Can You Mine Bitcoin Using Wind Power?
As someone who loves diving into the exciting world of innovative technologies, I’m thrilled to explore the fascinating intersection where wind energy meets Bitcoin mining. Hailing from the Netherlands, where energy prices are sky-high, finding sustainable and cost-effective solutions is like searching for treasure.
As a video editor and writer for the VoskCoin YouTube channel, I have the privilege of covering a wide array of cryptocurrency-related topics, with a strong emphasis on mining. Our ultimate goal is to produce our own electricity on the Crypto Mining Farm, and while solar energy has been a primary focus, my Dutch roots have piqued my curiosity about the feasibility of wind energy for Bitcoin mining. Given that the Netherlands is renowned for its windy climate, exploring the potential of wind power in this context is an exciting endeavor. Join me on this journey as we delve into the world of wind energy and its implications for cryptocurrency mining.
In this article, we’ll embark on an adventure to uncover the unique opportunity of using wind power to fuel our Bitcoin mining endeavors. Forget about waiting 12 to 20 years for returns like with traditional wind turbines — with Bitcoin mining, we’re talking about a fast track to ROI! So buckle up and join me on this journey as we discover how combining renewable energy with cutting-edge tech can lead to both financial gains and environmental wins. But be advised, read until the end because there is a catch.
Electricity
Bitcoin mining has been dominated by large mining companies with access to lower electricity rates. However, harnessing the power of wind or solar energy to generate free electricity for mining is a potential solution. Wind energy, in particular, has been highlighted as a promising and efficient way to power Bitcoin mining. According to a study, Bitcoin mining with wind turbines is reported to be two times more efficient than mining with solar energy, and wind energy installations could earn millions of dollars from mining during periods of excess electricity. Wind turbines are also said to require minimal maintenance and have a long service life, making wind power a viable option for Bitcoin mining. While both wind and solar energy have their advantages, the potential of wind energy for powering Bitcoin mining is being increasingly recognized.
Accessibility
Bitcoin mining is becoming more accessible than traditional investments, as it only requires mining hardware, electricity, and internet access. This accessibility has made it an attractive investment avenue for many, particularly in regions with limited access to traditional banking. The decentralized nature of Bitcoin mining also empowers individuals to have control over their funds, bringing a new level of autonomy to personal finance.
The accessibility of Bitcoin mining has been further enhanced by the advent of global internet services like Starlink, enabling individuals to engage in mining from virtually anywhere in the world.
Additionally, the use of renewable energy sources such as solar and wind power has the potential to make Bitcoin mining more sustainable and profitable. Studies have shown that solar and wind energy installations could earn hundreds of millions of dollars by mining Bitcoin during periods of excess electricity, potentially supporting renewable energy development and mitigating the environmental impact of cryptocurrency mining.
Overall, the accessibility of Bitcoin mining, coupled with the potential for using renewable energy sources, has the potential to reshape the landscape of cryptocurrency mining and make it more sustainable and widely available.
If you have the capability to generate electricity, you can engage in Bitcoin mining. Various methods exist for generating electricity, in this article, we will focus on harnessing wind power for this purpose.
How?
How do we get started? Well, it depends on your budget and commitment. Wind turbines are available in various sizes, so let’s categorize them into three: BIG Wind Turbine, MEDIUM Wind Turbine, and SMALL Wind Turbine. While there are even larger offshore turbines and smaller ones with limited energy output, for simplicity, we’ll focus on these three sizes.
Mining Hardware
In the past, Bitcoin mining could be done with just your computer by downloading a wallet and starting the mining process. However, Bitcoin mining has evolved significantly over the years and has become more profitable and industrialized. Nowadays, it’s done using specialized mining hardware known as Application-Specific Integrated Circuit Miners (ASICs). These machines are designed specifically for mining Bitcoin and nothing else. You can purchase ASIC miners from the manufacturer or through third-party resellers like AsicMarketplace or CoinMiningCentral.
Bitmain stands as the foremost and highly successful producer of ASICs in the cryptocurrency mining industry. Among their latest innovations is the Antminer S21, designed specifically for Bitcoin mining. The Bitmain Antminer series has solidified its position as a cornerstone of Bitcoin mining since the introduction of the legendary Bitmain S9.
While there are other manufacturers like MicroBT (Whatsminer) and Canaan, for the sake of simplicity, we will focus on the Bitmain S21 to build our fictional Bitcoin Wind Mining farm.
Currently, the S21 is earning $16.65 a day at a Bitcoin price of $47,987
(12 Feb 2024).
Big Wind Turbine
The huge turbines you often see standing in fields beside highways typically have a capacity of 2–3 megawatts.
