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Cash Crops: Dutch Use Bitcoin Mining To Grow Tulips

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Cash Crops: Dutch Use Bitcoin Mining To Grow Tulips

Heat from bitcoin mining servers heats the tulip greenhouse close to Amsterdam, saving on power payments

Valeria Mongelli

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Footage by Valeria Mongelli. Video by Jan Hennop

Tulips and bitcoin have each been related to monetary bubbles of their time, however in an enormous greenhouse close to Amsterdam the Dutch are attempting to make them work collectively.

Engineer Bert de Groot inspects the six bitcoin miners as they carry out advanced sums to earn cryptocurrency, filling the air with a loud whine together with a blast of heat.

That heat is now heating the hothouse the place rows of tulips develop, chopping the farmers’ reliance on fuel whose worth has soared since Russia’s invasion of Ukraine.

The servers in flip are powered by photo voltaic power from the roof, lowering the usually enormous electrical energy prices for mining, and chopping the influence on the surroundings.

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Grower Danielle Koning says the tulips and bitcoin scheme is a ‘win-win state of affairs’

Valeria Mongelli

In the meantime each the farmers and de Groot’s firm, Bitcoin Brabant, are incomes crypto, which remains to be attracting buyers regardless of a latest crash out there.

“We think with this way of heating our greenhouse but also earning some bitcoin we have a win-win situation,” flower farmer Danielle Koning, 37, instructed AFP.

The Netherlands’ love of tulips prompted the primary inventory market crash within the seventeenth century when hypothesis bulb costs prompted costs to soar, solely to later collapse.

Now the Netherlands is the world’s largest tulip producer and in addition the second largest agricultural exporter general after america, with a lot grown in greenhouses.

However the low-lying nation is keenly conscious of the impact of the agricultural trade on local weather change, whereas farmers are combating excessive power costs.

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The computer systems used to mine bitcoin use enormous quantities of power

Valeria Mongelli

Mining for cryptocurrency in the meantime requires enormous quantities of electrical energy to energy computer systems, resulting in an environmental influence amid international efforts to deal with local weather change.

De Groot, 35, who solely began his enterprise earlier this yr and now has 17 shoppers together with eating places and warehouses, says this makes bitcoin and tulips an ideal match.

“This operation is actually carbon negative, as are all the operations I basically build,” says the long-haired de Groot, sporting an orange polo shirt along with his agency’s brand.

“We’re actually improving the environment.”

He’s additionally promoting tulips on-line for bitcoin through a enterprise referred to as Bitcoinbloem.

The collaboration began when Koning noticed a Twitter video de Groot had made about bitcoin mining, and referred to as him up.

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Vitality costs for heating the greenhouse have soared since Russia’s invasion of Ukraine

Valeria Mongelli

Now there are six servers at their hothouse, whose precise location Koning requested to maintain secret to keep away from thieves focusing on the 15,000-euro machines.

Koning’s firm owns half of them and retains the bitcoin they produce, whereas de Groot is allowed to maintain his three servers there in alternate for month-to-month visits to scrub mud and bugs out of the servers’ followers.

With a 20 diploma Celsius distinction between the air getting into the machine and leaving them, this gives the warmth wanted to develop the tulips, and to dry the bulbs that produce them.

“The most important thing we get out of it is, we save on natural gas,” says Koning. “Secondly, well, we earn Bitcoin by running them in the greenhouse.”

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Tulips and bitcoin have each been related to monetary bubbles

Valeria Mongelli

Large power prices have pushed some Dutch agricultural corporations that usually depend on greenhouses to cease rising this yr, whereas others have even gone bankrupt, says Koning.

In the meantime, the thinker Nassim Nicholas Taleb, who developed the concept of the unpredictable however historic “black swan” occasion, has in contrast Bitcoin to the “Tulipmania” that engulfed the Netherlands almost 400 years in the past.

This noticed costs for a single bulb rise to greater than 100 instances the common annual revenue on the time earlier than the bubble burst in 1637, inflicting banks to fail and folks to lose their life financial savings.

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Regardless of a latest plunge in worth, Bitcoin agency proprietor de Groot says the digital foreign money will final ‘eternally’

Valeria Mongelli

The cryptocurrency sector is at present reeling from the collapse of a significant alternate — with Bitcoin at present price round $16,300 per unit, down from a excessive of $68,000 in November 2021 — however De Groot is not anxious.

“I have absolutely no worries about the long-term value proposition of an immutable monetary system,” he says.

“Bitcoin will last for ever.”

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