Mine Bitcoin While Heating Your Home – Heatbit Creates the First Bitcoin-Mining Home Appliances

Mine Bitcoin While Heating Your Home – Heatbit Creates the First Bitcoin-Mining Home Appliances

[Music] welcome back to the show I love meeting Bitcoin Founders and learning about developments in the space and joining me today is Alex Busara he is the co-founder of heat bit and I cannot wait to hear about this because I actually saw a flyer about this product when I went to Miami last year uh I didn’t need it at the time it was very hot in Miami but um but this is fascinating so you can mine Bitcoin at home while you heat it uh yeah I doesn’t take too much you take the device you plug it in press the button and you’re a minor okay so first before we get into this cuz this is fascinating and it’s turned on right now it’s mining Bitcoin um tell us about your background you’re from Russia yeah I’m I grew up in southern Russia I went to University in the UK since then I lived in quite a few countries in the Middle East last 10 years I actually lived in China and now I’m moving to uh to Southeast Asia wow and how did you get into Bitcoin um actually first time I remember reading something about Bitcoin was when I started working that was in 2008 I just graduated um and that was my first job and then the the financial crisis started and you know we all had to had to deal with that and I remember reading about Bitcoin I like hm this is interesting but then yeah the the job kind of took over was busy with that and I properly got into Bitcoin quite a bit later when uh back in 2020 actually called he it started back in 2020 um I was uh we were all under lockdown with the co uh it was getting boring uh I bought myself a toy which happened to be an an ant minor s9k uh it’s a minor just to play with um and I turned it on in in my bedroom first it got really loud then it got really hot and then I thought oh this could be a good heat if you solve the noise problem so I I have quite a bit of background with energy is as as my my first job was related to that and I thought well this this this could be this could be a great device and that’s that’s how heit started and that’s how I started getting more and more into Bitcoin system it’s crazy to think that people used to be able to just mine on their computers and then it moved to these very sophisticated application specific devices but now mining is moving into other genres that I did not expect like even a a product at home that can heat so I mean how how much Bitcoin can you actually mine with something like this at home cuz I I always thought bitcoin’s too expensive to mine especially if you’re you know living in a Suburban city in the United States it’s just it’s Out Of Reach because it’s too expensive due to the energy um to a large extent you’d be correct um it depends on how you actually mine in this case right so if you if you think of it as a miner and you think of the energy the electricity that you spend on mining uh you you’re going to have a residential power rate of about 15 cents per kilo hour uh in the US that’s that’s the the average and uh then it’s proh prohibitively expensive compared to the large miners um but if you heat with electricity then uh you heat with electricity anyway you spend that energy anyway instead of just turning that electricity into heat uh you could mine at the same time this way some people get confused with it but this way you don’t actually use any extra energy for mining so in that sense the the cost of mining for you if you use it with heating is uh the cost of buying the device really so if you thought of uh buying a Dyson let’s say for something like 800 bucks and instead bought this then the cost of mining for you is zero because it costs the same uses the same amount of energy gives you the same amount of heat but you get the set sometime okay so I I thought that maybe if you plug in a device I mean whether it’s an S9 or something like this that it would just surge your energy bill but that’s not the case whatever electricity that you use M um it turns into to heat okay whether you do it with um a a usual heater whether you use it with a minor doesn’t really matter so as long as you use you could use an S9 in the same way as long as you use it to get just enough heat that you need just to feel comfortable then you you’d pay that bill anyway coin stories is brought to you by bit Deere where the power of Bitcoin mining is at your fingertips as a publicly traded leader bit deer’s Global reach and scale means they’re everywhere you need them to be ensuring you’re part of the thriving Bitcoin economy bit deer’s not not just mining they are industry pioneers and biter stands alone as the only vertically integrated technology focused Bitcoin mining company they’re not just deploying but developing the latest tech to make Bitcoin mining more efficient and effective now they’re leveraging years of expertise in Data Center and Cloud management into high performance Computing through a recently announced partnership with Nvidia join bit deer in reshaping the world of Bitcoin mining learn more at bit dear.com and explore how they are pioneering the future today well I’ve been in some mining facilities they are very loud and I mean the reason that it generates this heat right is the computers are just guessing guessing guessing these massive numbers and now that I understand Bitcoin mining it’s so much simpler than I originally thought right it’s it’s you’re just guessing numbers it’s like a lottery but yours is very quiet it sounds like you can barely hear it how did you guys do that um well it takes a lot of blood and sweat and tears I think that’s what we have a lot of uh inside of of our engineering team um but generally it’s uh it’s having a a good uh minor inside for this device we actually had to build uh our own Miner uh so that it would fit well uh then it’s using powerful enough fan um and uh not overclocking it too much so you don’t have too much of the airflow and then it’s quiet right now it’s actually hashing at 10 Tash so that would be giving you uh about half of the power bill it would be covering starting from end of this week after the Hing right now it would actually cover 100% of your power bill now do you like um direct this to a mining pool y yeah right now it goes to uh nice has mining pool okay uh but we