Name of Company: Heatbit
Founder: Alex Busarov
Date founded: April 2020
The location of the headquarters: Distance Learning
No. of employees 25
Website: https://heatbit.com/
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Alex Busarov spent the first half of 2020 stuck in his Shanghai flat during COVID. He ordered an Antminer S9 Bitcoin mining machine to play with to quell boredom.
He quickly discovered two facts: Bitcoin miner are loud and hot.
Busarov, however, saw this second byproduct not as merely an inconvenience but as a great opportunity.
Fast-forward to the present day and Busarov and his team are preparing holiday shipments of bitcoin miners that run quietly and double as space heaters (as well as air purifiers) — the flagship product for his company, Heatbit.
Busarov’s product also helps decentralize Bitcoin’s hashrate. dangerously centralized.
“The first kind of value that I saw in this was how to use energy for heating your home and mining Bitcoin at the same time, but then the mission started evolving as I realized the importance of the decentralization of Bitcoin mining,” Busarov tells Bitcoin Magazine. “I think we’re enabling the most resilient infrastructure for Bitcoin to run on.”
Heatbits: How they Work
Heatbits are 24″ tall with an 8″ diameter. These devices have a cylinder shape with a sleek, slick finish.
Heatbit devices are easy to use. “as difficult as it is to plug in a Dyson device,” Busarov, according to
Users can start mining Bitcoins by downloading the Heatbit App and connecting the device with WiFi.
After the device has been running for a while, it uses no more power than a Dyson room heater. It also makes no more sound than a whispering whirring noise. Users may also choose to search for Bitcoin block without joining a mining pool.
“Basically, you can start without even knowing what a mining pool is,” Busarov explains. “But once you learn a little more or if you already know about mining pools, you just plug in the details for the mining pool you want to join, or solo mine.”
Busarov confirmed that while the ability to select your own mining pool, or mine alone has not been made available to all users just yet, it is expected to be soon.
“We don’t have any intention to lock users into a particular pool,” “He said”
If the device runs 24/7, it mines approximately 700 sats per day, which equates to approximately 20,000 sats per month — about $20 per month as per bitcoin’s price at the time of writing.
The user receives a sat for every bitcoin they earn.
Busarov knows that Bitcoin fee increases are causing concern among some users. He and his staff are therefore working to introduce Lightning.
“Lightning is definitely coming,” Busarov said “It’s not enabled yet, but it’s coming.”
Hashrate decentralization
Busarov stated that it was not his intention to create Heatbit devices in order to contribute to decentralization. He realized the value of Heatbit when he realised how centralized it can be.
“When you have five big mining companies and 20 well-known mining locations, if you want to damage Bitcoin, you know those 20 locations, right?” Busarov warned.
“Also, if the price of Bitcoin goes down a lot, which happens sometimes, and the mining companies are overleveraged, they might not exist anymore,” Busarov added that the major mining companies could go bankrupt.
“But people will still use the heaters, because they’re not spending any extra money to mine this way. They will still use their miners because they’re not losing any money, which makes it the cheapest way to mine.”
Busarov’s claim, that the miners that he built at home can support the Bitcoin Network, seems overly optimistic, considering that the current amount of hashrate produced by Heatbit is tiny compared to what major mining firms produce.
Busarov’s claim seems more credible when you consider the market size for home heaters.
“There’s about 200 million electric heaters being sold every year,” Busarov referred to Heatbit’s long-term market goals.
Busarov knows that in the near term buyers of Heatbits, which sell for $799, may not have the funds to purchase such a heater.
“Most people wouldn’t buy an $800 heater,” He explained. “We’re looking into making a more affordable version so that we can sell more.”
However, the focus has shifted from affordability to quality and speed. Busarov’s team has been working hard to create a reliable and durable device they can deliver quickly.
Build To Last, Ship Ready
The current iteration of Heatbit devices is the product of a tremendous amount of R&D as well as the sourcing of quality parts from over 70 different suppliers.
Busarov’s team has built a device which can withstand a lot of abuse. Bitcoin Magazine doesn’t encourage abuse to home Bitcoin heaters or Heatbit devices.
“Today, I was doing some testing of the devices for the latest batch,” Busarov said
“I put one into the box and was literally throwing it around. I was throwing it like UPS or FedEx might, and I took it out to find that it didn’t break,” He added.
Busarov smiled as he shared his information. The smile was derived in part from his description of the way he tests his product’s resilience and in other parts from the trust that the Bitcoin community has in him.
“When we started building, it was taking longer than expected,” Busarov added that both he and the team had to work under pressure, as preordered products were being shipped.
“Some people would complain about a delay in shipping and ask for refunds, and we refunded the money, but then a lot of people said, ‘Hey, guys, you’re doing a great thing. We believe in you. Keep going,” He added.
“When people say something like that to you, you can’t stop. When there’s so much faith and trust that people place in you, that gives you so much energy and motivation to keep going.”
Busarov’s team kept going, and eventually created a reliable product which is now ready for shipping en masse.
Heatbit: The Future of Heatbit
Busarov believes that once major home appliance companies discover what Heatbit is doing, they will want to create similar products.
“I think once we show that this is possible, more companies will come to it,” “He said”
“It will start getting really interesting when companies like Dyson and Samsung and the major electronics companies start looking into this,” He added.
“Imagine Samsung starts producing home devices — not necessarily space heaters — but other home devices that do mine at scale.”
Busarov is also keeping an eye out for developments within the Bitcoin open source mining movement and has kept in touch with a leader of this group: Skot, the founder of Bitaxe. He is looking for ways to integrate that idea into his product, but he also has safety in mind.
“I really like the open source Bitcoin mining movement, and I hope we’ll be able to contribute to it,” Busarov said
“That being said, we need to be careful, because heaters use a lot of power and it can be dangerous for people to just play with them,” He added.
Busarov concluded by saying that Heatbit was not just a product for consumers, it played a part in shaping the future Bitcoin mining.
“Bitcoin mining is not going to be about these huge warehouses using loads of energy and then these big companies having to sell the bitcoin they mine to pay for the energy they use and their operational costs,” He explained. “With home mining, you don’t have to sell any of the bitcoin you earn.”
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Source: bitcoinmagazine.com
