TFTC: A Bitcoin Podcast - #765: The Bitcoin Home Mining Playbook with Exergy

Episode Date: July 1, 2026

Marty sits down with Tyler Stevens and Dylan Seib to discuss their playbook for integrating Bitcoin miners into home and commercial heating systems, monetizing excess solar instead of selling it back to the grid, and building open source control systems that turn industrial ASICs into useful home appliances. Download The Home Mining Playbook here: https://www.tftc.io/home-mining-energy-playbook Tyler on X: https://x.com/tylerkstevens Dylan on X: https://x.com/tronsington Exergy: https://exergyheat.com/ STACK SATS hat: https://tftcmerch.io/ Our newsletter: https://www.tftc.io/bitcoin-brief/ TFTC Elite (Ad-free & Discord): https://www.tftc.io/#/portal/signup/ Discord: https://discord.gg/yHGkvYxdqT Opportunity Cost Extension: https://www.opportunitycost.app/ Shoutout to our sponsors: Bitkey https://bitkey.world/ Aven https://www.aven.com/bitcoin CrowdHealth https://www.joincrowdhealth.com/tftc Unchained https://unchained.com/tftc/ Lygos https://lygos.finance/ Salt of the Earth: https://drinksote.com/tftc Join the TFTC Movement: Main YT Channel https://www.youtube.com/c/TFTC21/videos Clips YT Channel https://www.youtube.com/channel/UCUQcW3jxfQfEUS8kqR5pJtQ Website https://tftc.io/ Newsletter tftc.io/bitcoin-brief/ Twitter https://twitter.com/tftc21 Instagram https://www.instagram.com/tftc.io/ Nostr https://primal.net/tftc Follow Marty Bent: Twitter https://twitter.com/martybent Nostr https://primal.net/martybent Newsletter https://tftc.io/martys-bent/ Podcast https://www.tftc.io/tag/podcasts/

you've had a dynamic where money's become freer than free if you talk about a fed just gone nuts all all the central banks going nuts so it's all acting like safe haven i believe that in a world where central bankers are tripping over themselves to devalue their currency bitcoin wins in the world of fiat currencies bitcoin is the victor i mean that's part of the bull case for bitcoin if you're not paying attention you probably should be gentlemen here we are good morning dylan welcome to the show this is your first time on tyler this is your second yeah this is uh i'm a long time first time so this is really exciting for me well it's exciting for me too because we've been uh doing some work together behind the scenes

putting together a playbook for uh mining at home and i think uh just jumping right into it this is like an educational series that we're trying to do here at tftc just to set the tone and set expectations and get people excited to stick around what are people going to learn if they listen to this whole episode that mining at home mining in your business is useful and can add value to your business yeah i think uh a lot of people are wondering what's going to happen with all these miners shifting to ai and this playbook really outlines the case for building integrated mining and and how it can be useful like heating systems solar systems battery systems thinking about mining as a tool in the toolkit of like energy infrastructure not just data center

operations yeah and i mean tyler you've been on the show before but many people are listening now may have missed it because our audience is growing like exponentially since you were last on uh over year ago so there's a bunch of new freaks here um but just to set the tone on authority what gives you guys the authority to write this this particular playbook so dylan and i have been steadfast focused on the home mining and really hash rate heating space for two years now is coming up on um so i authored the book bitcoin mining heat reuse just out of curiosity kind of fell into that rabbit hole we talked about that on the first pod thanks for the mentioned there marty um really focused on how we can integrate bitcoin miners into heating systems

electric heat that pays people have seen the retrofitted space heaters the hacked together uh products and gadgets all the way to the heat bits and and dylan and i came in and said well how does this really scale into the actual energy infrastructure of a building your furnace your boiler not just a gadget you plug into the wall but part of the building you call a technician you get it integrated fully part of your solar system, etc. And that really led to the Heatpunk Summit, which we've talked on before, where we bring together mining developers and people from the building and energy space, electricians, plumbers, home insurers, ASHRAE certifiers, all this stuff, we kind of back solve this problem.

It's long winded, but to say, you know, we believe wholeheartedly that there's this new use case for Bitcoin miners, this new home for them, like distributing into all these different pockets of stranded energy to heating systems, to solar systems. And we're really focused on building integrated miners and we're trying to solve that problem. So this playbook is really an outline of how we do it right now today. And then a little bit of discussion of where we think it's going to go once the technology and educational people challenges get solved as well. Yeah, I just want to add that at Exergy, we've been implementing miners in various systems and testing them, seeing what works, what doesn't.

We've come to a solid conclusion that control and software for these miners just sucks because they're designed for industrial use cases, not necessarily for homes and smaller buildings. And so we've spent the better part of the last year running numbers, making sure that the calculations check out for running these in your home and not necessarily being profitable, but being cost-effective relative to your utilization case, whether that's solar monetization or heating your home or building. And so we spent the better part of the last year developing control systems to force these industrial boxes to operate the way we want to.

And so I think we'll touch on at the end of this about what the future of home mining might look like as open-source development takes off. Awesome. and so i mean just jumping right into it i mean the first section of the playbook is laying out the case that you have an advantage and you have to use it and so diving into what that advantage is um compared to maybe industrial miners yeah if you think of a mining operation the first thing that comes to mind is okay i need to um exceed my operating costs in in bitcoin mining revenue in bitcoin profit right that's kind of the goal and that's very hard if you have on great

electrical rates even for some commercial rates um and extremely hard for residential customers that have higher expensive electricity rates time of use space pricing all these things in addition to like the noise and the all the challenges there do i have the right power outlet um our argument for you have an advantage use it is buildings have sunk costs almost all buildings on earth are heated. And the simple framework that like all the electricity you put into a Bitcoin miner gets turned into heat. That really is the undertone of how we set the stage for why we think home miners, building integrated miners have an advantage. You don't have to run a profitable operation. You just need to be useful. And you can be useful by, you know, counting the

Bitcoin earnings as a rebate against your electric heating costs that may come in cheaper than your alternative heating fuel, right? Or you just need to count the Bitcoin earnings if you're running that miner instead of sending excess power back to the grid for a large solar system. Is that more valuable than what the grid credits would give you, right? Or maybe hash price rips, right? And you don't have a miner at the time, but if that building did have a miner, it could take advantage, seize that moment and opportunistically join into that profitable mining scenario. So that's where like the useful minor framework is saying these things are tools they can heat buildings they can monetize solar and they can also run profitably sometimes and you want that tool in your energy

system at your building so that you can use it when it seems fit got any other comments no that's so i mean i think this is why we put the playbook together there's a ton of people myself included and been like i would love to do this like just because not only being a bitcoin winter it's very cypherpunk and the the whole idea that you can subsidize part of your heating costs with bitcoin miners while stacking sets in non-com kyc fashion um is always appealing but it's like all right how do i actually do this and trying to discern whether or not your industrial building or your residential home is actually a fit for this model it really comes down to being able to calculate the real cost of your current energy stack and then weighing it against switching

