In this episode, we dive into the world of Bitcoin mining with Kent Halliburton, CEO and co-founder of Sazmining.
https://sazmining.com
https://x.com/khalliburton
https://iris.to/kent
https://x.com/Sazmining
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- Kent shares his journey from working in rooftop solar to leading a company that focuses on renewable energy-powered Bitcoin mining.
- We explore the benefits of using hydroelectric power in Paraguay and Wisconsin, and how SaaS Mining is making Bitcoin mining accessible to the average person.
- Kent discusses the challenges and opportunities in the Bitcoin mining industry, especially after the recent Bitcoin halving. He explains how SaaS Mining's business model aligns with their clients' interests, ensuring a transparent and mutually beneficial relationship.
- We also touch on the importance of financial literacy and sovereignty, both in personal life and in the broader context of Bitcoin. Kent shares personal anecdotes about raising his daughters with these values and the lessons learned from living in the Amazon.
- Throughout the episode, we explore the potential of Bitcoin mining as a tool for economic empowerment and environmental sustainability, and how it can be a more cost-effective way to acquire Bitcoin compared to traditional exchanges.
https://sazmining.com
https://x.com/khalliburton
https://iris.to/kent
https://x.com/Sazmining
🔥 LISTEN TO EPISODE HERE
(00:02) Introduction to Bitcoin Mining
(02:38) Meet Kent Halliburton: Journey to SaaS Mining
(05:55) How SaaS Mining Works
(09:08) Challenges and Opportunities in Bitcoin Mining
(15:36) Bitcoin Mining in Paraguay
(22:31) Bitcoin as a Tool for Peace
(30:04) Raising Children with Bitcoin Values
(37:01) Financial Literacy for Kids
(47:06) Life in the Amazon
(50:12) Future Plans for SaaS Mining
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[00:00:03]
Unknown:
Have you ever wanted to get into Bitcoin mining, but you don't know where to start? Guess what? My guest, Kent Halliburton from SaaS Mining, talks to us, normies. Even though we're Bitcoiners, I consider myself a normie because I'm not super techie, and I don't know how to solder things. And I wanna learn how to do Bitcoin mining. And I love that SAS Mining is 100% renewable energy with hydroelectric. It's exciting, and they manage everything for you and you get to stack sats while the water flows. So check out this episode. Kent and I talk a lot about family. We talk about the environment. We talk about moving to different places, and then, of course, we talk about Bitcoin mining and what are some of the obstacles to get started and what are some of the benefits of doing Bitcoin mining versus just buying Bitcoin off of an exchange. So tune in. You guys are gonna love this episode. And again, thanks for supporting Bitcoin for Peace. Aloha.
Hey, aloha. Get ready for an epic episode. And if you love it, please share it. You know why? Because you got the love. Enjoy, my friends. Hey, aloha, love tribe. In a sustainable way. Welcome, Kent Halliburton, CEO and cofounder of SaaS Mining. What's up, brother?
[00:01:51] Unknown:
Not a lot, man. I'm just really happy to be here. This is this is this is one I've been looking forward to since I met Jim Madera. I know. I was it's like it seems like 10000 years ago. It does. It does. It's, I worked I worked in rooftop solar before this, and we used to call it the the solar coaster. And I feel like we need to come up with an acronym for, for something similar here in the Bitcoin industry because it is a, it's it's a rock and roll, you know, a shake and jive industry. It does not sleep,
[00:02:21] Unknown:
you know, may maybe the bit coaster. But I think what about the bit bouncy house?
[00:02:27] Unknown:
The bit bouncer?
[00:02:29] Unknown:
The bit bouncer. It's just like Yeah. No. You're getting knocked all over. It's fun, but, yeah, it is definitely a ride. I mean, holy cow. Yeah. So well, Kent, I'm so happy to finally get you on the show, and I want the audience to understand who you are, what's SaaS mining all about, and then, you know, let's get going forward there. How'd you get to this place of becoming the CEO and cofounder
[00:02:53] Unknown:
of Oh, what a what a journey it's been. How far back should I go? Mhmm. To the No. I'll I'll I'll I'll go to the end of my rooftop solar career, and and start from there. So I I took a couple year, sabbatical. I, you know, was working, had a team of about a 100. I was competing with Elon Musk's cousins and just hit burnout, had this life dream to see in the world. So I took off for a couple years, thrown a backpack and and, went all over the place, really. Had some great adventures, great fun, you know, got the ants out of my pants. And by the time it was all said and done, I'd fallen in love with a Portuguese woman and Bitcoin. And so Yeah.
2016 was Portugal. Started family, marriage, life, house, you know, all the classic American dream stuff just in Portugal. And, started my entrepreneurial journey and, you know, was was doing like Bitcoin concierge services, went through, you know, shitcoin trading, mining from home. What else did I do? I was trying to run Bitcoin ATM. So, you know, kind of just trying to find my place, really. Mhmm. And nothing really stuck. A big part of that was just language and lack of network.
[00:04:04] Unknown:
But I I read Jeff Booth's The Price of Tomorrow and I suddenly realized, oh my gosh. Love him. Or is he I've got him up there somewhere. I know Jeff's Yeah. Oh, he's right above my head. He's above my head. Yeah. There it is. There it is. Yeah. Above the belly cast of my my child and Jeff Booth.
[00:04:21] Unknown:
That is that is the book that that shifted for me, and I realized, hey. This this solar energy background, I need to lead into that and get into mining. So I heard Will, the founder of SAS Mining on a on a solar podcast. I knew the host. The host put us in touch. One thing led to another. We raised some money. And at that point in time, the money we were raising was for some, shovel ready, you know, large Bitcoin mining projects. And we had a slight slight snag which is by the time we finished raising the money, this is, you know, mid 2021, it wasn't enough to build them. So we said, oh, this is a problem. What are we gonna do now? And so, Will, the the founder, had a good idea. He said, look. Well, Compass is doing they're growing really fast. It seems like they've got some chinks in their armor. Like, why don't we go approach that market? And so I said, you know, give them my rooftop solar background. Whereas overseeing, like, hundreds of of systems being built across the US each each month, I said, you know, I think I've got the skill set to do that. So, I took on the operations. He took on the the point of the spear in relationships, visionary side of things, and we started we started jamming together. And, now now here we are today, we've built what I believe is the easiest way for the normie to, to mine their own Bitcoin.
And the beauty of the process is that it's it's at a discount, you know, as compared to the exchange price. And so, you know, the average Joe can DCA their way into Bitcoin, via a mining based experience and wind up, you know, saving about 20 to 30% on on, on the stats that they receive through the process.
[00:05:56] Unknown:
And is it is it KYC ed?
[00:05:59] Unknown:
Well, no. We have to have contact information so we can talk to our customers. Mhmm. But that is all we need is just to be able to talk to our customers. Because if you look at what we do, we sell a server and we service that server. So, you know, we don't have a lot of regulatory oversight like an exchange might.
