I went to Bitcoin Lake in Guatemala | Contribution 2


The coolest mining facility in the world

In my previous article,Bitcoin Lakeis one of the demonstration experiments of the Bitcoin circular economy that have been launched one after another around the world inspired by the Bitcoin beach in El Salvador, and that these demonstration experiments have four common goals. bottom.

When compared with a number of demonstration experimentsFeatures of Bitcoin Laketo one ofentrepreneurshipis mentioned.Panajachel, the activity base, has a relatively low temperature and humidity.The alpine climate of everlasting spring is suitable for mining.As a result, the first business venture was decided to be mining.

already,Mining using wastecommercialization is progressing, and in August, as a proof-of-concept prototype,Operation of micro mining facilityI was allowed to.After identifying issues, accumulating know-how, and assessing profitability,Modularized and scaled not only in Guatemala, but throughout Central and South AmericaThe goal is to

It is also a by-product of miningAnother business that utilizes waste heatConsideration has also begun, and the site is as enthusiastic and lively as a startup in the early days. Unlike Bitcoin Beach, which started with huge donations from anonymous Bitcoiners, the operator himself invests his own money,The continuation of the project is premised on securing profitsbecomes.

The reason why I became interested in Bitcoin Lake in the first place was a video of this micromining facility that I happened to see on Twitter.

The antithesis to the theory that mining is bad for the environment

Before we dive into the details of Bitcoin Lake’s micromining facility, let’s review mining in general.

2021, a turning point for mining

Due to the tightening of mining regulations by the Chinese government in 2021, miners moved to Texas in the United States.Bitcoin mining has entered a new era. The main energy sources consumed in mining have shifted from hydropower and fossil fuels in China to solar, wind and natural gas in Texas.

Behind this was the problem of surplus electricity caused by the supply-demand gap peculiar to natural energy, and the problem of natural gas, which had to be flared as a by-product of crude oil extraction. These two problems, i.e.Mining is the solution for effective utilization of energy that is lost without being usedam.

Mining, which has been criticized for having a high environmental impact, is actually promoting the spread of natural energy, and mining, which was said to “use up all the energy on earth by 2020” (Newsweek 2017/12/11), uses The paradox of resources destined to be wasted in the first place was interesting, and my interest in mining was aroused at once. Please refer to the comments and considerations below for details about this area.

“Bitcoin is transforming into decarbonization, lower renewable energy prices are a tailwind” (Nihon Keizai Shimbun)

“Mining in a Revolutionary Era” (Bitcoin Research Institute)

“The front line of Bitcoin mining to understand from data” (Bitcoin review meeting)

The next hope for renewable energy and flare gas is “garbage”

New trends in mining for 2022one of the “rubbish“was. In August, Vespene, an American startup that uses methane gas generated in landfills for mining, raised $4.3 million (for more on Vespene, see Kishin Kato’s article “Mining in Garbage Mountains?”). .

Mining at Bitcoin Lake also utilizes “garbage” as an energy resourcedoing. However, it wasn’t that “garbage” was the starting point from the beginning, and when the project was launched in January 2022, it seems that the use of natural energy was assumed. However, it was stuck due to the size of the initial investment.

Bitcoin Lake’s “garbage” problem

At such times,Actual state of waste treatment in PanajachelIt seems that I found out by chance. A $300,000 (approximately 40 million yen) bio-digester (a facility that decomposes waste and converts it into reusable water and biogas) was abandoned near completion, and recyclable waste was collected from residents. It seems that the collected garbage was dumped in the mountains without being recycled.

I actually visited the site. I asked them obvious questions, such as why they didn’t complete and use the facility that they invested 40 million yen in, and why they bothered to collect it as recyclable waste even though they didn’t want to recycle it, but there was no clear answer.Corruption, embezzlement and a lack of long-term perspective often derail and abandon plans… apparently …

The workers who took out the collected garbage from the truck and threw it into a huge hole, grabbed the garbage with their bare hands without gloves and worked without a mask in the dusty dust.

Author’s offer: A bio-digester that has never been in operation (left), garbage being transported to a mountain and dumped by a “recyclable waste collection vehicle” (right)

Toxic substances oozing out of garbage that is dumped without proper treatment pollutes the soil, mixes with groundwater, and flows into the “world’s most beautiful lake.”The town that is eaten by the tourism industry is the seed of riceDestroy the value of tourism resourcesI’m doing it.