it out with a bitcoin mining heating system so what what calculus goes into that you want to talk to him on uh the different heating fuels because that's like the number one go no go gauge really yeah so we all like to be comfortable when it's there's it's cold you want to be comfortable and heated. And so most people don't really know or care what their fuel source is. And that's probably the first step in figuring out if this is useful for you. Because in the United States and I guess worldwide, we have natural gas heating, propane heaters, heat pumps, electrical heaters, wood for the guy playing mountain man. And all of those are just different fuels to get BTUs into your home, whether that's through a boiler or through

a furnace, what have you. It's just an energy unit. All of these fuels, they run at different efficiencies and deliver different BTUs per unit volume. And so what we do is we can convert a BTU into a kilowatt, right? because it's well let's let's back up for for any of the ignorant a b2 is a british thermal unit right yeah so that's like the um the the the common term in the heating industry right because

we're trying to translate here from the mining industry to the heating industry people talk btus when they're buying heat miners talk kilowatts kilowatt hours um and so what dylan's talking about here is like we convert the btus to an equivalent kilowatt hour price we bring it to the mining language okay and then from there we say okay of all these different heating fuels who's like the most poised to benefit right to be useful to offset that heating cost how can we get that equivalent dollar per kilowatt hour what a miner would be looking at if you're talking to a heating guy it's like a dollar per btu we're just talking about two different languages here um this is all to say like some fuels are better suited than others right yeah sorry i got confused

because thermal units are dumb and how they convert um so anyways any building owner worth their salt is aware of their utility bills and what they pay and so you can take the exact you can you're metered you know how much fuel you've used or you know how frequently you need to top up your propane tank um you know how much that fuel costs how frequently you're getting it how often it's being delivered so you know all your usage you can get back out your duty cycle of how much heat not duty cycle how much heat your building needs you can convert that to an equivalent electrical electricity volume uh and directly compare that with miners and so because all miners are generally sold in 3 000 if you're an industrial miner uh 3 000 watt chunks and so

can back that out and you can determine your duty cycle which is i need this many kilowatt hours this miner runs at this rate this wattage that's my duty cycle that's the amount of time in a month that i need this miner to run produce the same heat as what we're already getting can i have a comment here yeah so you got to figure out okay do is my fuel that i'm comparing too expensive right and and if it is can a miner running out electricity with bitcoin rebate can that be competitive so that's like an energy arbitrage right um is one cheaper than the other if i count in the bitcoin but what dylan's talking about now is very important is the duty cycle because we're talking about how do you know if you're a good candidate miners call this uptime right they say

i want 99 uptime the hosting companies are talking about it it means your machines online more it's really just how what percentage of the day is it running right that same thing applies to heating industry is called a duty cycle is your furnace on 10 minutes out of the hour three hours out of the day 45 minutes out of the day to duty cycle you actually want a longer duty cycle what that means is a longer heating season means it's colder not just cold one day of the year but like cold for months because that means the miner is going to run more and it pays you back more and it warrants its upfront costs so long-winded from both of us here but like the two main things are like is your energy arbitrage pricing good and then are you going to use

enough of it that it's going to be worth your while yeah yeah this is just for the heating use case we've got others to discuss yeah well i mean sticking on the heating use case and just the different sort of fuel sources or energy power sources for lack of a better term that is a better term uh so like bring solar into this and we talk about like the third league profitable mining under your utility rate like so bringing in like the opportunity cost or weighing the opportunity cost of mining versus these different fuel sources i mean you just described a big chunk of it but going a little deeper yeah so we live in the united states we have relative to the rest of the world very abundant energy we're fortunate enough to have

natural gas piped throughout all of our cities, which is a problem for comparing directly to hash rate heat because we have cheap and abundant natural gas to heat our homes and not necessarily having comparative electrical rates. I think electrical rates are just going up, so that's not great as just comparing one fuel to the other. But if you were able to generate at home your own electricity with solar panels that really adjusts the comparison because now you have the surplus power that you're generating on the spot that you don't have to buy from the grid which then offsets the cost to run your miner which makes it much more competitive against natural gas now uh what else we have propane it's generally expensive it also has very variable

rates across the year depending on where you're when you're topping up your your tank and so if you factor all that in it propane lands relatively very expensive relative to electrical rates and and on the the expansion for how solar is a useful minor principle when you're not heating is typically for people that have solar arrays here they're connected to the grid there are some off grid solar arrays you know if you've got a cabin up in the mountains but most people are connected to the grid. And so what happens is if you oftentimes like you'll be generating more than your building's using and that excess energy goes back to the grid, you're selling it to the grid in reverse. Instead of buying it, you're selling it. They give you like pennies on the dollar,

or they'll give you credits into your utility account. And if you don't use them for the next month, they get washed out at the end of the year. And it's not really advantageous to the customer, right? Think of it like airline miles instead of cashback on a credit card. So what we're arguing here with solar is instead of sending that excess solar to the grid, blow that excess energy through a Bitcoin miner. Maybe you don't need the heat. You just dump the heat outside in this scenario. It's still the same tool for the building. It's a hash rate machine. It's a Bitcoin miner in the building. It can heat the building. It can also just flow excess power from a solar array or local generation i met people last we talked marty we were talking about my alaska trip where i saw

people with like micro hydro in their backyard which is crazy anyways excess energy um you flow it through that and and it puts money directly into your pocket and then the last one is that profitable mining scenario there are moments all this is saying we have this tool in the building we have this black box that makes heat and money and it can connect to your solar array it can connect. It knows the Bitcoin hash price. It knows the Bitcoin price, the difficulty. It knows when you're calling for heat. This is all intelligent system like building energy systems. All this is to say it's the same tool, but it can do three things. It can heat the building when it makes sense. It can dump the heat outside and just monetize the excess energy when it makes sense.

But also it might just straight up be cheap enough at night with cheap power or if Bitcoin's price rips to just mine full time during that moment for profitability. And so this is kind of the putting a bow on the useful miner principle which is like there are there are these three scenarios where you might want to mine and you better damn well wish you had a miner in the building to do it during those times because it's gonna we've proven seen through our data that um it turns out to be pretty worthwhile should we jump into the data or should we dive deeper into the industrial use case like um yes you were doing the analysis of the the energy sources and the three different leaks and then the sort of three scenarios you want to set yourself up for where

it's actually cheaper heat with mining uh yeah you have excess solar um so it's profitable to instead of sell that back to the grid sell that to the bitcoin network or holy grail um the the price of bitcoins ripping difficulty is relatively low and at any kilowatt per hour price or at any what many would deem to be historically a high kilowatt per hour price to mine bitcoin maybe it's profitable at some point because the price is just ripping so much and so you want to create that optionality to um do each different thing heat um sell to the bitcoin network instead of the grid and just mine bitcoin because it's profitable um what does that look like in an industrial use case like how should these individuals who own an industrial facility

and operate one think about um like actually setting this up like what do they need to replace? What does it look like there? Well, first and foremost, for the commercial industrial scale, I think they're poised to benefit well. A little bit of that is economies of scale. Also, they might use heat in a larger duty cycle or what the miners would call an up time, right? They just need more of it, maybe more of it for longer. They also have these intelligent building management systems, right? These are large commercial spaces where the utilities are a substantial bill each month and they're trying to minimize that or reduce it they also benefit from commercial electric rates right so it's not residential so like all these

