Summary:
Mining cryptocurrency is similar to mining gold, relying on computational power and energy conversion.
Using a Raspberry Pi for mining yields minimal profits, illustrating the inefficiency of low-cost setups.
After 12 hours of mining, earnings totaled 0.0012 cents, far less than the electricity costs incurred.
Efficient mining typically requires expensive machines and considerations for future cryptocurrency value.
The environmental impact of crypto mining is significant, with 2.3% of US electrical energy consumed by mining activities in 2024.
The Physics Behind Crypto Mining
In olden times, people dug holes in the ground to look for gold, a practice known as mining. But what makes gold valuable? Essentially, it’s a social convention—we decide what holds value. Cryptocurrency operates on a similar premise. Mining involves using a computer to perform complex computations, and as more currency is mined, the computational power needed increases, mimicking the challenges faced in traditional gold mining.
A Raspberry Pi Monero Miner
To understand crypto mining practically, I decided to use a Raspberry Pi to mine Monero cryptocurrency. While it’s akin to digging for gold with a teaspoon, it serves well for observing the underlying physics.
Once operational, I measured the power consumption and thermal output. The Raspberry Pi operates at 5 volts and draws 0.62 amps, translating to a power usage of 3.1 watts. This energy is converted to thermal energy—no energy is contained within the cryptocurrency itself.
To quantify this, I placed the Raspberry Pi in an insulated container with 1,000 mL of water. As I mined, I measured the water temperature, discovering a thermal energy increase that closely matched the power input.
Show Me the Money!
After running the miner for 12 hours, the earnings amounted to 0.00000006 XMR, which converts to just 0.0012 cents. This raises the question: is it worth it? Considering the average electricity cost in the US is 16.94 cents per kilowatt-hour, running the miner cost 0.41 cents, significantly higher than the earnings.
While there are more efficient mining machines available, the future value of cryptocurrencies and potential locations with cheaper electricity, such as solar energy, could improve profitability. However, every joule of energy used results in an equal amount of thermal energy produced, necessitating a cooling system that, ironically, consumes more power.
In 2024, an estimated 2.3% of electrical energy in the US was dedicated to cryptocurrency mining, raising concerns about its efficiency as a resource allocation, especially considering the abstract nature of crypto itself.
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