plan to add the the users’s own choice of the mining pool so us could just pick which mining pool they like and and that would go well I you know a lot of people are concerned about centralization risks there are very few mining pools there are a lot of um companies that have grown very large within the Bitcoin mining space um can you talk about that I mean does this help sort of mitigate something like that because every individual they can run a node and they can also use a heater to mine Bitcoin sure I I think I think there’s actually a lot of issues that we see with um the centralization of mining uh mining pools is one thing and this this certain Solution that’s coming up with it with uh there are Solo mining pools now the there are mining pools that enable a lot more decentralization ocean pool recently came out it’s been quite famous right so I think this is something that will be solved by people who make the the mining pools uh I think a bigger risk is actually coming with um the large miners um which are out there right now there’s um if if you take just the the 10 of the large miners um they control uh a very very big chunk of the whole mining today and that’s a problem that’s a problem in many ways uh it’s a problem because it’s just centralizing the mining uh and the the whole idea and the value of the system is in it being decentralized and they kind of pushing it the other way in fact as the competition intensifies with the Hing Etc it’s probably going to have to get even more centralized and it’s going to be even more of an issue um then in terms of any kind of government action and censorship Etc it it can become even more of an issue if the if the mining is centralized right we’ve all seen what happen in in China in 2021 when the mining was banned the um uh the uh hash rate went down by something like 40% within a matter of months and that’s that’s the security of the system it went down within a month with the decision of one fairly big government body but still it’s just it’s just one centralized body um and then what I also see and that’s what people don’t talk about much is uh the large miners very often they’re very much Leverage right so what they they they’re leveraged against the the price of Bitcoin and the performance with with within the um uh mining that they do so if at any point the price of Bitcoin goes down what we might see is um a lot of bankruptcies of these company and what happens then well the hash rate goes down again and that could happen very very quickly we’ve all seen what happened with companies like corenic in in 22 right when it was a series of bankruptcies so you get you get all of these issues that people frankly I think they they don’t talk about as much and then on top of that is the energy consumption right the the one of the biggest um challenges that the society as a whole has put to to the Bitcoin is the energy consumption of the mining now the response of the large mining companies so far has been that well x% I’ve seen different numbers from 50% 80% whatever large percent of the of the mining is is actually renewable and therefore it’s okay um frankly that argument has actually flawed um because if that energy didn’t go into mining it would go to the grid and if it if it went to the grid it would push out any of the dirtier um uh Power Generation coal mining Etc so this argument doesn’t really work very well the the only real way to make mining a lot Greener is by combining it with other uses like heating it could be space heating water heating there’s all sorts of industrial heating applications and then you have some um other attempts with things like stranded gas where you have like untapped energy sources that you turn into ke and those could work as well but the really big ones is when you combine it with um with other things like we do there there’s other companies H how do you Market this type of product to a large audience that doesn’t even understand Bitcoin oh that’s actually one of the beauties of of these products um so to use this you don’t need to understand Bitcoin you just need a heater uh you need a heater there’s about three billion people in the world um who who have heaters and this is one of the big parts of our vision that why why can’t everyone who has a heer why can’t they be a Bitcoin miner that would make the network very centralized it would make the network not use any extra energy than the society uses uses anyway and frankly once you’re a minor even if at first you don’t understand Bitcoin but then you kind of get a benefit of it at some point you start learning and you know maybe there’s a bit of orange feeling happening along the way as well how did you come up with the design cuz when I look at it I feel like it looks like like the base of a rocket ship and it just have have like the uh I I think fortunately for us it wasn’t me coming up with a design CU my my design sense is terrible um and it was one of our industrial designers who came up with the concept first um this guy has won quite a few Awards before like a red dot design award um in in in Germany and um he got some inspiration he uh he drew it at first it was actually meant to be a lot smaller it was meant to be about this tall and why isn’t it uh but then the engineering team came in and say well we do have some restrictions and the fan needs to be this big and the miner needs to be this big and kind of group uh so at first we we call it hbit mini uh and at first it seemed like a good idea because it’s it’s actually our second product our first product was about this tall oh wow so we thought okay now it’s much it was supposed to be much smaller it’s going to be hit mini and then we’re like well it’s not really a mean is it it’s it’s just crazy to think what the future will look like with maybe different appliances and things in our home potentially mining Bitcoin like I can’t even imagine yes yes it’s it’s in one way uh I mean it may be a little bit of a stretch but in one way this is a bit of a revolution in home appliances think of it this way at first you got you started getting home appliances that were powered by electric power right you would have the fridge you would have the TV you would have a hair dryer whatnot um then a big step in those appliances was having a remote control right it it would in in 50s I think or 60s Right started