things point to commercial being really well poised to benefit um in terms of the actual integration i'll tee this up here and i want to hear dylan's thoughts too is like we've seen this on the residential side and we're working on our first commercial install right now with the mechanical electrical plumbing team out of boulder county colorado it's that building still being built but the same principle seems to apply which is you don't want to design the minor to be the main heat source meaning it's not designed to heat the whole commercial space the whole home on that coldest day the reason is miners are expensive for every additional bit of heat every additional kilowatt or btu we were talking about because you need those fancy asic chips that are

expensive whereas like a gas furnace if you need more heat like you just burn more gas right you put a bigger valve in it you just more fuel bleeds through it's it's marginally more expensive to get a bigger furnace so in this sense you really want to size the system to be optimized for the average heat load so that that duty cycle, that mining machine's uptime is optimized. It's high. Now, that sizing optimization could be like, what is the best size do I need if I'm targeting heat? We also talk about in the report, what is the best size if I'm trying to monetize solar as my primary use case, right? It's not going to be size it for July 1 on a sunny day with no clouds. it's going to be sized for your average solar production throughout the summer every day

that way you avoid kind of this larger upfront cost just tangent on that the commercial guys do get to benefit from writing things off as business expenses obviously the hardware the capex there but yeah back to the sizing comment quick the way i frame it in my mind we actually at exergy we don't recommend if anyone's listening to this thinking like do i rip out my furnace do Do I rip out my boiler? Do I put in a minor? No, we add the minor to the furnace. We add it to the boiler. Think of it like a hybrid car. A hybrid car doesn't have a 300 horsepower engine and a 300 horsepower electric motor and a giant battery. It's kind of fine tuned and optimized. You know, your little RAV4 has got a tiny little electric battery with a tiny little electric motor that

can go 20 miles. But the way it transitions between gas and electric, it's like this fine dance, the car is controlling it intelligently, you get way better fuel economy, right? And so that's what we're introducing into the building, this smart building where you have gas for that coldest day. You have the miner for the majority of your heating needs. You have the miner that can dump heat outside for the majority of your excess solar generation. You didn't overspend. And then in those instances where it is profitable, you've already got the infrastructure integrated to just kick those suckers on. And this is really this intelligent combined system. So that's how we think about it for residential.

I think that same logic applies to commercial. You got any other thoughts? Yeah. I mean, one other note is we've developed a system such that the building itself can determine which fuel source is most profitable at that time. You are calling for heat and dynamically switch back and forth. And so it doesn't have to be all or nothing,

which is really, really where this buddy system kind of shines. Like I mentioned earlier, You don't care where the heat comes from. You just want to go to your thermostat and hit 72 when you're cold. And then the building will just say, I'll figure out the most economical way. And that can pull in the solar. That can pull in hash price and whatever your gas rate is and really get that integrated. So it's just effectively set and forget.

And you just know your building is running as efficient as possible using all the inputs. And so I think industrial guys have, or larger scale buildings have an advantage in that it's very easy to add solar panels to your building and you don't need the latest and greatest, most efficient. You can just throw a power generation source in your building and really change the dynamics of how your building operates. What's up, freaks? This is where it was brought to you by good friends at BitKey. As things happen, things get lost. You need to replace your phone. Life happens.

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and start your self-custody journey today. This episode has been sponsored by our good friends at BitKey. Sup freaks. This rep was brought to you by our good friends at Ligos Finance, Celsius, BlockFi, FTX. They took your Bitcoin and gambled it away. Ligos can't because they never hold it. Non-custodial lending on Bitcoin's base layer. Your keys, your collateral is verifiable on chain. Go to ligos.finance. Tell them that TFTC sent you. And I think one of the needles we need to thread or ties we need to not here is i mean we're talking about this like you can do the combined cycle of your furnace and the bitcoin mining like the building will figure it out but i think um just really driving home like the the economics of the mining specifically and

like how you establish a new baseline cost and how you fit in the mining revenue into that as a rebate or a subsidy or if you want to hold the bitcoin and yes your power bill may go up but you've got this bitcoin on the side like what's that look like yeah there's a lot of different units we talked about not very eloquently at the beginning here like fuels and propane and gas and electric and all this stuff at the end of the day it's all just like dollars per unit of energy dollars per kilowatt hour heat is energy electricity is energy right um your miner runs off of it your heating fuel runs off of it all these different things the baseline is there's some cost to run your miner. Um, maybe it costs you 10 cents a kilowatt hour, right?

Um, maybe your, your propane heat, this is how we think we will convert that dollar per gallon to an equivalent dollar per kilowatt hour. So then maybe your propane comes out to 9 cents a kilowatt hour. Okay. So your propane's just cheaper than your electric heat Bitcoin miner because the Bitcoin miners 10 cents a kilowatt hour, the propane's nine. But then the Bitcoin miner gets three, four or five cents per kilowatt hour back equivalent in sats. Right. And you could obviously hold those sats for the long term and let those appreciate. But even if you just treat it as the raw hash value, the dollar nominated value in that moment in time, you kind of have this 40, 50 percent reduction in cost, net cost compared to the propane. That's obviously

dynamically switching as the bitcoin price changes every second but um that's why it's really important to bake this stuff into the building brain itself it's not just like a one-time napkin math you run right but i think what you're pointing to to tie the knot on it marty is very interesting is um there's gonna be moments in time where the the bitcoin heater is 50 cheaper than propane there's gonna be moments in time where it's only 15 cheaper than propane it's gonna be changing week to week, depending on the Bitcoin price, maybe not too much over the long aggregate on average. Maybe you just want to stack sats because you believe, you know, that's the other thing. All this napkin math, like kind of becomes a wash if you just wait full cycle, right? And let the

sats appreciate. So another operating mode, I have it up in front of Dylan and I here is like one of our customers, he didn't want the logic to say the building chooses the cheapest heat in real time he wanted the logic to say the building prioritizes sat stacking heat over gas always so even in the moments when the gas heat is cheaper because the building knows this the building brain knows this it will still choose to heat with the miner first because he wants those sat yeah and so last week there was a 10 downward difficulty adjustment which like hash price didn't change all that much but hash value was awesome so like my home brain started screaming at me crank all the miners like open the windows turn on the fans push all the heat outside because

i have solar at home and it's like there's this opportunity difficulty dropped you can stack 10 more in hash value okay that's um and you don't need the heat but it's like i want the sets and i have the energy let's go for it yeah because the input well not only that you have the miners the infrastructure in place to take advantage of it well it's kind of like the opposite of these utilities sending people letters saying like do not consume too much energy peasant like turn down your ac and we're the opposite we tell our customers to crank those motherfuckers get the bitcoin well that i mean and this gets to an important i mean you guys have been alluding to it and talking about but like the building brain i love this concept how does the building

brain work i mean conceptually yeah yeah i think you've described it well like runs the calculus of what makes the most sense to do at any particular point in time based off of the cost and profitability the cost of the the inputs and uh whether it's the fuel source of the electricity and the profitability of the mining at any given point in time but like how does that company that or excuse me that uh home brain or that that building brain work i'll i'll give some analogies to set the stage high level and then dylan will talk about it because he built the dang thing um Back to that hybrid car analogy, like the car has to have a brain to decide when do I pull battery power, when do I use the gas power, when do I charge the battery, when do I put this much power through the motor. When we introduce this second device to a home that can provide heat and it can also provide Bitcoin, you need to connect it to all the other devices in the home, all the energy infrastructure so that it knows what the heck is going on and it can make those intelligent decisions.

