Re:Bitcoin's Use in Commerce Keeps Falling
by lalaland1125 on Sunday August 26, 2018 @03:20PM
(#17847383)
This logic is flawed because it doesn't consider the fact that we have more efficient heaters than electric space heaters. In particular, the two main alternatives are gas (more efficient because you skip inefficient fuel -> electricity steps) and heat pumps (more efficient because you draw in heat from outside). Compared to these alternatives, Bitcoin miners make very, very inefficient heaters.
> Compared to these alternatives, Bitcoin miners make very, very inefficient heaters
...which is why I specifically talked about people "whose homes used electrical resistance heating". Many areas do not have gas available by pipe, and having it delivered by truck in liquid form is often expensive. People living in rental units may not be allowed to install a heat pump, and heat pumps have a high up front cost that keeps out many people who aren't blocked by any other restrictions.
Also, even people with other, more efficient, heat sources might have situations where electrical resistance heat makes sense. For example, it may save money at night to turn down a whole house heat pump to a level that would be uncomfortably cold, and use an electrical space heater to just keep your bedroom warmer.
There is one group of miners for whom electricity costs and Bitcoin price don't really matter much: home miners in cold regions whose homes used electrical resistance heating. Almost all of the energy consumed by a computer ends up as heat released directly into the room. A computer is, for most practical purposes, an electrical space heater that is as efficient as a "real" space heater [1]. It's just more complicated and the power consumption (and hence heat output) tends to vary a lot depending on what computation it is doing.
I wonder if this will result in mining eventually becoming mostly a home activity again, as it was when Bitcoin was starting out?
[1] https://www.pugetsystems.com/labs/articles/Gaming-PC-vs-Spac...