Per the U.S. Wind Turbine Database, the mean capacity of wind turbines that achieved commercial operations in 2020 is 2.75 megawatts (MW).
Wind turbines operate within a range of wind speeds typically ranging from 30 to 55 mph. However, when wind speeds are slow, energy production decreases significantly. For instance, if the wind speed decreases by 50%, power production decreases by a factor of eight. Consequently, wind turbines usually operate at around 15–30% of their capacity rather than near their maximum capacity.
The Antminer S21, with a power consumption rate of 3,550 watts, would consume approximately 31,098 kilowatt hours (kWh) per year.
A 2.75-megawatt wind turbine with a 25% capacity factor would produce around 6,022,500 kWh per year.
Dividing the annual energy output of the wind turbine by the energy consumption of the Antminer S21 yields an estimate of being able to power 193 Antminer S21 units with a standard 2.75 MW wind turbine. This setup would allow 193 Antminer S21 units to be entirely powered by wind, without incurring electricity costs.
With a 25% capacity factor, a 2.75-MW turbine would produce: 2.75 MW x 365 days x 24 hours = 24090 MWh
25% of 24090= 6022.5 MWh
6,022.5 MWh = 6,022,500 kWh
The Antminer S21 uses ~3,550 Watts 3,550 kW x 24 hours in a day = 85.2 kWh a day 85.2 kWh x 365 = 31,098 kWh a year
Cost Big Wind Turbine
The cost of a big wind turbine is substantial, with a typical price of around $1.3 million per megawatt (MW) of electricity-producing capacity. Therefore, to construct a 2.75 MW wind turbine, the cost would amount to approximately $3,575,000 million.
1.3 x 2.75 = $3,575,000
Cost Miners
The cost of these miners varies based on delivery speed. For instance, a Bitmain S21 can be purchased for around $4,000 with a delivery time of 2 months. Therefore, purchasing 193 miners at this price would amount to approximately $772,000.
193 x $4000 = $772,000
Earnings
The potential annual earnings from running 193 Antminer S21 units on a standard 2.75 MW wind turbine are estimated to be approximately $1,172,909 per year. This calculation is based on the assumption that each miner generates an average of $16.65 per day, resulting in a total daily income of $3213.45 when operating 193 units.
193 x $16.65 = 3213.45
3213.45 x 365 = $1,172,909.25 yearly
Return on investment Big wind turbine
With the initial investment required to build the wind turbine, it would take approximately 3 years to earn back the cost. Additionally, considering the cost of the mining machines, you would recoup that investment in around 0.7 years (8 months). Therefore, the total return on investment (ROI) would be approximately 3.7 years (44 months). Although the mining machines may need replacement at the end of this period or even earlier, the wind turbine will continue to operate, with the initial cost already covered. This highlights the long-term sustainability and potential cost-saving benefits of using wind power for cryptocurrency mining.
Total Cost $3,575,000 + $772,000= $4,347,000 ÷ $1,172,909 yearly Earnings = 3.7 years ROI
Medium Wind Turbine
A large wind turbine like that may not be feasible due to the substantial upfront investment required and potential regulations restricting the installation of such large structures. So what about smaller options?
Cost
A wind turbine that delivers 125,000 kWh per year has a cost of $40,000
And can run approximately 4 miners. with a cost of $16,000. This means this will cost a total of $56,000
A medium-sized wind turbine produces 125,000 kWh a year
125,000 ÷ 31,098 = 4.01 Antminer S21
4 x 4000 = $16,000
total cost: $40,000 + $16,000 = $56,000
Earnings
With each miner generating an average of $16.65 per day, operating four units would result in a total daily income of $66.60. This translates to an annual income of $24,309.
4 x $16.65 = $66.60
$66.60 x 365 = $24,309 a year
Return on investment Medium Wind Turbine
With the cost of a medium-sized wind turbine being $40,000 and the miners earning $24,309, it would take approximately 1.64 years to recoup the investment in the turbine and around 0.65 years. to recoup the investment in the miners costing $16,000. This results in a total return on investment (ROI) of approximately 2.3 years or 28 months.
Cost $56,000 ÷ by Earnings per year $24,309 = 2.3 years
Small wind turbine
So what is a small home wind turbine you can get and still power an S21?
..well none really.
Unfortunately, due to the laws of physics and the significant reduction in available power with smaller wind turbines, it’s not feasible to power a Bitcoin miner with a small turbine.
When the size of a wind turbine is reduced, the available power decreases proportionally to the square of the size reduction. In other words, if you decrease the size of a wind turbine by a factor of two (for example, by halving its diameter), the available power decreases by a factor of four. This relationship is governed by the physics of wind energy extraction and is an important consideration when evaluating the feasibility of using smaller wind turbines for power generation.