So that's the home brain. I think it makes sense for this machine to live locally, right? Just to comment quick on like local software self-hosted. you'd think like smart home appliances people think like your google nest or whatever your ring it goes to a subscription you get the gadget but the brain's not in the home the brain is you know rings cloud server um and that introduces you know there's some sovereignty and privacy concerns there but there's also just like complexity with sending that data out for all these things your your hybrid car doesn't have the engine control unit at general motors factory

It's in the car. Right. So we think the brain should be in the home and that way it can actually physically wire to things. Right. So now the brain will connect your fuels, your fuels. So the brain knows the cost of your natural gas. It knows the cost of your electric rate and maybe the time of use when that electric rate might change. It knows the Bitcoin price, the mining network difficulty or just straight up hash price. Those terms can calculate hash price. It then also connects physically like wires to the thermostats. That's a good reason why the brain has to be there. You could do it digitally, but there's benefits in just having a straight up analog connection.

So now it knows when you're calling for heat. And then it can also connect to the solar inverter. So it knows when you're generating energy, when you're calling for energy, heat, when you're generating energy, solar, it knows the Bitcoin price when it's profitable. It can combine all this data to say, well, I know the cost of the fuel to heat. I know the Bitcoin price. I know the electric rate. And I know how much electricity we're generating.

So all of that goes into one equation to say, here's the current effective cost of heat. Maybe that's cheaper than gas. Maybe it's not. All this to say is we would connect all of these energy, heat, money, and information sources. That's how I would frame it, those four things. into one it's really just like you could run it on a raspberry pi it's open source software it's not too complicated and then you set the automations and the logic to determine in real time depending on what you're doing and you can go stir crazy wild west dylan offers home assistant

that's the software we use that we build our software in he offers office hours every week so so bear with me because this is my favorite topic beyond bitcoin and bitcoin mining uh i'm a huge champion of home assistant it is open source software huge community that runs on raspberry pi it's essentially like it's basic an input aggregator and automation server and when i say input aggregator it's everything like phone locations energy inputs uh iot devices whatever you can think of you can import into home assistant um like temperature sensors throughout your house whatever minor control uh your solar production all of that and i mean it's so easy now because you can like just hook up a clanker to it and say hey i want this

automation i have these inputs what can we build but it enables you to have a home brain that can react to anything so when i first started getting into bitcoin mining at home and home mining i had a fleet of s9s throughout my house and whenever my wife left my brain would say she's gone can i crank it and it would just crank it because i mean it would just drive her insane to hear the s9s just whirring away and so we have taken over the past year we've kind of I started at that framing of you can just have miners react to whatever. And so over the past year, we have worked to get the miners tied into thermostats because it's

intimidating for a lot of people to take a miner and duct it into their HVAC system. So maybe you just start with like an Avalon mini three or a stealth miner or a slim 19, one of the 850 watt max space heaters. and like you like you know you want to do this cool so you just plug that in at home you grab a either hass minor or one of the extra g integrations for home assistant that lets you pair home assistant with the minor now you have full control and you can add like a digital thermostat you can control on your phone now you have full control at home minor reacts to

the temperature sensors and the thermostat and depending how loud it is and whether your wife this home or not um and so using all that logic you have all these different inputs and that is what enables the dynamic switching of fuel sources the i have excess solar let me can i go uh difficulty just adjusted you can make all this happen dynamically you can add your input so it asks you hey should i do this and then you have input and say what your building is doing or it's really the limit is your imagination because it's just i i see the world and just inputs and outputs you have all these inputs let it rock yeah just a last comment here is like this the building brain is where we arrived after we started thinking about miners as iot devices

not as servers that are on constantly and if you think about them through their api connection and you connect them with software to a tool like home assistant then as dylan said you can go wild west because now you can control them as intelligently or as unintelligently as you want you're muted i'm sorry there's my neighbors have the landscapers here so i've been muting so we don't get background noise but dylan i mean you touched on i think the best place to go from here is really dig into hardware selection like what's the right minor for particular jobs and i think that's you know like there's so many variables and inputs to um making these decisions and obviously the hardware selection is one of the biggest ones considering the the upfront costs so

how do you guys think about that yeah the most important question is like you what's your goal are you doing space heaters are you are you integrating to a furnace are you integrating into a boiler? Are you just trying to mine excess solar? Can you have loud machines screaming in your garage? So depending on your goal, that determines, that's kind of like step one in determining which machine you need to integrate. For a lot of people, like I mentioned, it's scary to start or hire electricians or start ducting into your infrastructure at your house. So start the space heater that's easy uh very modular control and so you can start with small rooms or stack a couple whatever um and then i'd say the next requirement is knowing do you have power

available to run this thing what's what infrastructure changes do you need to do to get this miner where you want it at whatever power level because if you know your duty cycle your demand um all that factors in so as tyler mentioned earlier there's kind of two sizing methods for hvac um we call it baseload and peak baseload is designing for your average cool so i think denver on average is like mid-20s 30 in wintertime and at my house a couple mini threes solve that for me they don't keep up when it's single digits outside and so that's when i have my furnace step in and so depending on what you want to spend to make up that delta you can plan for just the 30 degree days and that's this system or if you want to plan for

colder days you need to stack additional miners but then you run into this op-ed or this capex problem where you're buying machines that don't turn on all the time and so it's like why why would you spend the extra money when you already have the existing infrastructure and so part of what we do is use your utilities or you can use the calculator on our website to determine help determine sizing and what you need to do to meet your demand yeah i think we gave an example in the playbook if you take a look at it and give it a read um you'll see you know your sizing for base load might say you need 5 000 watts and so you could buy one 5 000 watt miner that's new and maybe it's three grand or maybe you could buy two 3 000 watt miners s19s are like 50 bucks right

now right and then that's 6 000 watts so that's the kind of thing that comes into mind when you're selecting the right hardware for the job the your goal um your heating application are you heating water or air right that's a big one um we should also say control right not all of the miners and i'm sure we'll get to this like they're designed for data centers and they most of the manufacturers all the manufacturers basically aside from proto are chinese manufacturers with closed source firmware so some of them um have aftermarket options some don't some play nicer to talk to you know home control software like home assistant some of them don't so the control is a big one what firmware options are available what kind of heat it delivers what kind

of power requirements it has because you even have that at your house um and the sizing so freaks this rip was brought to you by our good friends at salt of the earth it's so delicious this is my pink lemonade electrolyte mix it's pink himalayan salt there's no sugar it's way better at LMNT Liquid IV. I went through a big electrolyte kick, testing them all out, and I landed on this, settled on this, been drinking it pretty consistently every day for two years now. It is my favorite. This is the Pink Lemonade. They have orange here. As you can see, this one's ripped. I had this on the train ride back from New York last night. I'm always stocked up with these things. They also have creatine packets. Very convenient,