[00:06:18] Unknown:
Okay. So that's pretty exciting. And then so, obviously, we just had the halving, you know, a couple months ago. How has the the landscape shifted for your business and for people who are looking to get into mining at this point?
[00:06:32] Unknown:
Yeah. Well, I mean, it has. Right? You know, it's gotten more competitive with the having. So our first of all, I think it's worth describing how SAS Mining makes money in the Okay. Great. In this. So, when clients come to our website, they buy a mining rig, the same way that you would any other, like, ecommerce type of product. Right? And then we get it procured, we get it shipped to our data center which is right now in Paraguay. Got very low cost excess hydropower that are powering, that's powering our data center there. And, once it's plugged in, a client will sign up and and get their service plan set up to pay for the electricity.
And once that occurs, the the hash rate is directed, to the client, and they start to accrue rewards that get sent directly to their Bitcoin address. Now we set it up such that we don't make money any other way than the way our clients do. What that means is that when we sell mining rigs and we sell the the electricity to power them, those are costs. And so what we do is we instruct the mining pool, and and for us that's Luxor right now, and we will add more in the future. But we instruct the mining pool to simply split the block reward when it's paid out. So we receive just 15%. And what's beautiful about that is it makes sure that we have the exact same, set of incentives as our clients do. And that means that we're going to make the the type of decisions that our clients want us to make. Like, hey. How quickly can we get your rig plugged in? How do we make sure that your rig is up as long as possible? So, in back to your question about what's happened after the having. Right? Like, we've had the same experience our clients have. Right? So, their amount of, Bitcoin rewards cut cut in half just as ours did. And so, you know, we've been we've been working through that.
What I see is historically that this is the, the hardest time to be a miner right after the the the having. Mhmm. However, historically, it has been the best time as soon as this time period is over. Right? This is when the price likes to go and when the price goes faster than the difficulty of mining rigs, increases, then there's a a large profit opportunity there. And so even though the value proposition doesn't look particularly great at the moment, our our clients are still mining profitably and set up for when that, when that opportunity occurs. So really at its core, if you don't believe in the price cycle of Bitcoin, it probably doesn't make sense to mine. But if you do, it's it's one of the the best opportunities, and ways to acquire Bitcoin.
[00:09:15] Unknown:
And then as far as you know, because you you brought up Compass and they obviously had some issues in the past. And like you said, obviously, business is business. We wanna be entrepreneurs and go Mhmm. Be competitive and obviously try to constantly create better products and services for the market. Since you're just in Paraguay, how is it there, like, as far as a a single point of failure for, let's say, the government decides they don't like that you're doing this or there's a hurricane or whatever. I don't know if you get hurricane storm or, you know, some kind of natural disaster that, you know, I may I guess, in general, like, you have you've gotta put these servers somewhere physically on earth. You know? Yeah. So, it sounds like this is the best place that you guys have decided. So how do you how do you make sure that, you know, people that got their their booties covered?
[00:10:08] Unknown:
Yeah. No. That's that's an important one. So, I I I'm a big believer that, incentives are more important than laws, because that's what people are tend tend to to follow. It's kind of like, incentives or like gravity for people. So what, what so just to back up a sec, we operate in Wisconsin and Paraguay. So we're not just in Paraguay but we're full in Wisconsin. We chose Paraguay because of the incentives and the incentives are quite unique. Basically, Paraguay and Brazil, they share a massive dam that generates about 14 gigawatts of power. It's called the Atapu Dam. And the way it was arranged between the two countries, they were to split the power that comes off the dam. So 7 gigawatts each. The problem is and and this dam was built started to be built in the the early seventies.
You know, World Bank IMF type of project. Right? Now the problem is that Paraguay can only use today about 2 gigawatts of that power. And so here you've got this massive amount of excess power, and I'm talking like a Texas sized opportunity. Right? Wow. For power, It's all clean. It's all hydro. It doesn't matter where on the grid you are, but it's excess. And so I saw that I you know, we were evaluating, hey, you know, we filled up our Wisconsin facility like the first half of last year, and we said, okay. This model is working. We wanna keep growing. Where should we go? And it was right at the time that the Biden administration was looking to put a 30% tax on mining. There was some legislation going on in New York. Texas had some legislation that could go through and we just said, you know, this is probably a good time to consider this Paraguay option right now for our clients.
So we we leaned into that because the electricity price was was very cheap. It's all clean. And the incentives were such that I said, look, at at the end of the day, you know, politicians need to be voted into the office, and the best way to get voted into office is to provide economic opportunity. So if if we can take this excess power that they've been selling to Brazil at a loss and we can change it from being a liability into being an asset for the the GDP, well, shoot, that's gonna equal votes, that's gonna equal politician support. So, indeed, actually this year, it came up where there is there was a small set of politicians that actually attempted to put a 180 day ban in place on Bitcoin mining. And that action beget a much bigger reaction and now, the, the the which is the name of of the fellow, it's the economic ministry, the head of economic, the economic minister. He's come out and said, no. We wanna sell all the excess power to, crypto miners, which is just means Bitcoin mining. Right? Because nobody can say Bitcoin directly.
So anyhow, that's quite exciting. Say Bitcoin directly. I don't get it. Be well, I think from a political standpoint, you can't single out one technology. And so the best way they can talk about it is crypto, but they just mean Bitcoin because that's where all the electricity is going. It's And so how much at this point of that extra, I think, 5 gigs? You said 5. Right? Yeah. 5 gigs.
[00:13:24] Unknown:
Like, how much is, like, getting consumed right now by Bitcoin miners?
[00:13:28] Unknown:
That's a good question. I'm not entirely certain. What I do know is that, 2 to 400 megawatts of it was being illegally mined. And so in the last month or so, there's come out some some clamp downs on some illegal mining. And and I think it's actually worth talking about for a minute because Yeah. Yeah. There was a lot of lost in translation on Twitter about, the the mining means. Yeah. Everybody thought they were shutting down, Bitcoin mining and it's like, yo, you guys, this is a good thing. What you don't realize is there are parts of this world where people will just go on and go out there and throw jumper cables on the electric lines and steal the electricity. It's quite literally theft, right? And so, these folks are given a bad name to the rest of us that have contracts that are doing everything above board and and upright. And so, cracking down on that actually is good because it makes our our industry, healthier. And so that's what's been going on is cracking down on that. And there's about 2 to 400 megawatts of illegal mining they estimated in, Paraguay. So my guess is we're probably pushing about a gigawatt
[00:14:36] Unknown:
of of power consumption at this point by the Bitcoin mining industry and the government. All the Bitcoin miners down there, all the companies. And so how many other who's your competition down there?
