Bitcoin mining takes an important step towards clean energy transitioning from air cooling to water cooling.

Bitcoin Mining Milestone Transition to Water Cooling Promises Clean Energy Advancement

The once prosperous mining industry has also fallen into a predicament along with the downturn of the cryptocurrency market.

With the nearing of the halving, the expansion of computing power has stagnated, and the price of computing power has shown a overall downward trend. The entire industry is filled with pessimism and uncertainty.

However, in this seemingly desperate quagmire, a new mining technology has quietly emerged, bringing hope and momentum. This technology is water cooling.

Compared to traditional air cooling technology, it is difficult to meet the increasing demand for computing power. Overclocking can improve efficiency, but air cooling systems quickly reach their limits. Water cooling technology, with its superior heat dissipation performance, perfectly solves this problem.

• Crypto Market Weekly Overview (10.21-10.27) Cryptocurrency Market Cap Soars, Is a Frenzied Bull Market Just Around the Corner?
• Weekly Preview | Celestia may go live on mainnet on October 31; OP will release tokens worth about $33 million on October 30.
• Detailed Explanation of RWA Asset Tokenization Sorting out the underlying logic and implementation path for mass adoption

Bitcoin hashrate unit price from 2022 to date

With water-cooled miners, computing power can increase by more than 10%, while reducing noise by 60%. This not only means a significant increase in individual machine efficiency, but also makes mining facilities more likely to comply with environmental regulations. In addition, water cooling technology is also expected to reduce the investment in new machine development and delay the uncertainty risk brought by the increase in industry concentration.

In short, water cooling technology has injected a shot in the arm for the struggling Bitcoin mining industry. As the industry reshuffling approaches, mining machine manufacturers who have mastered the advantages of water cooling technology are likely to gain the upper hand in the new era.

Looking back at traditional air cooling systems, water cooling technology is more suitable for the cryptocurrency mining industry

In 2009, Satoshi Nakamoto proposed the concept of decentralized digital currency in the Bitcoin whitepaper, marking the beginning of the development of cryptocurrencies and blockchain technology. In the more than ten years of development, a huge industry ecosystem has formed around Bitcoin, and mining machines, as one of the important infrastructure, have undergone multiple technological revolutions.

Bitcoin achieves decentralized consensus through the proof-of-work mechanism, and miners maintain network security and ledger accounting by providing computing power. As time goes by, Bitcoin’s system will gradually reduce miners’ mining rewards. This means that miners need to constantly improve their computing power to maintain their income. Therefore, more powerful dedicated mining machines have emerged.

In the early days, mining machines mainly used GPUs for SHA-256 algorithm calculations. In 2013, mining machines using ASIC chips entered the market, which far surpassed GPUs in efficiency, triggering the first round of increased computing power. Subsequently, advancements in semiconductor technology have driven multiple rounds of mining machine upgrades and replacements. Currently, mainstream mining machines use ASIC chips made with 5nm or 7nm process technology.

With the increasing difficulty coefficient, traditional air cooling systems are no longer able to meet the demand. Overclocking can increase computing power but also brings greater heat dissipation pressure. In addition, considering environmental sustainability, the new generation of mining machines needs to achieve efficient heat dissipation and low noise. In this context, water cooling technology has become an important way for product iteration, thanks to its significant heat dissipation advantages.

Compared to traditional air cooling technology, water cooling technology has gradually become a new trend in the iteration of cryptocurrency mining products due to its excellent heat dissipation performance and multiple advantages. The basic working principle of this technology is to circulate cooling water to the surface of the mining machine chip through sealed water pipes, absorbing the heat generated by the chip, and then exchanging heat through an external radiator or cooling tower, ultimately dissipating the heat from the system.

Why is water cooling system highly anticipated, and these core advantages are irreplaceable:

1. High heat dissipation efficiency: The specific heat capacity of water is 4000 times that of air, and the thermal conductivity is 25 times that of air. This means that under the same flow rate, water cooling technology can more effectively reduce the chip surface temperature and has better heat dissipation performance.

2. Reducing uneven temperature distribution: Compared to air cooling systems, water cooling technology can evenly cover the entire chip surface, effectively reducing temperature differences, thereby improving system stability.

3. Better overclocking capabilities: Under the same power consumption, water-cooled mining machines can achieve higher overclocking frequencies, which can increase the hashrate by more than 10%, significantly improving mining performance.