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ago we joined crowd health we've had two babies we've had multiple health events and we're never going back to health insurance crowd health is crowdfunded healthcare so you you sign up for crowd health you pay a monthly fee you help out with other people's bills uh and it's significantly cheaper than health insurance we were on cobra it's a family of three when i when i left my last job before i went full-time with cftc went on the crowd health now as a family of five we pay uh i believe 700 a month it's significantly cheaper they're going to negotiate prices lower for you they've consistently negotiated health care prices as much as 50 60 80 in many cases they help out with babies you have a pregnancy you pay the first three thousand dollars and the

and the crowd covers the rest. If you have a regular health event, you pay $500 and the crowd pays the rest. Go to joincrowdhealth.com. Sign up today. Use the code TFTC. Opt out of health insurance. I'm uninsured, baby, and I love it. Use the code TFTC at joincrowdhealth.com. You'll get $99 a month for the first three months that you're on the crowd health platform in the community. Bitcoiners, you found sovereign money. Now find sovereign health and sovereign health care and i think that's the most important thing to to recognize if you're thinking about making this decision that you guys have built the tools to really i think the sizing is most important just you're just running the calculus in my head like how do i implement this in a way where i can

stack more bitcoin or lower my my electricity bill yeah we're working on some some more tools to put on our website right now we have like a simple calculator that helps you do the energy arbitrage so we mentioned that earlier in the episode um just like what does propane heat cost compared to a bitcoin heat right and it does all these unit conversions that we got bogged down over it does that for you so this is like napkin math that's what's on our website now we we don't have a public calculator yet for the sizing um that's a little harder because it depends on how much heat you use most people don't have their bills on hand but we do want to get towards that so definitely stay tuned there for that and i pulled this up i feel like this is pertinent to uh

what we're discussing now daily minor on hours versus gas on hours and basically highlighting the different costs across different time scales yes yeah dylan you want to talk about that yeah this was kind of our first install um this customer has an m64 and and how it works is it has a heat core enclosure which is just it provides a pump a dry cooler and a heat exchanger and what we did was we added a radiator to that loop without a fan that just slotted into his duct work and his circulator fan pulls the heat off of that distributes it around the house if there's any excess before going back to the miner it gets pushed out with the dry cooler but what was interesting is that since we installed that that was his primary heat source we kind of

expected the furnace to turn on a bit more but as you can see in this graph there's like just a couple blips over this time period and i'm very confident that was user error and the customer changing the band of the set temperature and so how his system works is that the miner is plumbed is wired as stage one heating and so that will operate as long as the current temperature is not greater than four degrees off of the set point temperature if it is greater than four degrees his furnace kicks on and just tops it up once it gets back into that dead band minor it's minor only and so we had no complaints he was comfortable uh i mean it's awesome it's one thing to do it on paper but it's another thing to see it in the wild actually

working as expected and so this customer loved it he has a minor just cranking away whenever he he needs heat um it's also an example of like that miner is technically like 10 times smaller than his furnace in terms of total possible energy output that one miner but this is a testament to how we size where we say it's not worth getting that like imagine if we bought him 10 10 miners that would have cost him a fortune right and and i don't even think we could get enough power in there for that we got one miner and it solved 99 of his heating demand over those months and the gas never had to kick on so that's just a testament like most heating systems are oversized for that worst case condition so that proves that well um the sizing though and i mentioned this before we

switched that chart is like we're gonna have some tools coming out on this it's a little bit harder because you can't just really call your standard hvac guy and ask about like hey what size bitcoin mine or do i need um you know we've found that most of the heating industry is sized based on your peak load same with solar actually right um and so this notion of not sizing for peak load like this buddy system this hybrid car approach hybrid building um there aren't that many people that that size that way so it's just it's been a little bit of an uphill battle to kind of communicate that to the trades yeah well i want to bring this up too just like really drive this point home you guys shared this data too and i think this really does a good job of like really

driving home the the comparison rates for the effective heat cost yeah that's an output from our calculator at calc.xgheat.com and it pulls in you set your location and it pulls in the average costs for your state or you can override it with your actual costs and you say oh i have a s19 i have an m64 whichever model you can put in a custom if you have like a mixed system and you can get a direct comparison as to what is your fuel cost what's your subsidy what's your break even rate all these different values to show how the hash rate heating system can compare to your existing system yeah and so with this it's a 45 savings on your heating bill yeah and so this customer in this snapshot he already had electric heat and so it was a no-brainer for

him he's just switching from one electric heat source to another electric heat source and if your cost is the same and now you're getting a subsidy via bitcoin mining rewards it's a crazy savings it's the easiest to switch if you have electrical heat it is the easiest to switch to bitcoin mining yeah and how many we're just using one one miner here it looks like right this one is two s19s two s19s yeah and you can buy them what are they going for these days take 50 bucks and get i mean it's like 50 to 100 bucks to get vanilla s19 yeah which is silly it is silly i mean that gets into we'll get to that later like the dynamics of the current mining environment, considering all the mega miners

getting kicked off grid by all the hyperscalers. But before we get to that, I think what I really wanted to drill into is something that you brought up, Tyler, which is the HVAC companies, they don't understand this concept of the hybrid smart home yet. And I think that's one of the big, looming questions that you guys are obviously trying to solve, but making this a popular setup for most people.

i think the value of this playbook is going to be for that niche audience who's into bitcoin and like yeah we're willing to put in the work and the time and the capital to do this because not only do we think it's cool like we're thoroughly convinced we've seen the numbers we've run the numbers and it does make economic sense but then what do you think is like the critical tipping point to go from that niche heat punk audience that we have here at tftc and that guys have at pod 256 to the broader public you know i think it's been hard to convey this sizing technology approach to a tradesman just to set the background here like when you need a heating system or you want to upgrade most people don't do it themselves they don't install themselves they

call a guy right they call professional a tradesman he's certified and so that's who we have to teach really. Right. You know, um, that's the, the B2B path one, but also it's, it's just your distribution channel. I mean, you could find like the people that are directly buying furnaces and water heaters and wrenching onto them themselves. I would categorize those as like the Bitcoin audience that's listening and loving the show. Um, shout out. Uh, I think for the, the, the other distribution path, what did we think was an interesting path Dylan that we want to check it's like the whole home humidifier these add-on kits so this notion of strapping a black box and saying it offers x y and z benefits is not a foreign concept it is new with bitcoin but like

people get whole home humidifiers this is an auxiliary system it has some control most of them are cloud and then they marry to the thermostat that's not so different from what we're doing it's like a strap-on kit a backpack that straps to your furnace a small thing that sits next to your boiler right um something that plumbs into your water heater and then there's some control set up to marry it into the rest so i think if we can frame it that way um then we'll find the success to say i think we have to solve the sizing part that's actually what um one of my main takeaways you'll see at the conclusion of the playbook is like in each of our four case studies we were very proud with how our sizing technique played out.

You know, no one's like, this is totally the wrong size. The miner only runs and it can't keep up and the gas is always on. So we're happy with the sizing. What I think is gonna happen is we're gonna start to see with more installs and more data collection, we're gonna get our rule of thumb, our finger in the wind estimate.