[00:14:45] Unknown:
Well, I mean, that's a that's a You know what? A pretty thing about our so so Penguin has probably got the biggest name. They're a specific, Paraguayan operator. They've got a big operation. You know, Marathon, Rioter are are moving in. And I know some of the other folks are too not, you know, don't feel comfortable disclosing, but a lot of it has been disclosed, publicly by, like, free the equivalent of a Freedom of Information Act. Mhmm. So there's you can you can go see how much people are paying for power, etcetera. It's been published in the local newspapers there, but it's quite it's quite interesting to see folks moving in. And I think that, you know, we're past the pioneer phase of of Paraguay at this point, and now it's starting to move in to kind of the settlers that come in behind the pioneers and and sort of, settle the landscape. And I feel like that's where we are in in the mix. But, you know, from a competition standpoint, you you mentioned Compass earlier and just to just to, tie into that for a sec, like, I I think of Compass as our inspiration but not our competition, because we offer mining as a service which is slightly different. I can go into the nuance of that. But then secondarily, what I've realized is we're competing with the exchanges because if we do our job right with the software experience that we're building, we're gonna naturally bring people away from exchange based acquisition and instead choose to, acquire the Bitcoin the native way, the way Satoshi designed the network, which is through mining.
And it it to date, nobody's really focused on creating that user experience. And it's not easy, and I get why a lot of people sort of ran away from it to make it easy and intuitive, you know, on par with, like, an Uber type of experience for for ride sharing, but that's our aim.
[00:16:32] Unknown:
And and how you know, because I love this obviously concept of getting not going and buying off the exchanges and how can we get our own stats, and how can we help support, you know, strengthening the network this way. What is there financing available for people? Like, is that a whole I mean, that seems like a whole industry in and of itself that people could go finance the rigs.
[00:16:52] Unknown:
So my answer to that is you can, and and I do think some of our clients are doing that. So you can go to a Hodel Hodel, you know, one of these places, post your Bitcoin as collateral, get USDT, and we accept that as payment, and you can grab a mining rig from us and and start accruing Bitcoin. Right? But we have not integrated that directly into our platform, and we've got some ongoing conversations, and I hope to not with holdah, hold on. I don't wanna create any rumors. But, you know, what I think would be really nice is if we if we could offer financing because, you know, the upfront ticket price to buy a mining rig because clients that own the mining rig, we just have possession of it. So they've got the serial numbers all the way through, our system from from from the mining pool, all the way through to our platform.
But you can't we can't sell less than a mining rig. Right? And so the ticket price of getting started with us is the cost of a mining rig, which is between $25155100. Right? That's out of reach for a lot of people. And so clearly, there's an opportunity there for financing to to bring that upfront cost down. Yeah. It seems like it would be beneficial for, you know, to have
[00:18:05] Unknown:
that for all of us because it's like, oh, I wanna get 10 rigs, but I don't have $50 sitting in my bank. You know? Yeah. But I can you know, I've got some kidneys lying around here.
[00:18:16] Unknown:
Yeah. Let me let me let me just go to black market there and sell one of these puppies. I don't need puppies I need to.
[00:18:22] Unknown:
And and as far so okay. So that's obviously your first your capex. Your first expense that you're gonna have is, you know, getting the rigs. So electricity, obviously, is the, you know, your your variable. How do you guys is everybody there getting the same price for this electricity? Are you all negotiating differently because maybe you're gonna say, we're gonna commit to buying x amount of this excess hydroelectric power, you know, because this is what our company we think predict we're gonna use versus this company is like, we're gonna buy this much, so give us a discount. Is that how electricity buying works?
[00:18:57] Unknown:
Well, not quite. We've got arranged a a fixed price for power for several years. And so we just pass that through a cost to our clients. We do add a very, very small amount to cover maintenance. We don't have to bill for repairs with the the mining rigs. Cool. But that's that's it. We just figured, gosh, you know, going through the billing collection process for need to repair a fan or power supply goes out, it's not worth the hassle. Let's just assume an average cost across the mine and and and bake that in. So our costs actually are kind of like a a warranty as well because we're gonna cover all the repairs, for your mining rig throughout throughout. And then what's the energy cost per kilowatt hour?
4.7¢. Oh, that's pretty good. And it's green. That Yes. And it's hydro. Yeah. Yeah. I like to think of hydro as the, the the equivalent of, the fireman. You know, nobody nobody hates the fireman. But, in the same way from an energy source, hydro, nobody hates hydro.
[00:19:59] Unknown:
I know. It seems like I I I'm sure you've seen this image of the the floating solar panels that just completely got annihilated in something, and you're just like, oh my gosh. That's not good. And, obviously, a solar guy, you know, like, what so what's your what's your experience moving from solar to hydro as far as, like obviously, there's 2 totally different ways of, like, here's this whole chunk of, you know, these panels versus here's this elect hydroelectric dam that we're dealing with. Like, is this a better way to get green energy for people in sustainable ways to mine?
[00:20:33] Unknown:
Well, my answer is pretty nuanced on this. So the the through line in my career is is not obvious, but it's actually helping people be sovereign.
[00:20:43] Unknown:
Mhmm.
[00:20:44] Unknown:
So with rooftop solar, and this is specific I I use rooftop solar, specifically because the panels we were selling were almost exclusively going on people's roofs or maybe in ground mount at their home, but it was helping homeowners become sovereign because they were able to generate their own electricity, you know, spin their meters backwards, and and that was always a very empowering moment to help homeowners turn on their their solar systems. And I find that there's a similar empowering moment that occurs with our clients when they've received their first stats in their wallet. It's kind of like, oh, my gosh. You mean this came directly from the network and I did this? It's kind of a little a little little little little little dance that the clients go through when they realize like, Hey, this is mine, you know. And so that through line of empowerment, I think, really motivates me and and I find exciting because there's, like, what I believe that we're building actually is the most potent, social layer, or portion of the social layer of the Bitcoin network because it's it's folks out of skin in the game. They understand Bitcoin, and they have a sense of ownership in Bitcoin itself, the network, through the ownership of their mining rigs. And it's hard to understate, how important that is. If you look at the group that has done the most in the US for protecting the Bitcoin network, there's a strong argument to be made that it is the Bitcoin net miners, and it's because of all the capital they've invested. Yeah. There's some of the biggest contributors to the lobby groups that are educating our legislators and and and keeping, the legislators from, you know, throwing a gutter ball here on us, with with how they regulate the the Bitcoin industry. So, yeah, the more folks that we can get mining, I think, the the healthier the network will be.
