Bitcoin mining & Electricity Surplus Crisis

The problem of redistribution of electricity in the context of the global financial crisis

The threat of the global financial crisis has been written and discussed for several years in a row in world famous economic journals and at international economic forums. In 2017 – 1019, world-famous economists predicted the onset of the global economic crisis in the period from 2020 to 2022, which will exceed the global financial crisis of 2008 and will be larger than the recession of the 30s of the twentieth century.

We recommend you to find articles of relevant economic forecasts in the period 2017 – 2019, regarding the onset of the global financial crisis, in order to make sure that the global financial crisis is not an accident caused by force majeure.

In 2020 (late 2019), humanity was suddenly attacked by a terrible infectious disease called SARS-CoV2 coronavirus, which causes pneumonia, often with a fatal complication of COVID-19.

The governments of some states, “taking care of the lives of citizens”, make an unprecedented decision, namely, they introduce strict quarantine measures; by their orders, governments actually stop the work of enterprises, small and medium-sized businesses. The global economy is entering a state of crisis, paralyzed by government intervention. World media write about the onset of the global financial crisis, naming coronavirus the cause of it. Or maybe the regulator’s intervention in the economy and the forced introduction of quarantine measures led to the global financial crisis, and not coronavirus? This question is worth considering.

Strict quarantine measures and business shutdowns caused significant reduction in electricity consumption. Power plants produce electricity, but there is no one to sell it to.

A surplus of electricity appears

When engineers develop a power plant project, they initially lay more power than is currently required by the region of the country that will supply the future power plant with electricity. The large capacity of the power plant is designed taking into account the growth of the economy, production, development of electric networks in the next several decades. Therefore, after putting into operation, the power plant does not fully utilize its inherent capability. Part of the power plant’s capacity is in standby mode, but still requires money spendings for maintenance.

Standby capacities and additional maintenance costs are taken into account in the cost of electricity generated.

Now imagine that the power plant is not operating at full capacity, and with the onset of the financial crisis, electricity consumption is reduced. The power plant is forced to turn off excess power. But these extra capacities need to be serviced, maintained in good condition.

In conditions of the surplus of electricity, the cost of electricity will increase, which will lead to an increase in electricity tariffs for the population.

As a result, it may happen that the maintenance of modern-type power plants (for example, powerful nuclear power plants) becomes unprofitable.

Conclusion: The problem of the redistribution of electricity lies in the partial load of the capacity of power plants, which increases the cost of electricity for the buyer.

Solving the problem of redistribution of electricity in the context of the global financial crisis and ways to increase the profitability of power plants

Is it possible to solve the problem of redistribution of electricity and load power plants at full capacity, thereby reducing the cost of electricity for buyers and increasing the income of the electricity producer?

An unequivocal solution to the problem is energy consumption.

However, the question arises, who will consume and pay for excess electricity, if it is excessive?

The answer is quite simple: Bitcoin mining

It is advisable to use the excess electricity of the unused capacity of power plants for Bitcoin mining.

Bitcoin mining uses electrical energy to run processors that perform mathematical calculations. When using computing power, and therefore electricity, the miner receives a reward in Bitcoin coins, which are essentially money. Received bitcoins can be stored as money, paid for the maintenance of power generating capacities of power plants, or exchanged for other money.

Using bitcoin mining, electricity is actually resold with profit.

Conclusion: Using Bitcoin Mining to load unused capacity of power plants solves the problem of electricity redistribution both in a circumstances of developing economy and of a financial crisis, and it is beneficial for all participants in the free energy market.

Ways to implement the use of Bitcoin mining to solve the problem of electricity redistribution of power plants

  • Centralized (the organization and implementation of the project is carried out by the state centrally);
  • Decentralized (organization and implementation of the project is carried out by citizens decentrally).

Centralized way to use Bitcoin mining to solve the problem of electricity redistribution

On May 5, 2020, a document was published on the network, the current Minister of Energy and the Environment Protection, Olga Buslavets, instructs the Director of the Development of Nuclear Energy and Nuclear Industry of the National Atomic Energy Agency Energoatom to work out a possible cryptocurrency mining project in order to find additional markets for electricity generated by nuclear power plants.

