Americans are using Bitcoin Mining to heat their homes for winter.

Written by: Kevin Williams, CNBC

Compiled by: AididiaoJP, Foresight News

Abstract

Entrepreneurs are increasingly engaging in practices aimed at converting the heat generated during the cryptocurrency mining process into valuable products.

Analysis by digital asset brokerage K33 shows that the waste heat generated by Bitcoin mining each year is sufficient to meet the heating needs of Finland as a whole, but most of this heat is discharged directly into the atmosphere.

This situation has given rise to new products—such as a space heater that sells for $900 and also functions as a Bitcoin mining machine. However, critics 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 family budgets. Although 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 predictions from pioneers in the cryptocurrency heating industry, this new heating method is expected to become popular in thousands of homes 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 waste gas. According to data from K33, Bitcoin mining generates approximately 100 terawatt-hours (TWh) of waste heat each year, enough to meet the heating needs of the entire country of Finland. In this high-energy-consuming 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 miners to warm entire houses.

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

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

Ford did some calculations: “The heating costs are comparable to traditional methods, but the additional benefit is the simultaneous acquisition of Bitcoin earnings.”

Even using old mining machines can meet the demand. Individual miners can join mining pools to share computing power and obtain stable profits proportionally, thus 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 clever because almost all computing energy consumption eventually 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 shows its potential.

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

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

Questioning Voices: Why Cryptocurrency Heating Struggles to Make an Impact on Climate

There are also many opponents.

Derrick 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, even though there are flaws in industrial applications as well.

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

“Ten years ago, home Bitcoin mining might have yielded some returns, but times have changed,” Moore said.

He analyzed the market products: “The so-called Bitcoin heating devices are essentially ordinary electric heaters, and it's hardly efficient to use residential electricity rates for heating.” He emphasized the core contradiction: “Although the heat generated from Bitcoin mining is considerable, the heat ultimately consumed for home use still comes from the user's own electricity.”

Moore also calculated an economic account: while computers do generate heat during continuous operation, the probability of successfully mining is negligible.

“This is essentially a false proposition, exploiting the public's perception of the residual heat of Bitcoin and mining profits to create the illusion that individuals can also profit from it,” he concluded.

Dawn Breaks: The Potential of Distributed Mining Machines

However, experts point out that with the popularization of plug-and-play independent mining machines, this model may demonstrate feasibility in more scenarios. At 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 Institute at Texas Christian University, explained: “The key lies in the utilization of waste heat capture, whether for home heating, hot water preparation, or even swimming pool heating, all of 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. I am working hand in hand with industry partners to jointly build a technological system and business application model.”

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

“Although challenges such as efficiency optimization, multi-energy complementarity, and policy regulation still need to be addressed, Morris predicts: 'With the evolution of technology, cryptocurrency heating is not just a novel concept, but also foreshadows a future scenario of accelerated integration between the digital world and physical energy systems.'”

Practice leads to true knowledge: The heating experiment in Idaho

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

Many local shops are currently testing the Softwarm mining machine for mining heating. The TC car wash and truck wash shop originally spent $25 daily to heat the car wash area to melt snow and boil water. The owner reported: “Traditional heaters purely consume energy, but now the profits generated by the Bitcoin mining machine exceed the operating costs.” A certain industrial concrete company even uses the residual heat from the mining machine to heat a 2500-gallon water tank, saving thousands of dollars each month.

Peterson has been using Bitcoin mining machines for heating 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 that people buy will come with data interfaces, and Bitcoin will become a common heat source.”