[00:22:31] Unknown:
And what has been an obstacle for, you know, in your experience to people understanding, especially, you know, legislators and, you know, people out there who don't really get why Bitcoin is going to help create, you know, these jobs and this economic opportunity. And to me, obviously, my whole thesis is Bitcoin is a tool for peace. If we don't have peaceful money, you can't have a peaceful world. You're gonna have all of these things with the family breakdown, with mental health breakdown, with your society, with wars, with the endless fiat printing of, you know, bombs, etcetera. And so, how can what have you come across as, like, the biggest thing where people are just like, no. No. No. And then they finally get it that why that mining is so important.
[00:23:15] Unknown:
With mining. Oh, yeah. I I thought you were asking me what my, my strategy is for orange pill people because I've still not figured that out. I picked up my first bin quite in 2015. It's just it seems like, I do have a theory on that. I'll I'll come back to it. But, no, the, the, you know, I think as far as getting to people, without aligning, I it's not easy. You know? It's you know, Brandon Quidham is an adviser for SaaS Mining, and he's got a quote that I absolutely love, which is, you know, Bitcoin mining takes everything you, everything you're wrong about.
I'm saying it horribly. The basically everything you know about both money and energy, that you didn't know, like, you have to then know, right? So it's it's kind of it's kind of complex and it's outside of people's purview. And I I just like to explain it as simply as possible as you're taking electricity and you're converting it into Bitcoin at a regulated rate. Right? And and you don't need to know more than that, but I think the concept of being able to create Bitcoin out of this mining experience, it does sort of create a bit of a bork in people's heads that cause them to just stop and not look any further. We hope to change that over time, but I I do think that, it seems mystical to people.
And, you know, frankly, I I think it's fascinating and it is kind of mystical, but I understand it. And so it doesn't seem like this. You know, it's what do they say about, something magic that, like, once science understands it, it's not really magic at all.
[00:24:45] Unknown:
You know? Yeah. And I think I think Bitcoin mining fits in that same bucket. I know. It's like I'm just looking at the screen. Right? I'm like, is Kent behind this meme? Like, where is he? Oh, and how is he here? You know? But at first, you think it's like if you've never seemed experienced, you're like, it is. It's like this magic thing. It's like, no. It's electricity and and signals and light and all these things. So it's it's it's important that we get educated. I know I was out at dinner last night and, you know, it's all you know, when you were saying about what's your orange pill strategy, you know, we can chat about that. It's like, it depends.
It always depends. Who's your audience? Who are you talking to? What are their pain points? Any kind of marketing that you would do, you think, like, what's the person's pain points? What do they understand? What are they missing? How do you get them over the bridge a to b, etcetera? And so there's no one conversation that is gonna be the right there's no cookie cutter size, you know, orange pill conversation. You know? Like, some people are so excited about electrifying villages so that they can, you know, have a light bulb, you know, to do surgery with. Right? And other people are like, oh, I care about human rights, or other people are like, I care about separating money from state. Like, you have to know who you're talking to before you can really have intelligent conversations, I think. So I think it yeah. It depends.
[00:26:04] Unknown:
Yeah. Yeah. No. And and and, you know, at the at a core, I think the the longer you're in Bitcoin, the more you stare at it. I think the the deeper the truths are that you realize. Right? Like and the more you stare at it, the more it, like, stares back at you and, you know, it's a it's a weird it's a weird process that that one goes through. But, the what I've kinda come to at this particular point is that we're actually like the the beatniks or the the hippies and or or on this, like, civil rights journey because the freedom to transact underlies all our other freedoms. Right? And if we don't protect that, then ultimately we're going to lose, other freedoms along the way. And so, you know, I I think of, Bitcoiners is actually the new civil rights movement.
Totally. At its core, and I wish we would lean more into that as a community and talk about it because I think the civil rights angle resonates a lot better with folks than, than anything else. I at least that's been my experience is like the human rights side of things. Like all the the good things that Bitcoin can do when people see that, they they tend to say, Oh, okay. You know, the the rational like which I'm prone to do, tell people the history of money and how this is better money like it sort of it sort of makes people class over just turn sideways but you know when I talk about what Eric is doing with gridless out in Kenya. Yes. Wow, that's super rad. Like let me get involved with that. Right? So I don't like you said, there's no there's no one strategy, that fits all people. But I I will say it's it's really interesting living in a in a place like Peru. So, you know, I I think I was mentioning to you. I live in the high Amazon here, which is an unusual place talking to you over Starlink. You know, technology has made life possible. And I I moved here because of my wife's work. Right? This wasn't for for SaaS Mining. But, it's really interesting to see how people here understand Bitcoin from, like, a monetary standpoint much easier.
But the technology side is is kind of more confusing. Right? Like, the private key management that is is difficult versus, like, I feel like in the US perspective, like, understanding the monetary side is the more challenging bit versus the the technology side. Hey. No problem. Like, I can I can write down 12 words? You know? So it's really interesting how there's, like, different dynamics in different places, not just like the process of orange peel, but also, how to actually use Bitcoin. Right?
[00:28:30] Unknown:
Yeah. And I think here, obviously, in the States, it's like we're because of dollar hegemony everywhere, it's like we're conditioned to trust the dollar, trust the central bankers, trust the Fed, trust all the nonsense. And just like we're conditioned, you know, I say we, I don't include myself anymore after my skin has turned orange. But, you know, from the medical profession, right, you're a lot of these folks are they entrust their health to, you know, this the the the Western medical doctors, which it's just like, oh my god. Question everything and learn about how your operating system works. You know? And so a lot of us, because we're so tired and exhausted and because the fiat system is a shit show, we don't have time to go investigate these things. And so you're just exhausted, and you're like, well, I guess this is okay because these people say so because they have more power, more letters next to their name, or they have more money. So I have to trust more letters next to their name, or they have more money, so I have to trust them. And then I'll just be exhausted and go back to my 3 jobs, you know? And so it it's such a mess. Right? And so I think we're we're we're so lucky to have gotten into this rabbit hole, you know, because it does open up all these other perspectives and all these other areas of life of like, well, what else is bullshit out there that we've been told to believe so that we comply.
You know? I I just I love being in this community. I feel like it's the biggest blessing for sure. Next to my kids, it's the biggest blessing in my life for sure, my loved ones. And, it's it's amazing. So let's talk about loved ones, Kent. Yeah. Let's talk about raising daughters on a you know, with Bitcoin values. Let's let's hear this. They wanna I loved that you put that in your your, your messages to me. So
[00:30:21] Unknown:
Yeah. Well, I I'm gonna have to I'm gonna have to go back to the the the sovereignty, side of things. So I I I did I did grow up on a farm, and so kind of just having hands in the dirt as a kid and having to problem solve and do these things, it was just always, you know, take take maximum accountability Mhmm. For your actions, you know, which is, like, when you're more connected to reality, like, you know, your actions, in the direct feedback you get, like, okay. You you got to be accountable. There's nobody else in between you and reality. Right? And so farming was a bit that way, and then also you realize the element of chaos of the weather and how you can't control everything, but, you know, you do your best to manage. And and so I think that that that both led me to realize, like, most people, did not grow up on a farm and and didn't have that opportunity to get that sense of of harmonizing with the planet in reality. And so, my sense is that with Bitcoin, we can get closer to that. I I believe that fiat has untethered untethered us from reality, because it doesn't obey the laws of physics, and I think we see that as society on board right now. And so living here in the Amazon, living in a place where people are living simpler, less connected digitally, and more, connected to, you know, just the elements around them.