[Image: Aerial view of water cooling system]
4. Low noise: Water cooling systems only require lower fan speeds to maintain heat dissipation, resulting in significantly reduced noise during operation, reducing noise by over 60% compared to air cooling systems.

5. High reliability: Water cooling systems do not contain easily worn parts, such as fan blades, so they have a longer service life and lower maintenance costs.

6. Good adaptability: Water cooling technology adopts modular design, which can be deployed according to different environmental needs, making it easier to achieve global deployment. In particular, in high-temperature and high-humidity areas, water cooling technology demonstrates its advantages and provides reliable solutions for mining machine operations.

In regions with dense mining fields such as the Middle East and Texas, the advantages of water cooling technology are becoming more pronounced. The Middle East region faces challenges in mining machine operations due to high temperatures and high humidity. However, water cooling technology precisely solves these problems.

The CEO of Exahertz, a company based in Oman, said, “The excellent heat dissipation performance of water cooling technology provides us with ample protection for mining in desert areas, which was almost impossible in the past. Water-cooled mining machines can run very smoothly in Oman, and we have not experienced any downtime, maintaining almost 100% online rate.” This example vividly demonstrates the outstanding performance of water cooling technology in extreme environments.

Water cooling performs well in terms of energy efficiency, benefiting Bitcoin mining profits

In the context of continuous Bitcoin issuance and gradually halving block rewards, energy efficiency has become a key indicator to measure the competitiveness of mining machine products. Energy efficiency refers to how much electricity is needed for a mining machine to output 1T hash rate, and the lower the value, the better the performance of the mining machine.

 Energy efficiency of encrypted mining industry continues to decline

With global energy prices steadily rising, the proportion of electricity costs in mining operation costs is increasing. On the other hand, the increasing difficulty of mining makes it urgent to increase the hash rate per machine. In this context, the importance of energy efficiency is becoming increasingly prominent.

For miners, choosing a mining machine with high energy efficiency can not only obtain higher hash rate output at the same power, but also help reduce power consumption and alleviate operating cost pressures. In addition, high energy efficiency design makes it easier for mining machines to meet environmental regulatory requirements.

 Bitmain released the latest ANTMINER water-cooled mining machine S21 Hyd during the 2023 World Digital Mining Summit (WDMS 2023)

For mining machine manufacturers, improving energy efficiency in product research and development and design is the only way to maintain market competitiveness. Mastering leading water cooling technology and developing products with energy efficiency that reaches the highest level in the industry will help manufacturers gain a competitive advantage in the market.

In conclusion, energy efficiency has become an important indicator to judge the superiority or inferiority of mining machine products and determine market competitiveness. Mining machine manufacturers must attach great importance to energy efficiency technology innovation to improve the energy efficiency ratio of their products and stand out in the fierce market competition.

Behind high returns and high performance is higher deployment costs: Understanding the key components of water-cooled mining machines

Although liquid-cooling mining systems have various advantages, they are not suitable for all mining operations. This is because compared to air-cooled operations, they require high initial capital investment and strict professional knowledge.

The successful operation of a water-cooled mining machine relies on multiple key components, which play an important role in meeting the demands of different working environments. The main components of a water-cooled mining machine include cooling plates, water pipes, water pumps, radiators, and fans, among others. Depending on the specific requirements of the working environment, it can be configured as an open or closed water circulation system.

Water-cooled mining machine components

1. Cooling plates:

Cooling plates are components that directly contact the chips. They have large areas of microchannels, which ensure that the cooling liquid absorbs heat evenly. Copper or copper alloy materials are usually used to improve thermal conductivity. This crucial component effectively transfers heat to the cooling liquid, ensuring the stable operation of the mining machine.

2. Water pipes:

Water pipes are used to connect the cooling plates and radiators, completing the circulation of the cooling liquid. To meet the requirements of mechanical strength and corrosion resistance, high-quality materials such as steel, plastics, or rubber pipes are usually used. These pipelines play a critical role in connecting various components and ensuring the smooth flow of the cooling liquid.

3. Water pump:

The water pump is the power source of the water cooling system. It is responsible for extracting the cooling liquid from the radiator and delivering it to the cooling plates. The performance of the water pump needs to match the flow requirements of the water pipes and provide sufficient pressure head to ensure the smooth circulation of the cooling liquid.

4. Radiators:

Radiators are crucial components with large heat dissipation areas. They facilitate the heat exchange between the cooling liquid and the surrounding air, effectively dissipating the heat generated by the system. Usually, fans are used to enhance the efficiency of the radiator by forcing airflow.