Later, the Ministry of Energy explained that they are considering the creation of data processing centers (DPC) in the close vicinity of nuclear power plants (that is, centrally). A pilot project was developed at “Energoatom” assuming the connecting data centers with a capacity of up to 1000 MW to electric networks, with the allocation of 30 MW in the satellite city of Zaporizhzhya NPP Energodar. The project provides the creation of a new ZNPP infrastructure for long-term supply of electricity and meeting the needs of data centers.

The problems of centralized implementation of the project are in several issues:

  1. Who will pay for the implementation of the project? State, from taxpayer money, or with printed money?
  2. How transparent the implementation of the project and recording reports of spent funds will be? Everyone understands how officials of all ranks earn money on government projects.
  3. Who will receive mining income and will there be a reduction in electricity tariffs for the population?

Also the question of the use of thermal energy released during the Mining process appears – will this thermal energy be accumulated and for what needs?

There are still many questions for the centralized implementation of the project from the state, because there is no trust in officials, their activities, as a rule, are not transparent and inefficient.

Decentralized way to use Bitcoin mining to solve the problem of electricity redistribution

Along with the offer of a centralized way to use Bitcoin mining from officials, a decentralized version was proposed by Oles Slobodenyuk (the owner of Hotmine, since 2013 he has been developing equipment and infrastructure projects for Bitcoin mining).

The main points of implementation of a decentralized way of using Bitcoin mining to solve the problem of electricity redistribution that Oles Slobodenyuk offers are the following:

  1. Openness and publicity in the process of project implementation;
  2. Project accessibility for domestic and foreign investors. At the same time, investments in the project, and, accordingly, profits from the implementation of the project, will be available to citizens with various incomes;
  3. Decentralized installation of mining equipment throughout Ukraine, as well as the creation of private mining hubs with the possibility of attracting investments from any citizen of Ukraine.

How to implement a decentralized project to solve the problem of electricity redistribution?

It should be noted that Oles Slobodenyuk is a professional in matters of cryptocurrency mining and the creation of mining equipment useful for society; has a team of development engineers, as well as vast experience in this field.

For example, Hotmine since 2013 has been developing not just Miners for Bitcoin Mining, but Miners using excess heat to heat houses. In 2019, a “500 Watt Smart Convector Heater Silent Miner” was developed and tested on Bitfury chips.

In October 2019, the development of a control center/system began, which, depending on the needs of power plants, is able to control user mining devices remotely, in order to quickly increase/decrease the load on the power grid, and thus regulate peak loads on the power grid, making a profit in bitcoins.

That is, from a technical point of view, the project implementation process has already begun.

For the implementation of the project, communication with the state and officials is very important. Unfortunately, in Ukraine this is a problem that requires the help of society.

In January 2020, was made a decision to promote the project with the help of the community united in the Free Energy Market Association.

Members of the association are Miners, investors, owners of mining hubs, owners of smart heaters that use Bitcoin mining to heat their houses, potential Miners.

The purpose of the Free Energy Market Association:

  • associations of interested parties;
  • communication with the state and owners of power plants, protecting the interests of members of the association;
  • technical implementation of the solution for the electricity redistribution problem.

Advantages of membership in the Free Energy Market Association:

  • Since the members of the association representing union of Miners and, therefore, owners of mining capacities, they are structural elements of a decentralized system of electricity redistribution, which means they will receive electricity for mining at a lower rate than ordinary users;
  • Legal assistance in cases related to the purchase / sale of mining equipment, customs clearance, assistance in solving problems with customs officers and other structures;
  • Discount for products Hotmine and others.

Currently, legal registration of the Free Energy Market Association is in progress. If you are a Bitcoin miner, use smart heaters from Hotmine to heat the premises, or you are just interested in mining, questions of using mining for heating residential, industrial, greenhouse and other types of premises, with the benefit for all and benefit for yourself, join the membership in the Free Energy Market Association!

Leave your email address in the form below. In the process of creating the Free Energy Market Association, you will get an email with detailed instructions on membership in the Association:

Email Submission Form

If you have any questions, suggestions, join the telegram chat, ask, suggest, take part in discussions:


Bitcoin mining & Electricity Surplus Crisis обновлено: May 20, 2020 автором: SchBit