If you take a look above at a 4-year-long test performed in Holland where they tested several small wind turbines. The best-performing one only generated 2208 kWh a year. So this is nowhere near enough to run a Bitcoin miner. Even if you underclock it.
It’s quite disappointing to discover that using wind power for small-scale setups like rooftops or small backyards, particularly for Bitcoin mining, isn’t feasible. I had initially hoped it would be possible, but it seems that wind energy isn’t suitable for such small home deployments. In this context, solar power emerges as a more practical option due to its compatibility with smaller setups and the widespread availability of sunlight in various locations.
If you want to know more about Solar bitcoin mining check out this video we made a while back:
Is Bitcoin good for the environment?
The potential return on investment (ROI) achieved through using wind energy to power cryptocurrency mining operations is truly remarkable. Typically, the cost and ROI of a wind turbine for electricity generation to the grid can span 12 to 20 years! Making such investments less attractive due to the lengthy payback period. Moreover, wind turbines often need replacement after 20 to 25 years, adding to the long-term costs.
However, with Bitcoin mining, the economic viability of running wind turbines is significantly improved, leading to a more sustainable and environmentally friendly approach. By harnessing the power of cryptocurrency mining, wind energy becomes a more attractive and financially rewarding option, benefiting both the environment and the economy.
There are also benefits to the electricity grid. By connecting mining hardware directly to wind and solar generation plants, excess energy produced during peak sunlight or wind hours can be utilized for mining, helping to balance energy supply and demand and prevent potential waste of renewable energy resources. This approach has the potential to enhance the profitability of renewable energy installations and stabilize electricity prices.
Overall, the integration of Bitcoin mining with wind power presents an opportunity to promote renewable energy development and mitigate the environmental impact of cryptocurrency mining.
The Catch
So, why isn’t everyone jumping on the bandwagon of using wind energy to power Bitcoin mining? Well, while it might seem like a dream combo — profitability and environmental friendliness — there’s a catch. Bitcoin operates on an emission schedule that’s halved every four years. Picture this: every ten minutes, a block is produced on the blockchain, and the lucky miner who solves it gets rewarded with Bitcoin. Currently, that reward is 6.25 BTC, but after the halving, it’ll be slashed in half. This reduction in rewards could impact the profitability of Bitcoin mining, making it less enticing for some.
So if we take the same calculations after the halving this means that all our ROI calculations double
Big Wind Turbine ROI: 7.4 years or 89 months
Medium Wind Turbine ROI: 4.6 years or 55 months.
This seems a lot less appealing and even bleeds into the next halving, but remember, Bitcoin prices do not stay the same. They wildly fluctuate over the years.
While predicting the future of Bitcoin is uncertain, it’s evident that the cryptocurrency has been experiencing increasing demand and a steady rise in prices year over year.
Cast your mind back just five years, and you’ll recall Bitcoin trading in the range of $3,000 to $10,000 — a fraction of its current value. As we peer into the crystal ball, the price of Bitcoin in two to five years could soar to new heights, but let’s not get too carried away — after all, hopium is a powerful drug.
Citations accessibility:
https://www.greenminingdao.io/blog/why-bitcoin-mining-is-more-accessible-than-traditional-investments
https://www.independent.co.uk/tech/bitcoin-mining-solar-wind-renewable-energy-b2454666.html
https://www.anthropocenemagazine.org/2023/12/wind-and-solar-projects-struggle-financially-in-their-early-phases-could-bitcoin-mining-change-that/
https://www.cnet.com/personal-finance/crypto/bitcoin-mining-how-much-electricity-it-takes-and-why-people-are-worried/
https://cryptopotato.com/these-digital-miners-will-reshape-btc-mining-accessibility-in-2024-gomining/
Citations Energy produce by a Big wind turbine :
http://anemoiservices.com/industry-news/how-much-electricity-does-a-wind-turbine-produce/
Citations Bitcoin good for the environment?:
https://www.coindesk.com/consensus-magazine/2023/07/27/enhancing-profitability-of-wind-and-solar-through-bitcoin-mining/
https://www.anthropocenemagazine.org/2023/12/wind-and-solar-projects-struggle-financially-in-their-early-phases-could-bitcoin-mining-change-that/
https://www.independent.co.uk/tech/bitcoin-mining-solar-wind-renewable-energy-b2454666.html
https://etb.lv
https://www.linkedin.com/pulse/go-green-mine-crypto-power-wind-wellnutscg
This article is for entertainment purposes only and should not be considered financial or investment advice. This article may contain affiliate links and VoskCoin may receive donations or compensation when these links are used.