coming out and that was quite a bit of a change in terms of how people actually use the the home appliances then the next big thing happened already after 2000 when they started calling them smart and smart me meant that it was somehow connected to some information system like the internet Wi-Fi and then it could be controlled completely remotely whatnot now your home appliances can actually give you a bit of income it’s crazy I think it’s bigger than the remotes I think I have an idea I think I know how we’re going to get the women into Bitcoin have you heard of the Dyson air wrap these things every girl wants one it’s kind of a decision like do you spend your money on on bitcoin the Satoshi or do you buy the Dyson what if your Dyson mind Bitcoin could you do a haird dryer uh I don’t think Dyson has a model that would mine Bitcoin yet but I I I I think there’s an idea here it’s time for a quick break to hear these messages from my partners who make this podcast possible next up Bitcoin 2024 the world’s largest Bitcoin conference is coming to Nashville this July join us for three Amazing Days of Keynotes panels networking events and my women of Bitcoin brunch head to B.T ccon and use the code hodle for 10% off next up speed Bitcoin lightning wallet one of the fastest growing Bitcoin wallets out there speed is a secure lowcost way to send and receive Bitcoin instantly download speed using the QR code on the screen or the link in my show notes next up coin kite coin kite makes everything you need to safely self- custody your Bitcoin including the cold Card Wallet head to their site in my show notes and get a 5% discount with promo code coin stories and finally the why of Bitcoin is easy to grasp but the how can be so confusing the Bitcoin way is a professional Bitcoin it and security team offering personalized one-on-one support that guides you through Cold Storage setting up nodes inheritance planning privacy best practices and more set up your free 30-minute consultation today all right back to the show what are the chances that one of these gets an entire Bitcoin block um it would be like winning a bit of a lottery uh just like any solo but it’s literally possible yeah just the chances are really small yeah uh it generates right now it generates about um a dollar a day uh so if we you know count in dollar terms uh a block after Hing is going to be what about $200,000 so it’s within a particular day it’s about one to two 200,000 uh chances within a particular month it’s 1 to 10,000 is there like an average um that people are earning per month using one of these yeah that’s that’s why I said right now it would be uh uh about a dollar a day obviously with the fluctuation the price of Bitcoin it vary um but the at some point it becomes not very important because if you don’t think of it as a miner but think of it as a heater and yeah we Market it as a heater it is a heater then whatever you get on top is just extra discount yeah no it’s really interesting okay before we start to wrap up what is it like been what has it been like being a Founder in the space like is it is it easy is it more challenging than maybe other industries that you’re familiar with um there are pros and cons uh I think uh on one it I think it’s all about the community um you get a lot of very dedicated people uh who support you we had people buying and paying the full price for the devices way before we even had the device um and that’s the there’s an incredible amount of trust that people put to us um and that was super important for us that’s that’s how we actually started to really push this business we saw that trust we we saw that you know people actually want what we’re building at the same time if you don’t deliver let’s say you don’t deliver on time and we had like any hardware business we had quite few delays um uh people can get pretty I would wouldn’t say aggressive um uh but pretty challenging uh with with what you do and if you start losing the trust it kind of gets difficult I think uh we had a lot of people like we if we didn’t deliver on time we had a lot of people would say oh heid is a scam and like but we’ve been working day and night while you’re calling us a scam but now as the device is in people’s hands I I think it’s it’s all a very uh shiny future what does it mean to you to work in this space and help the Bitcoin Network grow and help provide it to more people um it’s it’s exciting it’s um it’s exciting for me in in two ways one is it helps to build a very new Financial system that is very empowering for the society overall um and two um we we’re not only building it for the people who already within the E system uh like we said right there’s there’s a few billion people who use an electric heater and we’re essentially enabling them to uh join maybe even join the their ecosystem before even realizing that they did so how much is a heat bit and where can people find you uh it’s uh the people can find me on uh Twitter if they go to heat bit.com uh there’s there’s a Twitter right there um the they can buy the device there as well it’s $800 right now uh we’re going to increase the prices a little bit before before the next season though um and uh yeah can can reach me through through Twitter I think that would be be useful well I could have really used this in the winter that I had in St Louis so Alex thank you so much for joining me and sharing your product I hope to see you again soon thank you thank you thank you so much for checking out this episode of coin store if you’re listening on the fountain app you can show your support and share your thoughts by sending a boost last month’s top episode was with Peter Schiff at Jays boosted 10,000 STS and said we’re sailing from Panama to Tahiti and thanks to the digital world I’m able to listen to your podcast and reply and boost it it’s amazing Peter talks about digital photos but doesn’t get digital money oh I agree with you at JS I love reading and replying to your Boost so download fountain on iOS or Android today and make sure you’re subscribed to coin stories this show is for entertainment and educational purposes only nothing should constitute as official investment advice and you should always do your own research my inbox is open if you want to share feedback or guest suggestions just reach out at Nataly talking bitcoin.com I’ll see you next time