Yes. It's not as well off. A lot of folks aren't here, but I think that there's lessons to be learned, by living a simpler life. And so that's part of it is is trying to create and instill, like, levels of accountability, in in children. So, like, you know, I've got a 6 year old daughter and and, you know, up until recently, she would pilfer a few, Soles. I live here in Peru. Off my desk, and the currency is called Soles. And she'd, you know, take the coins. She liked to keep them and stack them in her in her, piggy bank. And, okay, that's that's fine. And then all of a sudden, she tore the piggy bank open. I realized how many Soles are there. You know, she wanted to go buy a toy at the market. Okay. Great. You you can buy a toy on us once, but, you know, next time, like, how are you gonna earn this money? You know? So making sure that she understands where the money has to be worked for, and can't just be, given away freely or you don't value it. And so funny part is, I was like, hey, Naya. You know you took all this. Right? And she's like, oh, I don't I don't wanna steal this money. So she gave it she put it all back on my desk. So now I've got a big stack of Soles on my desk, and she's she wants to know how she can earn it. Right? So that was a that was a proud proud papa moment. I know. I was like, wow. I'm always gonna cry. You're good.
Yeah. Yeah. That was a proud papa moment. I was like, oh, she gets it. She gets it. You don't just take. So, yeah, I think those are the sorts of value though, you know, getting getting into a you make yourself accountable and and she is I mean, I got lucky through the the course of the life that we live. She was born in Portugal and and I've got another daughter that's much younger, still kinda baby mode. Right? So hard to see how she's developing, but my 6 year old got lucky to grow up with, you know, 2 different languages in the house, Portuguese and English, and now being here, Spanish. And so she is a very confident and independent, little critter running around just talking to everybody in whatever language they speak.
That's awesome. Which is, yeah, which is pretty fun to see. So, yeah, that instill in that accountability, I think, leads to confidence, internal confidence, and a sense of purpose out in the world. So, yeah, these are some of the ways, but I'd love to hear, how you are doing the same with yours.
[00:33:53] Unknown:
It's it's, you know, one of the gifts of of having young children like you is you don't have to unteach them anything. Mhmm. That's true. You don't have to deprogram them. Same thing with all of us adults. Like, the longer we have been here on earth and we've been calcified in our thinking, it takes a lot to undo that, especially, you know, I was talking with James Lavish, and he was talking about his, you know, his old hedge fund dudes in Wall Street, whatever. And it's just, like, so difficult to get this concept around their head, especially when, you know, the old system is what's paying the bills and luxuriously for these guys. So it's like to sit and try to go, nope.
This is the way. It's really, really tough. So I think the further along you are on the journey, it's more difficult. And so my children are further along on their journey because they're teenagers. Like, my daughter's going to college in a month and a half. And It happened down. But she's not going too far, so that's good. She's staying here in Boulder. You know, and my son's gonna graduate in another couple years. So he's starting to get into Bitcoin, which is super, and he's, like, really excited about it and not as excited as I am because I'm crazy. But, at least he's not pushing back. You know? And, so he got Bitcoin for his birthday, and he's been investing. So this is cool. But my daughter is just like, I don't care.
So I just I don't push because the more I push, the more she goes like this. And so, again, know your audience. But I wanna ask you this. Are are you familiar with, the lightning piggy project? Oh, you know what? I think I read something from some of your work, but I have not talked to anybody about it. Just read a tweet here or there about it. So please. Yeah. So well, it's so cool because I Richard and and the crew over there, they were actually in Madera at the kids' zone area. So they had a little lightning piggy thing set up. I got to meet him in, El Salvador a couple years ago, and they were starting the project. I was like, oh, this is great. We need lightning piggy. And so it was like, you know, the 3 d printed pig, and then there would be the display that would show how many sats were in a child's wallet. And then, yay, look at this. So that's their piggy bank. Well Yeah.
So preview you know, my ex husband was you know, he still runs a fund. We started together, but he was always way more, you know, adept at finance than I was, even though I worked at Deloitte and I have an accounting background. I'm just just because you can doesn't mean you should. Fair enough. But but I still have that mind. I'm always thinking of, like, how to tinker and build products and stuff. And so I was like, like, 20 years ago, one of my nephews went to his, you know, mom and my sister-in-law, and he was like, can I have the credit card to go buy some video game points? And I was just like, why are you giving him your debit card? Like, what if he goes and, you know, buys a jet or something, you know, whatever?
Right. There's just like, well, I'll know later. It was just something that I was like, well, isn't there a better way for us to, like, have kids learn about, you know, financial literacy? And Mhmm. Knowing what we know that most people don't have great financial literacy, adults included, I was like, well, what if we created some kind of a financial literacy education model, but then also tied it to this was a debit card at the time, and this is going into lightning piggy, so there's actually a thread here. I promise. But I would like I was like, well, what if we did something where you had, like, this wallet and any money that comes in, you will have, like, a quarterly planning session with your family, and then you will decide what goes in these 5 buckets. I call them buckets. And so it's the 5 disc model. It's donate, invest, spend, college, and save.
And so college obviously now is god knows what's going on there, but just we'll call it education. But so so let's say whatever. So you get a $100 that goes in for your, you know, allowance or Christmas or whatever. You can say, okay. I wanna put 5% and donate or 10% and donate. I wanna invest 30%. I wanna save for a bicycle long term. I'm gonna put, you know, 10% in my education fund, and then I wanna have, you know, 10% in my ice cream, you know, short term spending thing. It's kinda like what you do typical financial planning but for kids.
And then okay. So every time somebody gets, you know, grandma sends some money for the holidays or whatever, it's all gonna hit that and then it does the splits, right, automatically. And then instead of just piggy lightning wallet seeing one wallet, you see 5. You know? And so you'll see what's going on kind of like you would do with an EQ, like a an equalizer for, you know, music and like, okay. We're up here at our goal. Our goal is to get to this many sats. And then if the kid is like, oh, I think I wanna go buy some ice cream. I'm gonna go spend some money out of this wallet. But then they realize they're this close to getting the goal for their bicycle. And they visually can see, like, I'm almost there.
