer to where that heat provides value,” he added.
Others disagree, saying that crypto mining rigs can be used effectively to heat single-family homes and other small spaces.
“I’ve seen bitcoin rigs running quietly in attics, with the heat they generate rerouted through the home’s ventilation system to offset heating costs,” Jill Ford, CEO of sustainable bitcoin mining company Bitford Digital, told CNBC. “It’s a clever use of what would otherwise be wasted energy.”
“Using the heat is another example of how crypto miners can be energy allies if you apply some creativity to their potential,” she continued. “Same price as heating the house, but the perk is that you are mining bitcoin.”
There are, of course, plenty of skeptics who don’t believe bitcoin mining rigs are an effective, or even plausible, way to heat a space.
University of Rochester finance professor Derek Mohr says that home computers aren’t specialized or powerful enough to effectively mine bitcoin, which undermines the entire proposition.
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“While bitcoin mining at home — and in networks of home computers — was a thing that had small success 10 years ago, it no longer is,” Mohr told CNBC. “In my opinion, this is not a real opportunity that will work. Instead, it is taking advantage of things people have heard of — excess heat from bitcoin mining and profits from mining — and is giving false hope that there is a way for an individual to benefit from this.”
“Yes, bitcoin mining generates a lot of heat, but the only way to get that to your house is to use your own electricity,” he added.
People like Cade Peterson have become real-world test cases for the functionality of crypto mining rig heating. In Challis, Idaho, Peterson’s company, Softwarm, is repurposing Bitcoin heat to warm several of the town’s shops and businesses.
“Traditional heaters would consume energy with no returns. They installed bitcoin miners, and it produces more money in bitcoin than it costs to run,” Peterson told CNBC.
So far, a car wash and an industrial concrete plant have both been able to offset their heating costs with Softwarm rigs. Peterson, who told CNBC he’s been heating his own home with crypto heat for the last two years, says he expects to see more success stories like this in the future.
“You will go to Home Depot in a few years and buy a water heater with a data port on it, and your water will be heated with bitcoin,” he said.
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This article Struggling With High Electricity Bills? Try Heating Your House With Bitcoin – These Americans Are Doing It originally appeared on Benzinga.com
