Bitcoin mining has seen exponential growth since the first ASIC miner shipped in 2013, improving hardware efficiency from 1,200 J/TH to just 15 J/TH. While this progress was driven by better chip technology, we are now reaching the limits of silicon-based semiconductors. As further efficiency gains diminish, the focus must shift to optimizing other aspects of mining operations, particularly the power setup.
Three-phase power has proven to be a superior alternative to single-phase power in bitcoin mining. With more ASICs being designed for three-phase voltage input, future mining infrastructure should consider adopting a uniform 480v three-phase system, especially given its abundance and scalability in North America.
Understanding Single-Phase and Three-Phase Energy
To understand the importance of three-phase power in bitcoin mining, it is important to first understand the basics of single-phase and three-phase power systems.
Single-phase power is the most common type of power supply used in residential environments. It consists of two wires: one phase and one neutral. The voltage in a single-phase system oscillates sinusoidally, delivering power that reaches a peak and then drops to zero twice per cycle.
Imagine pushing someone on a swing. With each push, the swing moves forward and then comes back, reaching a peak height and then dropping back down to the lowest point before you push again.
Like swing, a single-phase power system has periods of maximum and zero power output. This can lead to inefficiencies, especially when consistent power is required, although this inefficiency is negligible in residential applications. However, it becomes significant in large-scale, industrial operations such as bitcoin mining.
Three-phase power, on the other hand, is widely used in industrial and commercial environments. It consists of three live wires, which provides a more constant and reliable power supply.
In the same swing analogy, imagine that you have three people pushing the swing, but each person is pushing at different intervals. One person pushes the swing just as it begins to slow down after the initial push, another pushes it through a third of the cycle, and the third person pushes it through two thirds of the cycle. The result is a swing that moves much more smoothly and consistently because it is being pushed from different angles continuously, maintaining a constant motion.
Similarly, a three-phase power system provides a constant and balanced flow of energy, resulting in higher efficiency and reliability. This is especially beneficial for high-demand applications such as bitcoin mining.
The Evolution of Bitcoin Mining Power Requirements
Bitcoin mining has come a long way since its inception, with significant changes in energy requirements over the years.
Before 2013, miners relied on CPUs and GPUs to mine bitcoins. The real game-changer came with the development of ASIC (Application-Specific Integrated Circuit) miners as the bitcoin network grew and competition increased. These devices were designed specifically for the purpose of mining bitcoins and offer unparalleled efficiency and performance. However, the increased power requirements of these machines necessitated advancements in power systems.
In 2016, a top-of-the-line miner was able to compute 13 TH/s while consuming around 1,300 watts (W). While considered highly inefficient by today’s standards, mining with this rig was profitable due to the low network competition at the time. However, to generate meaningful profits in today’s competitive landscape, institutional miners now rely on rigs that require around 3,510 W.
The limitations of single-phase power systems have become apparent as the power requirements of ASICs and the efficiency demands of high-performance mining operations increase. The transition to three-phase power became a logical step to support the industry’s growing energy needs.
480v three phase in Bitcoin mining
Efficiency first
480v three-phase power has long been the standard in industrial environments in North America, South America and other regions. This widespread adoption is due to its many advantages in efficiency, cost savings and scalability. The consistency and reliability of 480v three-phase power make it ideal for operations that require greater operational uptime and fleet efficiency, especially in a post-halving world.
One of the main advantages of three-phase power is its ability to deliver higher power density. This reduces energy losses and ensures that mining equipment performs optimally.
In addition, implementing a three-phase power system can lead to significant savings in electrical infrastructure costs. Fewer transformers, smaller wiring, and a reduced need for voltage stabilization equipment contribute to lower installation and maintenance costs.
For example, a load requiring 17.3 kilowatts of power at 208v three-phase would require 48 amps of current. However, if the same load is supplied by a 480v source, the current requirement drops to only 24 amps. This halving of the current not only reduces power loss, but also minimizes the need for thicker, more expensive wiring.
Scalability
As mining operations expand, it is critical to easily add more capacity without major overhauls to the power infrastructure. The high availability of systems and components designed for 480v three-phase power makes it easier for miners to scale their operations efficiently.
As the bitcoin mining industry evolves, there is a clear trend towards the development of more three-phase compatible ASICs. Designing mining facilities with a 480v three-phase configuration not only addresses current inefficiencies, but also future-proofs the infrastructure. This allows miners to seamlessly integrate newer technologies that will likely be designed with three-phase power compatibility in mind.
As shown in the table below, the immersion cooling and hydro-cooling techniques are superior methods to scale bitcoin mining operations in terms of achieving higher hashrate output. But to support such a much higher computing capacity, the configuration of three-phase power becomes necessary to maintain a similar level of energy efficiency. In short, this will lead to higher operating profit with the same profit margin percentage.
Implementation of Three-Phase Current in Bitcoin Mining Operations
Transitioning to a three-phase power system requires careful planning and execution. Here are the key steps involved in implementing three-phase power in bitcoin mining operations.
Assessing power requirements
The first step in implementing a three-phase power system is to assess the mining power requirements. This involves calculating the total power consumption of all mining equipment and determining the appropriate capacity for the power system.
Upgrading electrical infrastructure
Upgrading the electrical infrastructure to support a three-phase power system may involve installing new transformers, wiring, and circuit breakers. It is essential to work with qualified electrical engineers to ensure that the installation meets safety and regulatory standards.
Configure ASIC miners for three-phase power
Many modern ASIC miners are designed to operate on three-phase power. However, older models may require modifications or the use of power conversion equipment. Configuring miners to operate on three-phase power is a crucial step in maximizing efficiency.
Implementation of redundancy and backup systems
To ensure uninterrupted mining operations, it is essential to implement redundancy and backup systems. This includes installing backup generators, uninterruptible power supplies, and redundant power circuits to protect against power outages and equipment failures.
Monitoring and maintenance
Once the three-phase power system is operational, continuous monitoring and maintenance are crucial to ensure optimum performance. Regular inspections, load balancing and proactive maintenance can help identify and address potential problems before they impact operations.
Conclusion
The future of bitcoin mining lies in the efficient use of energy resources. As advances in chip processing technologies reach their limits, it becomes increasingly important to focus on the power setup. Three-phase power, specifically a 480V system, offers numerous advantages that can revolutionize bitcoin mining operations.
By offering higher power density, improved efficiency, lower infrastructure costs and scalability, three-phase power systems can support the growing demands of the mining sector. Implementing such a system requires careful planning and execution, but the benefits far outweigh the challenges.
As the bitcoin mining industry continues to evolve, embracing three-phase power could pave the way for more sustainable and profitable operations. With the right infrastructure, miners can harness the full potential of their equipment and stay ahead in the competitive world of bitcoin mining.
This is a guest post by Christian Lucas, Strategy at Bitdeer. The opinions expressed are entirely his own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.