Maybe I'm gonna transfer my short term account and put it over here into my spent you know, my long term savings or whatever or invest or donate. And then parents could get a trigger that says, hey. Johnny, you know, decided that to do the right thing. Do you wanna match what he just did? Or double you know what I mean? And so there's all Oh, gamify this thing. I know. Right? Exactly. So gamify it. Make it fun. Make it interactive with your family because, you know, so many people in the past, it's like, don't talk about religion, don't talk about money, don't talk about politics. I'm like, this is why they're all, you know, can cause problems. So I'm like, let's talk about money in an intelligent way together as a family. So so, you know, I've been talking with Richard for a while, and I'm like, let's see if we can build this interface and because now you can do splits easily with Ellen Ellen Bits. And so, yeah. So that's like a fun thing to do, and you can do it all ages. And once the kids outgrow the pig, then they're like, oh, I like Taylor Swift. So 3 d print Taylor Swift face and give her all things. You know?
But it's like you give that autonomy and that engagement and that touch and feel, like, you know, you were talking about with doing the mining. You know? And we can do stuff we've got with your kids, and then you get to engage with what are their dreams. Oh, they wanna go save the llamas. Okay. Cool. Maybe we'll go on a llama family vacation or something. You know? Like, it opens up so many doors for connection, you know, with your family. So I think it could be an interesting project. I'm gonna pitch it to Wolf, the Wolf Accelerator and see if they wanna help build it out.
[00:40:29] Unknown:
Heck, yeah. I'd love to see it built out. That'd be fun. I think I think I think the I would love to use that with my daughter. Right. And I just I just think the one caveat would be that the biggest,
[00:40:39] Unknown:
the biggest percentage would go to ice cream right now. So I mean, right now exactly. And that's the thing. She's not in there worrying about the llamas just yet or whatever or her her PhD. Yep. She's like, I really need those sprinkles, dad. No.
[00:40:55] Unknown:
No. No. No. Ice cream is the biggest thing. When you live in a hot environment like this, it's, it's, oh, it's critical every time. Coconut ice cream?
[00:41:04] Unknown:
Yes. We do have coconut ice cream. That is that is a favorite. It's so good. I know. We used to live in Hawaii, and they had, Coconut Glens. And you drive out there, and he had all the just giant coconut farm, and you would just get the best coconut ice cream ever. It was so good.
[00:41:20] Unknown:
Yeah. There there are advantages. There are disadvantages too to living in the Amazon. There's, there's everything is a bit bigger here, you know, including the insects. Oh. And I'll have to learn how to adapt to that. What's it been like? I mean, so how and you've been there for how long? Because I've been here. So we officially moved, the beginning of last year, but we did a trial year, for that just to see if this was something we we wanted to do. And so, yeah, I guess we're closing in on 3 years at this point in in total. It's been an adaptation.
The biggest part has been, just getting a home for ourselves built because, you know, most folks do a very simple building style here and that is not very comfortable as a Westerner. And so finding folks, getting the house built, that's been the biggest challenge. But now we're in, that's beautiful, helpful, and, and, yeah, just adapt. You know, after a long enough period of time, my Spanish has gotten much better. That's helpful too. And I think just the the creativity that comes with learning another language has been really helpful, you know. You have to what I've realized is when you when you deal with multiple languages, you don't always have a direct translation for the way that you want to say something. And so you've gotta get creative with the words you do know to get the same idea across. And I think that that that causes a little bit of, flexibility in the way you think in general and can just lead to different neural pathways.
And then I noticed like it just you can think a little bit more dexteriously on your toes.
[00:42:55] Unknown:
I like it. I know I that's one regret I have is not learning a second language from a young age, you know, and I feel like my kids know some Spanish. You know, they've had to take Spanish for years years. But, I think, you know, same with music, it it touches these different parts of your brain in these neural pathways. And so and then that applies in other areas when you do have to problem solve and think and get creative, you know. Yeah. And so, so I think it's super cool. What's the biggest, craziest bug, insect, creature, critter, snake thing that you've seen that you're like, oh, god?
[00:43:31] Unknown:
I I think, so tarantulas seem quite quite a few of those. And and and, yeah, and so so those are those are common. And and when they come in your bedroom at night, that's that's particularly, yeah, that's particularly problematic. But I actually think, you realize that they're actually pretty peaceful, docile critters, after a little while. Like, they're Why do we get them out? It's like you broom. You just you just get them they'll just grab on the end of a broom, and then you hop through the door. You know? So it's not you're not having to kill them. But there, there's some in there there are some spiders that are that are big that we do wind up just okay. Sorry, bud. You came in the wrong house. Yeah.
[00:44:10] Unknown:
You do the little stare and moan, and you're like, okay. You this is your zone and this is our zone. And, yeah, don't cross the zone.
[00:44:18] Unknown:
Yeah. But but we do have, like, bullet ants here, which are which if you don't know what the bullet ant is, it's it's it's an ant. It's about this big, and it's got a venomous tail on it, and it's supposed to be the most painful insect sting. They're not particularly aggressive, but you seem crawling around the ground sometime, but they apparently, if you do get stung by them, it feels like a bullet. And so that's that's what people say, the pain lasts for 12 to 24 hours and even locals will go to the hospital for pain relief. Doctor. Wow! Doctor. So that's that's an intense one. And then, so thankfully, you know, 3 years, I've not been stung by one of those. But there is, you know, you've got the common cockroach, but then there's like these jungle cockroaches that I'm not kidding you, are like this big. And they don't really come indoors much, but you'll see them like crawling around the leaf litter. And every once in a while, one will get indoors, but it is something else to see, you know, a cockroach the size of a small puppy crawling. So Oh, god.
Yeah. So that's the downside of living in the Amazon. You get you gotta get used to big critters. But the weird thing is because they're big enough, it's almost like you can see their personalities, which sounds like, having, like, stick bugs, like, this big, like, going walking around. You're like, oh, do do do do do. Yeah. Exactly. Exactly. The time playing in your head when you're watching them move. Yeah. You just you just kinda realize, oh, okay. Like, like the cicadas, like, they're they're all over the place. And you just realize those suckers are dumb as rocks, and they just keep bouncing off the same wall over and over again. Can't see straight. And anyway, so it's it's funny to interact with the wildlife.
[00:45:57] Unknown:
I bet. How do they how does your daughter and the younger one may not have as much interaction. Does she appreciate seeing these things?
[00:46:04] Unknown:
Oh, yeah. I mean, she doesn't really so we started coming here about the age of 3, and for her, it's just normal. Like, you know, my my mother's in town at the at the moment so we we went on a nice, jungle hike the other day and my daughter just rips off her sandals throws them off to the side and just goes running through the jungle like it's nothing. Oh, wow. Yeah. You are growing up a different way. That's the best way. I know. When we lived in Maui, my kids were 35 when we moved there. We got to live there for 4 4 years, I think, a little over.
