Bitcoin Home Mining Playbook with Exergy
Transcript — TFTC
Article: https://www.tftc.io/bitcoin-home-mining-playbook-exergy
Transcript page: https://www.tftc.io/bitcoin-home-mining-playbook-exergy-transcript
Published: 2026-08-05
Machine transcription, lightly cleaned; may contain errors.
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[0:01] Marty Bent: Gentlemen, here we are.

[0:03] Tyler: Yeah. Good morning.

[0:06] Marty Bent: Dylan, welcome to the show. This is your first time on Tyler. This is your second.

[0:09] Tyler: Yeah, this is I'm a longtime first time, so this is really exciting for me.

[0:13] Marty Bent: Well, it's exciting for me too, because we've been doing some work together behind the scenes, putting together a playbook for mining at home. And I think 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 gonna learn if they listen to this whole episode?

[0:40] Tyler: That mining at home, mining in your business is useful and can add value to your business. Yeah, I think a lot of people are wondering what's gonna 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.

[1:11] Marty Bent: Yeah. And I mean Tyler, you've been on the show before, but many people who are listening now may have missed it because our audience is growing like exponentially since you were last on over a year ago. So there's a bunch of new freaks here. but just to set the tone on authority, what gives you guys the authority to write this this particular playbook?

[1:20] Tyler: Nice. 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. 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 mention there, Marty. really focused on how we can integrate Bitcoin miners into heating systems, electric heat that pays. People have seen the retrofitted space heaters, the hack together pr 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, et cetera.

[3:35] Tyler: running these in your home and not necessarily being profitable, but being cost effective relative to your 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 we're 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.

[4:05] Marty Bent: Awesome. And so I mean just jumping right into it. I mean the first section of the playbook is is laying out the case that you have an advantage and you have to use it. And so diving into what that advantage is compared to maybe industrial minority.

[4:23] Tyler: Yeah, if you think of a mining operation, the first thing that comes to mind is, okay, I need to 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-grid electrical rates, even for some commercial rates, and extremely hard for residential customers that have higher expensive electricity rates, time of use base pricing, all these things. In addition to like the noise and the all the challenges there, do I have the right power outlet? our argument for You have an advantage, use it as buildings have sunk costs. Almost all buildings on earth are heated.

[6:08] Marty Bent: So I I mean I think this is why we put the playbook together. There's a ton of people, myself included, have been like, I would love to do this. Like just 'cause not only being a Bitcoiner it's very cypherpunk and the the whole idea that you can subsidize part of your heating cost with Bitcoin miners while stacking SATS in a non com KYC fashion, is 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?

[6:56] Tyler: You wanna talk Dylan on the different heating fuels? 'Cause 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 wanna 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. 'Cause 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 can they run at different efficiencies and deliver different BTUs per unit of volume. and so what we do is we can convert a BTU into give my units straight into a kilowatt, right? 'Cause it's

[8:03] Marty Bent: Well let's let's back up for for any of the ignorant a B two is a British thermal unit, which is

[8:07] Tyler: Right. Yeah. So that's like the the the the common term in the heating industry, right? Because we're 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. and so what Dylan's talking about here is like we convert the BTUs to an equivalent kilowatt hour price. So 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?

[10:31] Tyler: 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 machine's online more. It it's really just how what percentage of the day is it running, right? That same thing applies to the heating industry. It's 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? It's a duty cycle. You actually want a longer duty cycle. What that means is a longer heating season. It means it's colder, not just cold one day of the year, but like cold for months.

[11:21] Marty Bent: Mm. Yeah. Is it

[11:23] Tyler: Again, this is this is just for the heating use case. We've got a few others to discuss.

[11:28] Marty Bent: 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. solar like bringing solar into this and you talk about like the third league, profitable mining on your utility rate, like so bringing in like the sort of 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.

