Over the past two years, there has been much discussion about the energy consumed by mining cryptocurrencies. However, more recently, mining companies have used environmentally friendly methods and some of them channel excess heat to achieve other goals. Alarming and frightening reports on the energy consumption of Bitcoin mines make three fundamental mistakes. First, they do not understand how Bitcoin works, secondly, they do not understand what the massive adoption would look like, and third, they do not understand the problem that Bitcoin is supposed to solve. Regardless of your opinion on the danger of global warming, Bitcoin does not use as much energy as it is claimed and will become much more efficient as it grows.
Bitcoin extraction is a market-based process that exploits underutilized energy sources. When Bitcoin’s critics focus on the raw energy consumption of Bitcoin mining, they forget the whole problem: Cryptocurrency production is a competitive market process. Since the cost of operating Bitcoin comes mainly from electricity consumption, Bitcoin’s mining operations will always be concentrated in places where energy is cheap or surplus. The industrial-scale mining facilities are located in very remote areas with hydroelectric, nuclear, geothermal or undeveloped and undeveloped industrial regions with excess production. Cryptocurrency mining is a means of exploiting underutilized energy resources for valuable purposes, namely the maintenance of a monetary system. No other industry can quickly move into an industrial ghost town and create value as Bitcoin mining companies do.
Cannabis grow rooms are another emerging market in North America that could benefit from the byproduct of heat. In the past, these two industries were considered “dubious”: marijuana was illegal until recently and crypto-currencies such as Bitcoin were associated with black market transactions at sites such as Silk Road and Alpha Bay. Both are exploding in the mainstream right now, and this is the perfect time to get into what could be two of the biggest industries of the near future. If you use HID lighting, you need powerful fans to dissipate heat outside. It wastes huge amounts of electricity, which can be expensive. On the other hand, if you use LED lamps, you often encounter the opposite problem and you have to use a heater to maintain the right temperature, which also costs a lot of extra electricity. The cultivation of cannabis and mining crypto-currencies cost you a lot of extra money in electricity costs, either to heat or cool your growing room, and to cool your own mining platform. This additional electricity consumption can completely cancel your mining profits if you have a small business. Instead of wasting money on electricity, put your hobbies in the service of one another and you will save a lot of money each month.
The same can be done with agriculture more broadly, the residual heat produced by bitcoin extraction has been used successfully to feed a tomato greenhouse in the Czech Republic. On March 10, Kamil Brejcha, co-founder of the Nakamoto X exchange, revealed a photo showing large clusters of tomatoes from the excess heat of cryptocurrency miners. Brejcha explains that “cryptomates” have become a reality after developing a system that helps to blow excess heat into the greenhouse.
By locating business computers in buildings where heat is needed rather than data centers that need to get rid of carbon footprint calculations up to 75%.