Mining 101: Electricity — The Most Misunderstood Part of Bitcoin Mining

If you understand the basics of electricity, you will understand mining. If you don’t, mining will feel confusing, risky, and unpredictable.

Good miners are electrical appliances. Great miners are electrical engineers by necessity.

Why Electricity Is So Important

Your ASIC converts electricity into:

Electricity determines:

This is the foundation of *everything* in mining.

Voltage, Amps, and Watts — The Simple Formula

Electricity has three key components:

There is ONE formula you must know as a miner:

Watts = Volts × Amps

Example: A miner that uses 3000 watts at 240 volts draws:

3000W ÷ 240V = 12.5 amps

That same miner on 120 volts would draw:

3000W ÷ 120V = 25 amps (too much for most circuits!)

This is why powerful miners must run on 240V.

Your Home’s Electrical Reality

Most beginners misunderstand this:

A typical American household 120V outlet is only designed for 12–15 amps continuous load.

That means:

240V circuits allow more power

With 240V, you can safely run:

This is why home miners often install:

Your house is wired for certain limits — miners push those limits.

Breakers & The 80% Rule

Electric codes assume miners run 24/7, so they are considered a continuous load.

Continuous loads may only use 80% of a breaker’s rating.

That’s why we built the: Breaker Load Calculator — so you can avoid blowing circuits or overheating wires.

Extension Cords & Bitcoin Miners (Important!)

Many beginners plug miners into extension cords without understanding the risks. ASICs pull heavy, continuous electrical loads — far more than most household appliances.

Using the wrong extension cord is one of the most common fire hazards in home mining.

Problems with Extension Cords:

Minimum Requirements:

Best Practice:

Avoid extension cords entirely when possible.
If you must use one, use a heavy-duty cord designed for continuous high loads.

Why Electricity Rate Matters More Than Hardware Choice

Electricity rate = the single biggest factor in mining profitability.

Two miners with identical hardware may earn VERY different results based solely on power price:

If you want to mine long-term, it's better to have:

…than higher electricity and “cheap” miners.

How to Calculate Your Miner’s Electricity Cost

Use this formula:

Daily kWh = (Watts ÷ 1000) × 24

Example: A 3000W miner:

Now multiply by your electricity rate:

If your electricity is 10¢/kWh:
72 × 0.10 = $7.20/day

Want this done automatically? Try our tool: Mining Profit Calculator

Heat: The Forgotten Side of Electricity

Every watt of electricity a miner uses becomes heat.

3000W miner → same heat output as 10 space heaters running 24/7.

This is why miners care so much about:

Managing heat is just as important as managing electricity.

Electricity: The Quick Summary

1. Watts = Volts × Amps

2. Breakers can only handle 80% continuous load

3. Power price determines profitability

4. Heat output = power usage

5. Running miners safely matters more than running them cheaply

Understand electricity, and you understand 80% of Bitcoin mining.

Continue Learning