[12:01] Tyler: Yeah, so We l we live in the United States. We have relative to the rest of the world very abundant energy. We are fortunate enough to have natural gas piped throughout all of our cities. Which is a bad it's just 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 commit 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.

[13:58] Tyler: So what we're arguing here with solar is instead of sending that excess solar to the grid, flow 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.

[15:33] Tyler: Yeah, you're muted. You're muted, Marty.

[15:43] Marty Bent: My bad. I was saying should should we jump into the data or should we dive deeper into the industrial use case? Like yes, you we're doing the analysis of the the energy sources and the three different leaks and the the sort of three scenarios I'm gonna set yourself up for where it's actually cheaper heat with mining. you have excess solar, so it's profitable to instead of sell that back to the grid, sell that to the Bitcoin network or holy grail,

[16:02] Tyler: Yeah.

[16:12] Marty Bent: the the price of Bitcoin's ripping difficulties relatively low in 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 do each different thing heat, sell to the Bitcoin network instead of the grid and just mine Bitcoin 'cause it's profitable.

[16:39] Tyler: Mm-hmm.

[16:40] Marty Bent: 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 like actually setting this up? Like what do they need to replace? What what does it look like there?

[16:57] Tyler: 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 a larger duty cycle or what the miners would call an uptime, right? They just need more of it, maybe more of it for longer. they also have these intelligent building management systems, right? You know, 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 well poised to benefit.

[19:18] Tyler: the 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 I rip out my boiler? Do I put in a miner? No, we we add the miner 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 RAV four has got a tiny little electric battery with a tiny little electric motor that can go twenty miles, but the way it transitions between gas and electric, it's like this fine dance.

[21:41] Marty Bent: Yeah, and I think one of the needles we need to thread or ties we need to knot here is I mean we're talking about this, like you can do the combined cycle of your furnace and the Bitcoin mining and like the the building will figure it out. But I think 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?

[22:17] Tyler: 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 day, it's all just like dollars per unit of energy, dollars per kilowatt hour. Heat is energy, electricity is energy, right? 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. maybe it costs you. 10 cents a kilowatt hour, right? maybe your your propane heat, this is how we think, we will convert that dollar per gallon to an equivalent dollar per kilowatt hour.

[24:36] Tyler: 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, cause he wants those sets. 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.

[24:55] Marty Bent: Mm-hmm.

[25:16] Tyler: You can stack 10% more in hash value. Fucking units. and you don't need the heat, but it's like, I want the sats and I have the energy. Let's go for it. Yes. Well, it's kind of like the opposite of these utilities sending people letters saying like, do not consume too much energy, peasant. Like

[25:31] Marty Bent: Yeah, because the infra well not only that, yeah, the miners, the infrastructure in place to take advantage of it.

[25:43] Tyler: Turn down your AC and we're the opposite. We tell our customers to crank those motherfuckers and get the bit.

[25:48] Marty Bent: Mm-hmm. Well that I mean, and this gets to an important pie 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 I conceptually you I think you've described it well, like r runs the calculus of what makes the most sense to do at any particular point in time based off of the cost and the profitability, the cost of the the inputs and whether it's the fuel source or the electricity and the the profitability of the mining. At any given point in but like how does that company that or excuse me that home brain or that that building brain work?

[26:26] Tyler: 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. 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.

[28:50] Tyler: Here's the current effective cost of heat. Maybe that's cheaper than gas. Maybe it's not. All it's to say is like we 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 assistance. That's the software we use that we build our software in. He offers office hours every week.

[31:06] Tyler: Maybe you just start with like an Avalon Mini 3 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 has minor or one of the extra G integrations for home assistant that lets you pair home assistant with the miner. Now you have full control and you can add a like a A digital thermostat you can control on your phone. And now you have full control at home. Miner reacts to the temperature sensors and the thermostat. And depending how loud it is and whether your wife is home or not.

[32:52] Tyler: You muted.