5. Fans:

Fans are key components of the cooling system. They provide forced airflow to the radiator, accelerating the dissipation of heat. Compared to traditional air cooling systems, liquid cooling systems’ fans can typically operate at lower speeds, reducing energy consumption and noise.

Depending on different application scenarios, open or closed water circulation methods can be chosen. Open systems directly exchange heat with the surrounding air, resulting in lower costs. On the other hand, closed systems enclose the cooling liquid and radiators inside the casing, making them suitable for outdoor mining locations in harsh environments, protecting the system from external interference and corrosion. These components collectively form the core of water cooling technology, providing reliable support for mining machine performance.

The broad application prospects of liquid cooling technology bring a series of opportunities to the entire cryptocurrency industry

Liquid cooling technology is currently showing broad application prospects, covering various aspects such as improving single machine computing power, reducing research and development iteration costs, and adapting to harsh environments, bringing enormous potential and opportunities to the cryptocurrency mining industry.

1. Improving single machine computing power:

The introduction of liquid cooling technology can significantly increase the overclocking space of mining machines, allowing Hashrate to increase by more than 10% compared to air cooling at the same power consumption. This advantage will effectively address the continuous increase in computing difficulty and provide greater room for improvement in mining machine performance.

2. Reducing research and development iteration costs:

Currently, the research and development cost of advanced process ASIC chips continues to rise, and the relationship between cost and performance improvement is gradually decreasing. However, the overclocking application of liquid cooling technology can continuously improve the efficiency of old chips, thereby reducing the investment cost of a new round of research and development iteration and saving important resources in the mining industry.

3. Adapting to harsh environments:

Liquid cooling technology adopts modular and container designs, which can be quickly deployed according to different mining field conditions. It has excellent anti-interference and anti-corrosion properties, thereby significantly reducing maintenance costs. This makes liquid cooling technology an ideal choice for reliable operation in harsh environments.

4. Promoting industry upgrading:

As the concentration of the cryptocurrency mining industry continues to increase, large-scale miners have the ability to adopt new technologies and equipment. Liquid cooling technology is expected to become a key technology driving the upgrading of the entire industry, leading the industry towards higher efficiency and sustainability.

5. Coping with environmental regulation:

In an era where environmental protection is increasingly concerned, liquid cooling technology has the characteristics of reducing energy consumption and noise, which helps improve the sustainability of mining farms and better respond to environmental public opinion and regulatory requirements. This will help the entire industry operate more responsibly.

According to industry predictions, the penetration rate of liquid cooling technology in newly deployed mining machines will continue to increase in the future. JP Morgan analysts even believe that by 2025, liquid cooling mining machines are expected to account for more than 25% of the global total mining machine count, further highlighting the bright prospects of liquid cooling technology in the cryptocurrency mining industry. This trend will help improve the efficiency, sustainability, and competitiveness of the entire industry, bringing more opportunities to miners and investors.

The shift of Bitcoin mining to clean energy is the trend, and more investment opportunities are expected to emerge

Under regulatory pressure, the Bitcoin mining industry must enhance its green and sustainable image in order to seek development.

First of all, in the context of global carbon neutrality, green and environmentally friendly practices have become the necessary development path for all industries. The Bitcoin mining industry needs to take action in order to continue. Leading listed mining companies in the industry have already formed organizations, publicly disclosed carbon emissions and energy consumption data, and continuously optimized their power structures by increasing the proportion of renewable energy use. This is an important measure to convey their commitment to sustainable development to regulatory agencies and the public.

In addition, mining companies are also actively seeking cheap and clean energy sources. Besides the United States, the abundant hydropower resources in the Nordic region are an important direction of choice. Deep collaboration with green energy companies is also becoming a trend.

Lastly, ESG (Environmental, Social, and Corporate Governance) will become an essential core for the mining industry’s development. Establishing organizations similar to green foundations for regular promotion and lobbying work is imperative to gain government support and public recognition.

In summary, green and low-carbon development, as well as managing government relations, have become the top priorities for the Bitcoin mining industry. Only by energy conservation, emissions reduction, compliance with regulations, and effective communication with the government and the public, can this industry gain a favorable position and achieve sustainable development in the new era.

At the same time, we also see that water cooling technology provides an important technical path for improving efficiency, reducing costs, and adapting to complex environments. It not only narrows the gap between old and new machines but also lowers research and development investment. Against the backdrop of industrial upgrading, water cooling technology is expected to become a driving force for the development of mining products.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!