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:
- Hashrate (mining work)
- Heat (100% of the electricity becomes heat)
Electricity determines:
- Your profitability
- Your safety
- Your breaker requirements
- Your ventilation needs
- The miner you should buy
- Whether your house stays standing 😊
This is the foundation of *everything* in mining.
Voltage, Amps, and Watts — The Simple Formula
Electricity has three key components:
- Voltage (V) — the pressure
- Amperage (A) — the flow
- Power (W) — the total energy used
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:
- You can’t run a 3000W miner on 120V
- You will trip the breaker instantly
- Or overheat the outlet + wiring (dangerous!)
240V circuits allow more power
With 240V, you can safely run:
- Avalon Qs
- S19 series
- M50/M60 WhatsMiners
- Most efficiency-focused miners designed for home use
This is why home miners often install:
- NEMA 6-20 outlets (240V, 20A)
- NEMA 14-30 outlets (240V, 30A)
- NEMA 14-50 outlets (240V, 50A)
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.
- 20A breaker → 16A safe continuous load
- 30A breaker → 24A safe continuous load
- 50A breaker → 40A safe continuous load
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:
- Undersized gauge wire overheats under load
- Long cords add electrical resistance (more heat)
- Coiled cords trap heat and can melt
- Cheap cords are not designed for 2,000–3,500W continuous loads
- Breaker won’t protect the cord if the cord overheats first
Minimum Requirements:
- Use 10–12 gauge extension cords for ASICs
- Extension cords must be rated for 20A or 30A depending on your miner
- Use cords specifically designed for high-wattage appliances
- Keep cords short — longer cords mean more resistance & heat
- Never use indoor lamp cords or cheap orange home-improvement cords
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:
- 8¢/kWh → highly profitable
- 12¢/kWh → borderline
- 15–20¢/kWh → often unprofitable
If you want to mine long-term, it's better to have:
- Lower electricity
- Fewer miners
…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:
- 3000W ÷ 1000 = 3.0 kW
- 3.0 × 24 = 72 kWh per day
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:
- Ventilation
- Inline fans
- AC Infinity systems
- Ducting
- Shrouds
- Heat reuse
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.