Bitcoin as a new source of energy

Kajetan Maćkowiak
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Digiconomist estimated that the annual cost of Bitcoin production is 1,2 billion dollars. Moreover, yearly income from digging out Bitcoins is over 5,5 milliard USD.

Thus, in a straightforward calculation, there is a 4,3 milliard annual profit. The electricity used to accomplish one transaction is 217-kilowatt hours (kWh), even the machine is state-of-the-art and most efficient it cannot use less than 77 kWh. Hence, it means that this amount of energy would be enough to heat one household in the USA for a week or – as a Digiconomist counted – 7,33 houses for a day.

Russians have already put this idea into practice.

The name of the city is Irkutsk, and it is placed in the north of Russia, in Siberia. Its inhabitants owe this innovation to Ilya Frolov and Dmitry Tolmachyov. These local entrepreneurs have implemented and developed an underfloor heating system, which is working with the mining hardware. The heating comes from the process of digging cryptocurrencies. How it’s working? The machine utilizes the heat produced by cryptocurrency miners. What is more, it is entirely ecological, because it limits the carbon dioxide emissions. The hot air from the machine is used to warm a house, then chilled and released to the atmosphere. Analytics compared that one mine can generate as much CO2 as Boeing 747-400. So it is recycling, don’t you think it is smart?

Irkutsk is incredibly open for cryptomarket. As data says, more than 1,000 people from this city are mining cryptocurrency. Moreover, one café bistro accepts Bitcoin payments. Further, they intend to host a Bitcoin ATM in the town. Accordingly, Ilya Frolov and Dmitry Tolmachyov are planning to build 2 thousand crypto houses till 2020.

Because in Irkutsk energy costs are low (around one-fifth of the expenses in Moscow), this enterprise looks very rational. Using this energy in that kind of way protect the environment and at the same time expand the cryptocurrency market. Is it possible to implement this innovation around the world?

Regarding calculations, there are around 300 thousands of daily transactions around the world – it means over 2,2 mln households could be heated by using the cryptocurrency miners.

What we do not believe in, is that only in Irkutsk it is possible.

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