[32:56] Marty Bent: sorry, there's the my neighbors have the landscapers here, so I've been muting so we don't get background noise. But Dylan, you I mean you touched on I think the the best place to go from here is to really dig into hardware selection. Like what's the right minor for for particular jobs. And I think that's you know like th there's so many variables and inputs to making these decisions and obviously the hardware selection is is one of the biggest ones considering the the upfront costs. So how do you guys think about that?

[33:14] Tyler: Yeah. So I mean, 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 to 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 the step one in determining which machine you need to integrate. For lot of people, like I mentioned, it's scary to start or hire electricians or start ducting into your infrastructure of your house. So start with a space heater. That's easy. very modular controlled. So you can start with small rooms or stack a couple, whatever.

[35:47] Tyler: 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, your heating application, are you heating water or air, right? That's a big one. we should also say contr control. Right. Control absolutely 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 are Chinese manufacturers with closed source firmware.

[36:51] Marty Bent: Yeah. And I I think that's the most in 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's most important and 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 month in month out of my power bill.

[37:11] Tyler: Yeah, we're working on some some more tools to put on our 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. just like what does propane heat cost compared to a Bitcoin heat, right? And it 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. 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.

[37:46] Marty Bent: You know, pulled this up, I feel like this is pertinent to it's what we're discussing now, daily minor on hours versus gas on hours and basically it's highlighting the different cost across different timescales.

[37:59] Tyler: Yes. Yeah, Dylan, you want talk about that? Yeah, this was kind of our first install. this customer has an sixty-four and and how it works is it 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 ductwork 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.

[40:19] Tyler: 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. the sizing though, and I I mentioned this before we switched to 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 miner do I need? you know, we've found that most of the heating industry is sized based on your peak load. Same with solar, actually, right? and so this notion of not sizing for peak load, like this buddy system, this hybrid car approach, hybrid building, 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.

[41:05] Marty Bent: Yeah. Well I I wanna 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.

[41:16] Tyler: Yeah. Yeah, that's an output from our calculator at calc.xg heat dot com. And it pulls in you set your location and it pulls in the average cost for your state, or you can override it with your actual costs. And you say, I have a S nineteen or I have an sixty four, 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.

[41:56] Marty Bent: Yeah, and so with this it's a forty five percent savings on your heating bill.

[42:00] Tyler: Yeah. And so this customer in this snapshot, he already had electric heat. Yeah. 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.

[42:28] Marty Bent: Yeah. And how many we're just using one one minor here, it looks like, right?

[42:34] Tyler: This one is two S nineteens. Yeah.

[42:36] Marty Bent: Two S nineteen's. Yeah. And you can buy them what are they going for these days? Like fifty bucks and get them.

[42:41] Tyler: I mean depend it's like fifty to a hundred bucks like a vanilla S nineteen which is silly, but yeah.

[42:45] Marty Bent: Yeah. Yeah, it's it's it it is silly. that I mean that gets into we'll 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 is something that you brought up, Tyler, which is like the HVAC companies, they they don't understand this concept of the hybrid smart home.

[42:56] Tyler: Mm-hmm.

[43:15] Marty Bent: 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 'cause 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 it does make economic sense. But then W what do you think is like the critical tipping point to go from that niche heat punk audience that we have here at T F T C and that you guys have at Pod two fifty six to the broader public?

[43:57] Tyler: 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 it 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, 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 the themselves. I would categorize those as like the Bitcoin audience that's listening and loving the show.

[46:21] Tyler: 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's easy, the HVAC tech reads it, it goes, this mining system, smart home building control unit, is good for homes three thousand to four thousand square feet done. And like you don't have to make it any more complex than that. Does that make sense? I can't hear you, Marty.

[46:49] Marty Bent: sorry. It makes total sense. yeah, we're 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. and to help 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 and I think the timing is perfect considering What's happening for the industrial scale miners? Like I I feel like there's gonna be a flood of ASICs out of their hands and into and into the hands of individuals and smaller operators. But Dylan, it looks like you wanted to say something before we get into that.