Mining with waste oil

It seems that the direction of the mining business was decided by chance to know the actual situation of waste disposal. ”Waste-to-Energy-to-Bitcoin”, “wasteenergyto bitcoinWith the theme of upcycling, we chose waste oil as the energy resource for the first phase proof of concept.

in particular,Used cooking oil collected from restaurantsam. Traditionally, used cooking oil was sprinkled on streets and backyards and washed into Lake Atitlan with rainwater.

For restaurants, it is garbage, and it seems that the offer to pick it up was welcomed because it saves the trouble of throwing it away.In this way, the electricity that drives the miner is createdSecure energy resources for freeI made it.

By choosing waste as energy, other resourcesAiming for “Zero Waste” by maximizing the use of waste materialsThat’s what I thought.

Below is a list of the main materials that Bitcoin Lake assembled to build its micromining facility.

  • 2 ASICs (used S9 and S17s)
  • Diesel engine (used for 40 years)
  • car battery (used)
  • Electric heater for warming waste oil (used)
  • Waste oil filtration device (worn cloth and bucket)
  • Steel shelf (used)
  • 220v power strip
  • Internet line

Birth of Kaboom Energy, Guatemala’s first mining facility

The Bitcoin Lake mining business thus launched was named Kaboom Energy. Kaboom is the explosive sound of boom, boom, and dong, and I guess that it was put on the explosion of mining.

Bitcoin Lake Community LeaderEliazarAs you can see in the demo video by , the mining procedure is very primitive, nay, simple.

    1. Heat the waste oil for 10 minutes
    2. Filtration of hot waste oil to remove impurities

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    1. Pouring filtered waste oil into a diesel engine
    2. Drive the diesel engine to charge the car battery
    3. Running ASICs on car batteries

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When you pour waste oil and drive the engine to charge the car battery, the miner will start working. was coming.)

Through mining, Bitcoin Lake has found a solution to the environmental problem of pollution of the regional treasure Lake Atitlan due to improper waste disposal. It turned polluting waste into energy and then upcycled it into a healthy currency called Bitcoin.

Although still in the proof-of-concept stage,Encouraging the effective use of waste and scrap materials by linking them with the economic incentive of BitcoinThe trial can be the antithesis of the theory that Bitcoin is bad for the environment, similar to the narrative that Bitcoin mining will promote the spread of renewable energy, which is attracting attention in 2021 and empirical data is being accumulated. .

Antithesis to the mining industry where large-scale capital intensiveness is accelerating

Kaboom Energy alsoChallenge the common sense of the conventional mining businessYou can also think of it as

It is believed that the mining business must operate 24 hours a day, 365 days a year, with a huge number of the latest ASICs lined up tightly in an air-conditioned clean room. Economies of scale are critical due to low margins and intense competition.

The larger the scale, the better the price negotiations with electric power companies, but the initial investment for ASIC procurement and data center construction will also increase, and the labor costs to maintain uptime after operation will increase. Efficiency is paramount to shortening the payback period.

Mining is a volatile business that is greatly influenced by the market environmentam.Sudden death due to improper cash management2022 proved that it is a high-risk business, with Core Scientific, which boasted the largest market capitalization in the industry, being forced to file for bankruptcy.

Moreover,Geographic concentration in North America, especially in Texas, concentration in large listed companiesSome see trends as a risk to the Bitcoin network.

Kaboom Energy could be a game changer in the current mining industry.Low-budget micro-facilities made from scrap materials run cheap or free out-of-the-box ASICs on electricity generated from free energy.new choicewas shown.Low risk low return modelwill lower the mining entry barrier and contribute to decentralization.

The sight of thousands of ASICs roaring in a gigantic data center is spectacular, but the sight of several ASICs roaring in a nearly exposed backyard is also refreshing. Unlike inorganic large facilities, Kaboom’s micromining facilities have a human touch.

Some people may say that such a thing is unnecessary, but I personally felt the possibility. A figure that challenges without being bound by common sensethe world’s most badass minig”“Coolest mining in the worldThere are many Bitcoiners who comment that. We are looking forward to expanding the Kaboom model not only in Guatemala, but also in other Latin American countries.

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Contributor:Teruko NerikiTeruko Neriki

Belongs to VC Fruguru Ventures, which specializes in investing in Bitcoin and Lightning-related startups. “Bitcoin Standard”, “Bitcoin: Why You Can’t Be Bullish”, “Bitcoin’s Way of Walking” translated and published. You can read more about the Bitcoin Institute here.

The post I went to Bitcoin Lake in Guatemala | Contribution 2 appeared first on Our Bitcoin News.


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