[00:46:35] Unknown:
Not long enough, of course, but just having that young age where they it's just like you spend most of your time outside. You're not afraid of all the little things that are out there. We didn't have as many big creatures as you guys did. That's one bonus about that island, or any of the Hawaiian Islands, in fact. But, yeah, it's just it's a it's a blessing, you know, to get to be there with your family and feel like you're back. It's sort of like now instead of your farm, you've got this jungle that is, you know, similar but obviously different.
So, okay, so let's talk. What are the plans? What do we got? What do we got going? Is SaaS mining doing anything in the future that we should all know about that, you know, are you going to any events? Are you gonna go to the Nashville? Are you going to Pacific Bitcoin? What you got going on? All of the above.
[00:47:22] Unknown:
Yeah. So, I'll be at Mining Disrupt next week. Nashville, the month after that. Fairly certain, although I haven't committed to it yet, fairly certain I'll be I'll be at, Pacific Bitcoin as well. Cool. Those are the events on on the horizon, for me personally and and representing SaaS Mining, of course, that's that's where I'm going. Well, I mean, I I I do love hanging out with Bitcoiners, so that's actually the the real motivating factor. Right? Family reunion. This role. Yeah. Family reunion. Exactly. Yeah. You gotta you gotta go sing sing with the choir to, to come back rejuvenated. Right? Wow. So, that's on the horizon. As far as SaaS mining, I think we are going through an interesting year where as an early stage startup, especially, it's dependent on software. So that's really what we've done differently as we've come to this marketplace and let's say, look, if we're gonna deal with 100 of customers, we've gotta build a software solution to manage all the invoicing and the billing, the the, the payment rails with integrating with credit cards, with, Bitcoin, with, USDT, like, because people wanna pay by a variety of different mechanisms. Mhmm. Being able to monitor and and and and fairly track, energy consumption, being able to display it on a way that helps somebody see it real easily.
What we built through, like, our MVP process was, like, January of last year. I mean, we just kept building, building, building as we realized what clients needed and we're asking. And we got to a certain point at the beginning of this year where we realized our software was basically put together with Bubblegum and BailingWire at that point. We said, Okay. We gotta take a step back. Let's go take what we've learned, digest it, go go rebuild from the ground up so we've got a scalable foundation. So we're going through that process at the moment. So our feature set has not been as great as we were able to deliver last year, but that process should be over by mid July. And at that point, we're gonna be able to start running a lot more quickly. And there's there's a lot that we want to, add on and offer to our clients to to make it an even better experience such as, you know, having, like, clear notifications through the system. Hey. Your mining rig, is down right now because we got a bit of curtailment.
You know, just so people don't have to ask. If we do our jobs right, clients aren't gonna need to contact us is what I've realized because all the information will be at their fingertips. And, of course, we love to hear from our clients. I'm not saying we don't want to be contacted, but it's quite difficult to manage everybody's individual mining rig in such a way that all the information is transparent. And we're doing what nobody has ever tried to do before as well. So there's not really like a a road map for what we're building except for to just listen to the market and and take that feedback in and and try to digest it and and turn it back into, very, very useful design. So it's it's a fun challenge and one that my entire team is motivated by. But, yeah, it's so that's the future for SaaS Mining, and none of that financing, I think, is is quite high on the priority list as well as integrating some other mining pools.
[00:50:26] Unknown:
That's what I was gonna ask you about, other mining pools, like the different you know, I keep hearing about ocean mining and all I don't know. I'm not a miner yet.
[00:50:36] Unknown:
Yet? Yeah. Well, I'm gonna talk to you about that. We gotta we gotta change that.
[00:50:40] Unknown:
Hey. I know a guy. Oh, no. I know. I'm like, I'm I'm excited. I wanna start you know, I think it's just if anything, you know, get your first couple stats under your belt and start playing. Right? Get your first miner and start getting excited. You don't have to go buy a 1,000 miners. Just get one.
[00:50:57] Unknown:
Right? Yeah. That's right. That's right. That's that's what I that's my argument right now is just just get a mining rig, diversify how you're acquiring Bitcoin. Right? So I'm I'm not saying to diversify your investments. I'm just saying diversify how you acquire them because there's different counterparty risks. And by the way, you get a better bang for your buck, with this because if you're mining at a discount to the exchange price, well, your dollar goes further. Right? You get more sats for your dollar. So it's it's worth at least dipping a toe in the water. Yeah. I think so too. And it's fun. I know I had somebody come over.
[00:51:29] Unknown:
Tyler is doing a lot of heating reuse, and I know you said you kinda delved into that part too. And, obviously, we can go get the plug and play heaters. I obviously, Boulder, you need heat 8 months out of the year or 9 months out of the year. And so we're talking I live up in the mountains, and so he's just like, oh, propane's really expensive, and you can use electricity instead and do all this. So it's just I'm like, okay. Maybe I can do a little here, a little of the you know, it's just like all these different interesting ways, like you said, diversify your stack your stacking methodology.
Mhmm. That's right. That's right. I love it. It's so cool. Well, I love this conversation, and you're awesome. I'm so glad we finally got to to connect and, you know, talk a little bit about what you're up to. Can can we come visit, like, if we wanted to go do a site visit and, and check stuff out? Is that a possibility?
[00:52:22] Unknown:
Oh, I'd love to say yes to that question, but the truth is no. The, in Paraguay where we're mining, discretion is the better part of better part of valor. So we've actually got, you know, a 10 foot high fence that goes clear around the entire property, all brick and then electric fence on top of that, a guard. Security cameras. So it's just not not safe or wise to, to let it open to the public or mining. It's it's a lot of valuable equipment. And so, yeah, in very select cases, we do. But for the most part, the blanket answer is no. I'm sorry. But I'll send you pictures. I'm happy to. Cool. It'll be like, I'd I'd adopt a minor,
[00:53:02] Unknown:
in the old days. Remember you're probably too young for this, but remember Sally Struthers when you would, like, adopt the kids? Mhmm. They were always I do. I do. Then you'd get the pen pal notes and stuff, so it's kinda like that. Yep. Yep. But, yeah, that's so cool. But so okay. Any last things you wanna tell everybody? I know everybody needs to go follow you on on Twitter at, k halliburton. And I'm gonna have all this stuff in the show notes, and I've got your nostril address and everything that'll be in the show notes so people can check that out. Any words of wisdom or final thoughts for, you know, normies who wanna dip their toe in water?
[00:53:40] Unknown:
Oh, gosh. I just to tell them tell everybody, you know, come on in. The warm the water's warm and fine, you know. Like, it's it's it's not as scary. I think that's the biggest issue that our industry has faced is that there's been a lack of trust, in the vendors serving, the sector. And we've certainly faced that. And I think that, we are overcoming that as a company, But it is the thing I tell my team over and over again, which is just, hey, guys. This is a reputation game above and all else because at the end of the day, our customers have to trust us to have possession of their equipment. There's no other way to do this than to build a high trust reputation in our industry. And so, you know, it's just one customer at a time working to do that. And I can't tell you the number of times that we could call the scam, but, we're still here and we're still growing, and clients are having a good experience. Trust our check our trust pilot reviews. And my DMs are open. So come find me on Twitter, and and I'll be happy to chat with you. Amazing.