[47:23] Tyler: absolutely. Yeah, and so like I I think pushing the needle on HVAC guys wanting to install this is definitely the right path to take. I I'd wanna like 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. and now they're just rugging everybody who had solar panels in California.

[49:32] Marty Bent: Yeah, I mean the data is here, a three point three X multiplier on the solar is pretty insane.

[49:39] Tyler: Yeah. Yeah. I mean if you compare it at the unit level, it's like one cent versus three point three 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. 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 assistant, you can have all these inputs. You know what you're generating, what you're sending to the grid, what you're consuming from the grid.

[52:03] Marty Bent: I I don't think we can overstate that that point right there. Again, going back to the opportunity. I mean Bitcoin's been talking about this opportunity forever, but like with the AI tools and IoT open source projects like like the ones you guys are building on. It's like i i it on once you get the hardware and you get everything rigged up, actually running it is gonna be less intellectually and it's gonna take less intellectual capital than than people perceive, especially if you have the clankers set up. I mean that does preclude sort of dual adoption of of clankers and this infrastructure at the same time, but I think I think we can all agree that that that adoption care is gonna 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

[52:44] Tyler: That's true. Yeah, yeah, it does.

[53:00] Marty Bent: like doing it now and getting in on the ground floors, we're seeing this adoption wave of AI and as this sort of mega minor apocalypse is happening, I g the the timing couldn't be more perfect to begin implementing this across the country.

[53:16] Tyler: Yeah, it's doable. it's doable. It's challenging mostly because the miners don't like behaving like IoT devices. but I I agree with you. Like I 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 are what are these is what I would categorize as not technical problems. These are like people problems and education problems, right? So there's these two veins.

[53:48] Marty Bent: Yeah. So I mean let's get into it, like the mega miner apocalypse. What what what do you what do you how do you see the foresee this playing out? Like it seems pretty clear to me that just on grid, hyperscale monetization of electricity in the world of compute, AI compute's gonna be Bitcoin mining on grid ten times out of ten.

[54:12] Tyler: Yeah, what did what did Brad Cuddy say at Thames? They're they're like 60x yeah dollars per megawatt hour. it's wild. Bitcoin mining, people always talk about how it's the apex predator, it's ruthlessly competitive, it always is gonna find like this lower energy state. That's my engineer brain thinking. meaning it's always gonna 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

[54:15] Marty Bent: Sixty X. Yeah.

[54:42] Tyler: What's the best mining operation? Well, the best mining operation is one that's not seeking profitability, right? That's the bid hex on your desk. Okay. And so if there's a mining operation that's not seeking profitability, that could be subsidizing your your heat load, right? Or that could just be running off the excess solar or or turning on when it is profitable in those brief moments. So the building integrated mining, I think, is a is a future case for a lot of hash rate that will survive for the long run. Because it's the sunk cost mentality. I'm going to do it anyways. I'm not going to shut off the heat load.

[56:59] Tyler: And so what I'm wondering is gonna play out is like if no one's buying the slop from the mega mining manufacturers, they're gonna come to the smaller guys and then the smaller guys like us are gonna say, Your 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. the mega miner apocalypse is music to my ears. Like whenever there's an announcement of, we're pivoting to AI, it's like awesome. Hash value is gonna go up for me. Yeah. Network sure network hash rate's going down, difficulty goes down, but that's awesome for me, a home miner.

[59:07] Tyler: on these systems to better integrate into your home or to your use case or whatever.

[59:12] Marty Bent: What if you had to wave the magic wand and produce a a sort of supply chain for A six in the future, what does it look like?

[59:25] Tyler: I mean, yeah. instead of having desolder chips off existing hashboards to build systems, like, here's the reel, 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 this is Intel and AMD. That's what's minor and micro BT. 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.

[1:00:21] Marty Bent: Are we getting close to that? Somebody working on that.

