How to use geothermal energy to mine Bitcoin

El Salvador’s president Nayib Bukele has actualized his promise of mining Bitcoin with geothermal energy with a new pilot project commissioned in October 2022. KenGen, Kenya’s energy production company, has expressed interest in providing cryptocurrency miners with geothermal power to run their rigs. These two scenarios stamp a recent report that cryptocurrency miners are pivoting towards renewable energy sources such as solar and hydroelectric power. Here, we look at how to use geothermal energy to mine Bitcoin.

How is geothermal energy generated?

First, geothermal energy is the heat trapped in the earth’s core and can appear on the surface as hot air or vapor. It can be used for most heating purposes to generate electricity. The process of turning the heat into electricity involves first converting it to steam which is used to turn turbines connected to generators that output electrical power. This process resembles using hydroelectric energy to mine Bitcon only that here we’re turning the turbines using steam instead of water.

Advantages and disadvantages of using geothermal energy to mine Bitcoin

Advantages of using geothermal energy to mine crypto

It’s renewable – Geothermal energy is among clean energy sources meaning that it doesn’t release harmful greenhouse gasses into the environment. Its renewable nature also means that it’s sustainable.
Geothermal power plants are scalable – The energy sources can be utilized by both small and large-scale cryptocurrency miners. Geothermal power plants can also be scaled to fit in either a rural or urban environment.
Not weather-dependent – Geothermal power isn’t affected by weather conditions as is the case with other renewable energy sources such as solar and wind.
It’s reliable – Unlike solar, wind, and other weather-dependent green energy sources, geothermal power plants can produce electricity without fail.
It’s cheaper – Geothermal energy is generally cheaper compared to other unclean energy sources. Also, once installed, it only requires maintenance and no monthly energy bills.

Disadvantages of mining cryptocurrency with geothermal energy

Not available everywhere – Although geothermal energy is a natural occurrence it doesn’t appear everywhere on the earth’s surface.

High drilling costs – Where the energy doesn’t naturally manifest itself on the surface in an area with the potential for producing geothermal energy, the cost of drilling and developing a geothermal power plant is high.

The amount of geothermal energy isn’t constant in all locations – The amount of geothermal energy that can be extracted in one location isn’t the same as what can be found in another location. As such, it will dictate the number of crypto mining machines that can be comfortably powered in various locations, thus likely to hinder the expansion of virtual currency mining operations.

Risk of resource depletion – Geothermal resources can be depleted over time thus being an inconvenience to crypto miners who are forced to turn to other energy sources, which is an extra cost plus a disruption of their mining operations.

Requires special skills – The hot air from the earth’s crust can easily cause bodily injuries thus requiring people with a unique skill set to build, operate, and maintain a geothermal power plant.