In this episode with Alex Busarov, founder of Heatbit, we discuss:
– Mining Bitcoin while heating your home with Heatbit: https://heatbit.com/?ref=NATALIEBRUNELL
– Will more at-home appliances become miners?
– Why should people mine Bitcoin at their home or office?
– Mining pools and centralization risks
– How much does it cost to mine and what are the chances of winning a Bitcoin block?
– Building a Bitcoin company – the pros and challenges
—-
Bio:
Alex Busarov is the Founder and CEO of Heatbit, the company behind the world’s first Bitcoin-mining home appliances. Think Dyson, but with Bitcoin rewards. Before starting Heatbit, Alex was a consultant at McKinsey, where he worked with major energy companies. His work shaped some of the largest wind and solar energy projects worldwide. The Russian native has spent a lot of time in China, and earned his Bachelor’s Degree in Philosophy and Economics from The London School of Economics and Political Science.

Follow Alex on X at https://x.com/heatbit_com

⚡ Coin Stories is powered by Bitdeer Technologies Group (NASDAQ: BTDR), a publicly-traded leader in Bitcoin mining that stands alone as the only vertically-integrated, technology-focused Bitcoin mining company. Learn more at https://bit.ly/bitdeercoinstories.
—
Natalie’s Promotional Links:
⚡ Mine Bitcoin and Heat Your Home with Heatbit: https://heatbit.com/?ref=NATALIEBRUNELL 
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🗒️ IN THIS EPISODE:
00:00 Growing up in Russia, living in China
00:55 How did Alex get into Bitcoin?
2:10 How does Heatbit work?
3:46 Does Heatbit cause an energy spike?
4:15 Bitdeer Technologies Group
5:00 How is Heatbit so quiet?
6:08 Connecting to mining pool
6:24 Centralization risks
10:24 Marketing Heatbit to large audience
11:14 Designing Heatbit
13:47 Bitcoin 2024
14:09 Speed Bitcoin Lightning Wallet
14:22 Coinkite Coldcard Wallet
14:35 The Bitcoin Way
14:56 Can Heatbit mine a full Bitcoin block?
15:34 How much can I earn with Heatbit?
16:05 Being a founder in Bitcoin space
17:31 Helping Bitcoin network grow
18:55 Fountain App

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Natalie’s website https://www.talkingbitcoin.com/
Heatbit https://www.heatbit.com/

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Producer: Aron Bender https://www.linkedin.com/in/aron-bender/

DISCLAIMER Coin Stories is for entertainment purposes only and does not give financial advice. #bitcoin #crypto #money