With cryptocurrency mining becoming an established industry, entrepreneurs find new ways to incorporate mining into everyday life by utilizing the excess heat produced by the equipment.
One of them is Hotmine, which is targeting Irkutsk as an inflection zone for their mining heaters. Eastern Siberia is famously cold in the winter, and where subzero temperatures are completely normal.
Hotmine CEO Oles Slobodenyuk aims to sell up to 200,000 of its devices to Irkutsk residents, with the end goal reaching even higher:
“Our goal is to reach the point where 80 percent of all mining is done with the smart use of the hot air it’s producing, at the same time protecting the bitcoin network. We believe mining should become decentralized again, with a full node in every home” Slobodenyuk said.
According to Slobodenyuk, the Hotmine miner can reach a hashrate speed of up to 8 tera hashes per second (TH/s). Mining Bitcoin, the Hotmine could translate into $55 per month revenues while providing heat for 10 square meters.
The concept and the idea isn’t anything new, as many have contemplated to make use of the emanating heat from cryptocurrency miners. What Hotmine is doing differently is targeting a region where this type of heater would quickly catch on.
With prices for electricity of $0.02 per kWh in Irkutsk, one heater would consumer around $10 worth of power per month. This way the heater subsidizes heating costs and even provides a small income in Bitcoin.
The company expects the heater to be priced at $1,050 and a test batch of 60 is already planned for release in November. By the end of the year, Hotmine wants to sell 100 to 200 heaters.
Asked if he believes people would readily learn how to deal with Bitcoin wallets and exchanges to spend their radiators’ earnings, Slobodenyuk said that at first, they won’t have to.
Hotmine can partner with crypto service providers, and all consumers would have to do is give a bank account number before harvesting their income converted to fiat.
Another proponent for Bitcoin-powered heating is Ilya Frolov. His startup, Imagine8, builds heating systems with Bitmain miners and mineral oil, which heat the floor. Imagine8 wants to showcase their product by integrating the system into rental guest homes.
Considering that a house of 100 square meters consumes around 10 kilowatts via an electric boiler, electricity bills in Irkutsk during winter can rise up to several hundred dollars per month. This makes Bitcoin-powered heaters very attractive, as six or eight specializing mining chips can heat a home and earn owners some BTC.
Moreover, this represents efficiency at the highest level, Frolov argued, when the machines can have a positive environmental effect, “instead of having the heat from ASICs wasted in the air and people heating their houses with coal.”