So that's how most of the heating system industry works. It's like, how many square feet is your house? oh, you need a furnace this big, right? I think we at Exergy and the hatchery heating industry are going to come to, oh, how big is your house? You need a minor this big, right? And so when we get to that rule of thumb, that's where I think we can kind of bake those into these buddy system kits, like the whole home humidifiers, where it's just like straight on the label, the distribution is easy. The HVAC tech reads it, it goes, oh, this mining system, smart home building control unit is good for homes 3 000 to 4 000 square feet done and like you don't have to make it any more complex

than that does that make sense it makes total sense uh yeah i mean like the map is the terror we're like figuring out what the map looks like right now in this whole budding industry and i think you guys are doing very important work as well as happy to partner with you guys on this playbook um and i hope you guys get it out there because this is i mean we've talked about this tyler and dylan when we were in vegas like it is time for this stuff to happen and i think the timing is perfect considering what's happening for the industrial scale miners like i feel like there's gonna be a flood of basics absolutely and into the hands of um individuals and smaller operators but dylan it looks like you wanted to say something before we get into that yeah and

And so I think pushing the needle on HVAC guys wanting to install this is definitely the right path to take. I want to call out, I do envision a world in which a solar salesman knocks on your door and they're also pairing this instead of upselling you for a battery, they're upselling you for a minor kit that just consumes your excess. because i i grew up in california they sold a crazy solar deal of like you're gonna make a bunch of money you're gonna offset everything it's gonna be amazing utopia um and now they're just rugging everybody who had solar panels in california their their buyback rates are pennies on the dollar and it's like cool now everyone's mad about the solar system it doesn't detract from its utility but it's like i'm not getting paid back from the grid but you sold me i was going to so let me find this other monetization route and so it'll be interesting

to see as these develop not only as hash rate heating systems but solar auxiliaries and pairing in that way that gave me one last thought here too which is i'm glad you brought that up dylan solar as well combined energy systems smart energy redundancy all these things right fancy smart control brains this to me says like tesla power wall tesla solar product ecosystem so after bitcoin or that's who i view the next target market is it's these people that are already spending money and want the cool tech right maybe they're not as they're not bitcoin maxis but they want the tech and they they understand the technological importance and the value add i think they will be the next target before we scale into like mass consumerism offsetting

everyone's costs you know cheap machines cheap products to target the masses i think that's the last one to solve yeah i mean the data is here at 3.3 x multiplier on the solar is pretty insane yeah yeah i mean if you compare it at the unit level it's like one cent versus 3.3 cents but still that is that multiple exists and it's there and so that would occur regardless the size of your system and it's working it's working well for this customer uh i know we're developing still on getting it's kind of like a pid control so you have dynamic step down of the minor power limit and so the wattage kind of traces your surplus going back to the grid and so with home assist you have all these inputs you know what you're generating what you're sending to the grid what

you're consuming from the grid and my goal is to get the net export of any solar system as close to zero without going over as possible which is hard because minor firmware lags you can say cool go 3 000 watts and say all right give me half an hour to get tuned up and get actually to that wattage level um and then shoot there's another thing uh and then having the system also react to oh you turned on the air conditioning oh you turn on this your washing machine's going and having the miner react to just the whole home system's power generation and just kind of be the that last buyer of energy before going back to the grid i want to add a comment here though which is so cool shout out to the clankers um home assistant the open source smart home building

brain software we use we think of it like an aggregator you can connect ring google nest whatever we just built the add-ons to like add miners with all your other iot devices blinds lights etc there's an mcp connection i was on claude i gave it a draft of this playbook and i had the home assistant set up at my house and there's these different examples we give of like what you might want to control for solar monetization offsetting heating right i was like read this playbook look at all the sensors at my house find the bitcoin miner build all these automations i want to do case three i want to do maximize sats i want to do cheapest btu right we labeled these nice um and clear in the report and with ai tools like the barrier to entry is

as low as ever i don't think we can overstate that that point right there again going back to the opportunity i mean bitcoin has been talking about this opportunity forever but like with the ai tools and iot open source projects like uh like the ones you guys are building on it's like it on once you get the hardware and you get everything rigged up actually running it is going to be less intellectually and it's going to take less intellectual capital than people perceive especially if you have the clanker set up i mean And that does preclude sort of dual adoption of clankers and this infrastructure at the same time.

But I think we can all agree that adoption curve is going to be up and to the right for the foreseeable future. So I think what you guys are doing, like doing the hard work to set up all this infrastructure and figuring out the sizing is like doing it now and getting in on the ground floor is we're seeing this adoption wave of AI. And as this sort of mega miner apocalypse is happening, the timing can be more perfect to begin implementing this across the country.

Yeah, it's doable. It's doable. It's challenging, mostly because the miners don't like behaving like IoT devices. But I agree with you. I think it's worth figuring out these barriers right now, right? Why wait? and and we know there's lots of open source mining developments just kind of solve those technical problems and then in the same vein to sizing it's like these what are this is what i

would categorize as not technical problems these are like people problems and education problems right um so there's these two veins yeah so i mean let's get into like the mega miner apocalypse what what do you what do you how do you see foresee this playing out like it seems pretty clear to me that just on grid hyperscale monetization of electricity in the world of compute uh ai compute it's gonna be bitcoin mining on grid 10 times out of 10 yeah what did what did brad cuddy say at thames they're they're like 60 x yeah yeah dollars per megawatt hour um it's wild bitcoin mining people always talk about how it's the apex predator it's ruthlessly competitive it always is going to find like this lower energy state that's my engineer brain

thinking um meaning it's always going to like settle to the cheapest power the the cheapest operation right i'll say that i won't say cheapest power i'll say cheapest operation the reason i make that distinction is like what's the best mining operation well the best mining operation is one that's not seeking profitability right that's the bid x on your desk okay and so if there's a mining operation that's not seeking profitability, that could be subsidizing your heat load, right? Or that could just be running off the excess solar or turning on when it is profitable in those brief moments. So the building integrated mining, I think, is a future case for a lot of hash rate that will survive for the long run because it's a sunk cost mentality. I'm going

to do it anyways. I'm not going to shut off the heat load. I want to be warm, right? I'm not going stop the sun from shining if there's excess power right and i'm not in control of hash price so if it rips maybe my system at my house is going to be profitable um and this is just something that the large on-grid miners they don't have that luxury because they're not connected to this combined energy system they're seeking this one path right which is i have to run my operation my electric costs my operating costs have to be cheaper than the bitcoin profit um that that this operation produces and that's kind of as we've seen um becoming more challenging the machines are getting more efficient there are large mega miners like electron energy right that are long

mega mining on grid um so i want to make sure to shout them out but at the same time the ai space race is happening and um they're just paying way more and so for these large publicly traded companies it's their fiduciary responsibility to just pivot to that i mean we're constrained for compute i'll wrap and hand it to dylan by saying like i'm bullish on this for home mining i think mining has this interesting character arc story where it started on the nodes in the laptops and to the desktops and gpus and then it got more industrialized through network effects you know economies of scale and then now it's kind of at this choke point where it's going to come back home and settle back down to these low energy states but the challenge i see is if the large

miners aren't buying the 10,000 machines from bitmain that are designed for data centers then they're going to have to start selling systems that are better for these energy infrastructure applications right so solar heating profitability controllability with smart home brains all these things it's a totally different class of product and so what i'm wondering is going to play out is like if no one's buying the slop from the mega mining manufacturers they're going to come to the smaller guys and then the smaller guys like us are going to say your shit sucks i don't want it and so that that's something i'm looking out for right now kind of a different take um the mega minor apocalypse is music to my ears like