[1:00:23] Tyler: Yeah. Yes. Yeah. Shout out to Ryan, one of our engineers at the two five six foundation. He is the lead architect of Mogina, which is an open source firmware. Another shout out to AI. it turns out when you have a 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 sideloading 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.

[1:02:47] Tyler: Hey, I like this on this firmware, I like this on 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 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.

[1:04:54] Tyler: Or you want to, you know, investigate and audit share accounting, right? or you just want to make sure there's no backdoor from Antbleed, right? That can remotely shut off your machine. So all this is to say is like the Linux, back to that first point, the Linux firmware of the mining industry called Mogina, 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.

[1:05:26] Marty Bent: Completely agree. And it's crazy, like we're seventeen years in and to your point earlier, Tyler, about like mining going through this phase of like CPU, GPU, FPGA, ASIC, industrial scale, and now coming back. I think it's it's hard to predict exactly what the N form factor looks like and but I have a feeling that the N form factor is gonna 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 gonna be parts of the world where they don't build out AI data centers 'cause they decide the US and China won the the arms race for for AI, so gonna use our excess power to mine Bitcoin.

[1:06:46] Tyler: 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 gonna be the on-grid mining that's cheap enough or subsidized by the state or whatever. There's gonna be the gridless computes of the world, right? that are finding stranded energy literally and and offering electricity to their community from from the the application of Bitcoin mining into those microgrids.

[1:07:47] Marty Bent: Yeah. And so people listen to this, they download the playbook, they're reading it. What do they do next? What do they do next?

[1:07:56] Tyler: 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 the 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. 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.

[1:10:24] Tyler: 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 fifty dollar Raspberry Pi or buy one, or s install Home Assistant on Start9040, right? Because now it's packaged for that or on your Umbral. And then download the integration. These are like that's like the app store of Home Assistant. Download the one that lets you connect to Bitcoin miner. Home Assistant's pretty smart. It might automatically find your home thermostat or a smart switch or something. watch a couple YouTube videos, come to our office hours, read some of our documentation.

[1:11:45] Marty Bent: Yeah. And the 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 pointing at a pool? Like how do like we're producing this Bitcoin and the miner's running, I could see it, like how do I how do I get the Bitcoin?

[1:12:06] Tyler: 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 is stuck in my head for You're like, you're like, no, it's stuck in the hot tub forever. Yeah. The files are in the computer. so 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 Miami FPPS. You you shouldn't do that, in my opinion. But that's another conversation of another day. I'm a big advocate of Ocean. I like being able to build my own block template.

[1:13:12] Tyler: Koinos, they offer the ability to hook up your Lightning address with a Bolt 12 offer to your Ocean account, and you'll just 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 you send it straight to cold storage and don't worry about it ever again.

[1:15:26] Marty Bent: Yeah, they're enabling peer to peer digital cash in at a time when it's desperately needed. Gentlemen, it's been a pleasure working with you. I mean you guys have missed the work, but it's been it's been fun spitballing on this for the last three weeks.

[1:15:40] Tyler: It has. Yeah, I appreciate it. really excited to see what what the audience thinks of it. I know that, you know, people are pretty hungry for home mining. Yeah, there's always a lot of chatter online when they see a new new gadget come out. And I think it'll be cool to really get the playbook out there just to, 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. This is great. I just word of warning to the listeners, the viewers, stacking hash rate is more addictive than stacking sats.

[1:16:19] Marty Bent: Yeah, I I can I can I can cosign that as somebody who's been stacking hash rate for almost a decade now. It is addicting. It is masochistic, but it's addicting. And I think your application makes it less masochistic. But 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 round table, we are going to have sort of a one off call, I believe J July fourteenth that night. Hope you guys are available. 'cause that's what we've said it internally. I just told you that live on air, business on air. but yeah, we have the T F T C round table now.

[1:17:37] Tyler: Thank you, sir. We'll see ya July fourteenth. Looking forward to it.

[1:17:40] Marty Bent: Peace and love freaks.