whenever there's an announcement of over pivoting the ai it's like awesome hash value is going to go up for me never sure network hash rates going down difficulty goes down but that's awesome for me a home miner um i do think the future will be interesting as there's not billions of dollars in asic sales of these industrial miners as tyler was mentioning but for now in the interim you can run s21s 19s etc at home it's when you get into these three-phase systems that like it really you can't use that at home yeah the retrofitting won't last forever this is this s19 for 50 bucks like we're at the point now where bitmain isn't even releasing the s23 they're only releasing three-phase hydro miners pretty much right and no residential home in north america has three-phase

power so yeah but for the weirdos that want to retrofit now and strap them on it's like the best time you're like oh i've been waiting to buy this miner it's been expensive oh prices came way down on the miner bitcoin too um but now i have this affordable entry point so like right now probably i mean pricing will probably go down as more mega miners turn off but pricing looks great and approachable right now for a lot of people who want to get started on this but i do think the future will be interesting as the mega miner slop is not usable and either they have to pivot and provide better firmware and better hardware or open source initiatives take off

and enable people to build whatever form factor and whatever control they want on these systems to better integrate into your home or to your use case or whatever. If you had to wave the magic wand and produce a sort of supply chain for A6 in the future, what does it look like? I mean, yeah.

Instead of having desoldered chips off existing hashboards to build system, it's like, here's the real, here's how you control it. Have a great time playing with your Bitcoins. I think we need chips and we need an open source firmware that works on all of them akin to Linux, right? So this is Intel and AMD. That's what's minor in MicroBT. They both sell chips. Linux runs on both chips. You don't have to.

There are proprietary OSs like Mac OS and Windows. There can be proprietary firmwares with dev fees that offer fancy features or better tuning. But the bare bones minimum that we really need is to make the Bitcoin mining industry reflect the rest of the electronics industry, which is someone sells chips a la carte. And there is an open source, editable, inspectable, documented firmware to talk to those chips. Are we getting close to that? somebody working on that yes yeah shout out to ryan um one of our engineers at the 256 foundation he is the lead architect of mugina which is an open source firmware another shout out to ai um it turns out when you have open source firmware and you can ssh into miners that are

hacked together at best i'd say like there's really no such thing as closed source software nowadays it's basically intercepting the mining operations on aftermarket firmwares closed source firmwares and literally side loading an open source firmware in real time these are just a couple of ai prompts i mean obviously he is architecting it as an embedded systems full stack linux engineer but with the ai tools it's just become so much easier we've got Mugina running on S19s, a couple of different versions and images coming soon. So a file you can download. It runs on BidAxis.

It runs on some open source hardware that 256 Foundation is working on. But long story short is, yes, we're building towards that platform, Mugina. Dylan's actually pretty involved in the API architecture, right? I mean, it's cool. It's very early stages, but it's an opportunistic time to come in. There's dev calls for that as well. to get to voice your interest hey i'm trying to do this solar thing hey i'm trying to do this heating thing like i need the firmware to do x y and z and the beauty of it is these can be built

in a matter of minutes yeah i mean it's kind of wild to think that libra board that 256 is putting out can run mugina you can connect hash boards to it via usbc you can mix and match hash boards so maybe you have a dying s21 and a dying s19 you can plug any combination of those boards into libra board and then mugina is being designed to be able to you know programmatically dictate where the power is going through those boards does it prioritize efficiency does it prioritize you know equalizing it across all the boards let me turn two off and turn two on etc so being able to get in right now to voice how you think minor firmware control should be handled is super valuable and you can help steer the conversation as to like hey i like this on

this firmware i like this in this firmware i hate this hate this so let's add these and like disregard this and find a different system which is the beauty of open source you can just contribute it have a discussion around it and go back and forth on it yeah it's funny like when you connect all this stuff to Home Assistant and do what we're trying to do. And if you're reading this playbook or listening to this episode, you might be interested in doing this too. The thermostats behave like thermostats. The solar inverter behaves like a solar inverter. The furnace behaves like a furnace. The battery behaves like a battery, right? The miners don't behave well like heaters. And they don't behave well like solar dispatch loads. That's like the missing

piece. And it's just the pain point of where we're at in the industry. It's a bullish sign in the sense that we're early and we get to be alive for this um but there's a lot of technical work to be done on the firmware to dylan's technical points there how do you architect that if you request half power how does it do that does it shut off one of the two boards or does it just throttle them back which one gets you the most saps which one gets you the highest temperature it depends on what you're trying to do right um and then also the hardware itself uh that's something i just want to mention which is like eating appliances solar infrastructure this stuff's supposed to last 30 years right like i don't want the hash board to change shape you know i want it to be a standard

like hot swappable upgradable heating element that i know when i upgrade in eight years it's going to be the same shape and i don't have to overhaul the whole system we don't have that luxury because the miners kind of do change shape and it's whatever the manufacturers will is they don't sell the chips right so there's no company that said i'm going to keep them this shape um so all this is to say is like this is kind of the open source stack that we're watching closely and helping and advocates of with our time and energy to support the 256 foundation but my last comment here will be it's not just a benefit to the people trying to do these energy-based building integrated home mining building mining business mining systems

an open source stack is also beneficial when you're a publicly traded miner and you don't want a dev fee on your firmware or you want to you know investigate and audit share accounting right or you just want to make sure there's no back door from ant bleed right that can remotely shut off your machine so um all this is to say is like the linux back to that first point the linux firmware of the mining industry called mugina and then chip accessibility and some reference designs just so we can get like consistent form factors and some standards that's all really needed to help the whole industry completely agree and it's crazy like we're 17 years in and to your point earlier tyler about like mining going through this phase of like

cpu gpu fpga asic industrial scale now coming back i think it's um it's hard to predict exactly what the end form factor looks like but i have a feeling that the end form factor is going to be in something that is conducive for at-home mining and yes there may still be industrial scale to produce the ability to participate in demand response and there's going to be parts of the world where they don't build out ai data centers because they decide the u.s and china won the arms race for for ai so we're going to use our access power to buy bitcoin i still think they will have a place i think overall the arc of bitcoin mining history will be more distributed a variety of form factors and hopefully but i'm

pretty confident using mining as a way to to be a sort of collaborative part of a home brain to help with heating and taking advantage of periods where we're mining Bitcoin with your electricity is profitable. Yeah, I would just echo that by saying like, what's the end form factor of a computer processor or a GPU? There's laptop CPUs and GPUs, there's desktop CPUs and GPUs, there's data center CPUs and GPUs, right? And so I think that whole stack will exist at scale in Bitcoin mining.

You know, we're not here saying building integrated mining is the only answer. I still am a firm believer in monetizing stranded energy, right? Off grid mining, there's going to be the on grid mining that's cheap enough or subsidized by the state or whatever. There's going to be the gridless compute to the world, right? That are finding stranded energy literally and offering electricity to their community from the application of Bitcoin mining into those micro grids. But I think that what's very undervalued right now and at the same time people want to participate is this building integrated mining, you know, and it's kind of felt out of reach for a while because the machines are so industrial and you don't you don't really see one as a new coming newcomer to Bitcoin. So we're working to change that. Yeah. And so people listen to this, they download the playbook, the reading and what do they do next? What do they do next? Well, they can get started on our support page. We've documented everything as much as we can.

So you can totally do this yourself. Calculators are available and equations are available. You can take a stab at this and do it yourself. Also, you can contact us. We provide this as a service. We were happy to work with people because it's important for us to get this into as many homes and businesses as possible you have an advantage use it like at the top of the of the report here um it's important for us to not only like get people exposed to bitcoin mining but it

also is this trojan horse to decentralizing and hardening the network even further because it's way better in my opinion to have every home on this block mining bitcoin especially if they're either lottery mining themselves or building their own block templates doing pool mining whichever to not only decentralize it physically but also on the pool scale and so we're excited about other open source pools coming out but back to how you get started um contact us yeah you get started with your utility bills have your goal in mind of am i doing this for heating am i doing this for solar is sovereignty important to me um or some combination thereof and figure out what your current sunk cost is for your building and whether you're using losing value on the solar you're

selling back to the grid and from there you make the decision on how integrated do i want this to be do i want to tiptoe in with space heaters totally fine or do i go fully integrated and do i have this tied into my plumbing system from my boiler ducted into my furnace do i have a dry cooler so i can dump the heat outside during the summertime uh it really all goes back to what is your goal the good news if if anyone's listening yeah echo everything dylan said um if they already have a miner you know maybe it's got an aftermarket firmware like brains or lux os or some of the canaan miners chances are um we've been building out more of these shout out to brett rowan at upstream data by the way he is the tech wizard behind getting bitcoin miners to

respond to API calls in a cohesive, aggregated way to help us in Home Assistant. But a lot of this stuff is on Home Assistant already, meaning a miner you already have might be able to be controlled like a smart home device. And so to echo Dylan's point about tiptoeing, like get a $50 Raspberry Pi or buy one or install Home Assistant on Start9 040, right? Because now it's packaged for that or on your Umbral. And then download the integration. That's like the app store of Home Assistant, download the one that lets you connect to Bitcoin Miner. Home Assistant is pretty smart. It might automatically find your home thermostat or a smart switch or something. Watch a couple of YouTube videos, come to our office hours, read some of our documentation.

Then you can start to toy around with controlling a miner like a smart building device with your building brain. You can connect your cloud or open AI account to Home Assistant with their MCP connector and then you can start just asking your ai to build the smart control and that's where you really get more confident to say okay maybe i do need to chat with these guys or help figure out the sizing myself for how many i really need to optimize this and then you know i'm going to cut it into the duct and i'm going to install a damper or a valve or a pump that can control things and all that connects to home assistant you tell your ai it then starts to build out the automation flow from there so that's kind of how we grew into this over time that was our natural path and um

i know it can be a little intimidating but all the tools are available to do it today yeah and the uh the one thing we forgot to cover but i think we can cover real quickly is like there's a bunch of people like all right like how do i actually get the bitcoin like what happens when you put the miner in like um you point at a pool like how like we're producing this bitcoin and miner's running i could see it but like how do i how do i get the bitcoin we hosted an event here at the space and someone asked okay so how do i get the bitcoin out of the miner and like it just has stuck in my head forever you're like no it's stuck in the hot tub forever the files are in the computer um and so uh i think maybe we mentioned this maybe we didn't a lot of this report is

based on pooled mining and so i don't advocate for this you can do pooled mining the fpps you you shouldn't do that in my opinion but that's another conversation of another day um i'm a big advocate of ocean i like being able to build my own block template i accept the fact that they are the coordinator of the payouts i'm fine with that trade-off um so on ocean you can put in your own bitcoin address and you will get paid out there intermittently if you don't have a lot of hash rate it's going to take a long time to do it on chain i think the minimum is like a million sats uh or you can if you have a core lightning node or coinos they offer the ability to hook up your lightning address with a bolt 12 offer to your ocean account and you'll get

lightning payouts and then sats are in your pocket wherever you access that lightning account and you can spend it immediately or you can send it to cold storage totally up to you this is the best part my favorite part about home mining is that it beats the hell out of credit card rewards or airline miles or what have you because your subsidy that you get back for running infrastructure in your home is immediately spendable once it's in your pocket and so whichever route that takes or recent straight to cold storage and don't worry about it ever again um very trivial to set up i want to give a shout out to as i've learned more recently about peterpool v2 more protocol this is a little nerdy but this notion of you know we're like one of the biggest advocates of

physical decentralization decentralization of hash rate right it's like we're putting them in buildings you know everybody's got building um a lot of people have buildings but on the digital decentralization you know it kind of was a trope for me before because i didn't fully understand it but you know it doesn't really do anything if you just point to an fpps pool and so how do you solve for that there are different pools like ocean which have um let you construct your own block templates or strategy too but then there's also pretty cool protocol proposals for a decentralized pool altogether meaning a company an entity doesn't control it it is the pool is a protocol with a share chain and so that's a tech a really hard technical problem that i was talking

to matt carlo about and junglee who's one of our engineers at the 256 foundation that we're working on as well um but i'm really excited about stuff like that to come in the future as well because i i do view like my long-term bullish view on bitcoin mining is you're going to plug in a gadget into your house you don't even have to know how it works it's going to pay you money it's going to monetize your solar it's going to offset your heating costs and it's going to just do this programmatically at a protocol layer and it's going to fully decentralize physically and digitally the bitcoin network and we have this massive interconnected web across the globe of these little machines that are building infrastructure that are final settlement for

the base layer of the monetary system it's crazy to think about yeah they're enabling peer-to-peer digital cash and at a time when it's desperately needed yeah gentlemen it's been a pleasure working with you i mean you guys have missed the work um but it's been uh it's been fun on this for the last three weeks. Yeah, I appreciate it. I'm really excited to see what the audience thinks of it. I know that, you know,

people are pretty hungry for home mining. There's always a lot of chatter online when they see a new gadget come out. And I think it'll be cool to really get the playbook out there to say, you know, this is kind of our way of thinking about like how much home mining

can you get away with to your benefit? Like you want the most bang for your buck. This is how to do it. So thank you, Marty. Yeah, thank you, Marty. word of warning to the listeners stacking hash rate is more addictive than stacking sets I can co-sign that

it is masochistic but it's addicting I think your application makes it less masochistic this is not the end of this for us you got the playbook, you've listened to this episode if you're at the tftc roundtable we are going to have sort of a one-off call um i believe july 14th that night hope you guys are available um because that's what we've said it internally i just told you that live on air business on air okay um but yeah we have the tftc roundtable now and so if you like this if you want to learn more dylan tyler and myself will be meeting like a closed

zoom group where we can expand on this conversation you guys can ask questions we go a little deeper so sign up for the TFTC roundtable if you want to join that and gentlemen I think this is great I hope if you're listening you learn more you become more confident and if so reach out to Tyler and Dylan certainly try to do it by yourself

but I'm a big don't reinvent the wheel guy speed up the learning curve by talking to these two thank you sir we'll see you july 14th peace and love thank you for listening to this episode of tftc if you've made it this far i imagine you got some value out of the episode

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