[00:54:41] Unknown:
Awesome. Well, thank you so, so much for taking time out of your day from your family and working to be here with us at Bitcoin for Peace. And, Yeah, everybody. Thanks again for tuning in and make sure that you follow Kent. And until next time, I hope you guys have a wonderful day. And thanks again, Kent, for, taking time to be with us. Yeah, you're very welcome. Thank you. All right. Peace, love and aloha everybody.
Have you ever wanted to get into Bitcoin mining, but you don't know where to start? Guess what? My guest, Kent Halliburton from SaaS Mining, talks to us, normies. Even though we're Bitcoiners, I consider myself a normie because I'm not super techie, and I don't know how to solder things. And I wanna learn how to do Bitcoin mining. And I love that SAS Mining is 100% renewable energy with hydroelectric. It's exciting, and they manage everything for you and you get to stack sats while the water flows. So check out this episode. Kent and I talk a lot about family. We talk about the environment. We talk about moving to different places, and then, of course, we talk about Bitcoin mining and what are some of the obstacles to get started and what are some of the benefits of doing Bitcoin mining versus just buying Bitcoin off of an exchange. So tune in. You guys are gonna love this episode. And again, thanks for supporting Bitcoin for Peace. Aloha.
Hey, aloha. Get ready for an epic episode. And if you love it, please share it. You know why? Because you got the love. Enjoy, my friends. Hey, aloha, love tribe. In a sustainable way. Welcome, Kent Halliburton, CEO and cofounder of SaaS Mining. What's up, brother?
[00:01:51] Unknown:
Not a lot, man. I'm just really happy to be here. This is this is this is one I've been looking forward to since I met Jim Madera. I know. I was it's like it seems like 10000 years ago. It does. It does. It's, I worked I worked in rooftop solar before this, and we used to call it the the solar coaster. And I feel like we need to come up with an acronym for, for something similar here in the Bitcoin industry because it is a, it's it's a rock and roll, you know, a shake and jive industry. It does not sleep,
[00:02:21] Unknown:
you know, may maybe the bit coaster. But I think what about the bit bouncy house?
[00:02:27] Unknown:
The bit bouncer?
[00:02:29] Unknown:
The bit bouncer. It's just like Yeah. No. You're getting knocked all over. It's fun, but, yeah, it is definitely a ride. I mean, holy cow. Yeah. So well, Kent, I'm so happy to finally get you on the show, and I want the audience to understand who you are, what's SaaS mining all about, and then, you know, let's get going forward there. How'd you get to this place of becoming the CEO and cofounder
[00:02:53] Unknown:
of Oh, what a what a journey it's been. How far back should I go? Mhmm. To the No. I'll I'll I'll I'll go to the end of my rooftop solar career, and and start from there. So I I took a couple year, sabbatical. I, you know, was working, had a team of about a 100. I was competing with Elon Musk's cousins and just hit burnout, had this life dream to see in the world. So I took off for a couple years, thrown a backpack and and, went all over the place, really. Had some great adventures, great fun, you know, got the ants out of my pants. And by the time it was all said and done, I'd fallen in love with a Portuguese woman and Bitcoin. And so Yeah.
2016 was Portugal. Started family, marriage, life, house, you know, all the classic American dream stuff just in Portugal. And, started my entrepreneurial journey and, you know, was was doing like Bitcoin concierge services, went through, you know, shitcoin trading, mining from home. What else did I do? I was trying to run Bitcoin ATM. So, you know, kind of just trying to find my place, really. Mhmm. And nothing really stuck. A big part of that was just language and lack of network.
[00:04:04] Unknown:
But I I read Jeff Booth's The Price of Tomorrow and I suddenly realized, oh my gosh. Love him. Or is he I've got him up there somewhere. I know Jeff's Yeah. Oh, he's right above my head. He's above my head. Yeah. There it is. There it is. Yeah. Above the belly cast of my my child and Jeff Booth.
[00:04:21] Unknown:
That is that is the book that that shifted for me, and I realized, hey. This this solar energy background, I need to lead into that and get into mining. So I heard Will, the founder of SAS Mining on a on a solar podcast. I knew the host. The host put us in touch. One thing led to another. We raised some money. And at that point in time, the money we were raising was for some, shovel ready, you know, large Bitcoin mining projects. And we had a slight slight snag which is by the time we finished raising the money, this is, you know, mid 2021, it wasn't enough to build them. So we said, oh, this is a problem. What are we gonna do now? And so, Will, the the founder, had a good idea. He said, look. Well, Compass is doing they're growing really fast. It seems like they've got some chinks in their armor. Like, why don't we go approach that market? And so I said, you know, give them my rooftop solar background. Whereas overseeing, like, hundreds of of systems being built across the US each each month, I said, you know, I think I've got the skill set to do that. So, I took on the operations. He took on the the point of the spear in relationships, visionary side of things, and we started we started jamming together. And, now now here we are today, we've built what I believe is the easiest way for the normie to, to mine their own Bitcoin.
And the beauty of the process is that it's it's at a discount, you know, as compared to the exchange price. And so, you know, the average Joe can DCA their way into Bitcoin, via a mining based experience and wind up, you know, saving about 20 to 30% on on, on the stats that they receive through the process.
[00:05:56] Unknown:
And is it is it KYC ed?
[00:05:59] Unknown:
Well, no. We have to have contact information so we can talk to our customers. Mhmm. But that is all we need is just to be able to talk to our customers. Because if you look at what we do, we sell a server and we service that server. So, you know, we don't have a lot of regulatory oversight like an exchange might.
[00:06:18] Unknown:
Okay. So that's pretty exciting. And then so, obviously, we just had the halving, you know, a couple months ago. How has the the landscape shifted for your business and for people who are looking to get into mining at this point?
[00:06:32] Unknown:
Yeah. Well, I mean, it has. Right? You know, it's gotten more competitive with the having. So our first of all, I think it's worth describing how SAS Mining makes money in the Okay. Great. In this. So, when clients come to our website, they buy a mining rig, the same way that you would any other, like, ecommerce type of product. Right? And then we get it procured, we get it shipped to our data center which is right now in Paraguay. Got very low cost excess hydropower that are powering, that's powering our data center there. And, once it's plugged in, a client will sign up and and get their service plan set up to pay for the electricity.
And once that occurs, the the hash rate is directed, to the client, and they start to accrue rewards that get sent directly to their Bitcoin address. Now we set it up such that we don't make money any other way than the way our clients do. What that means is that when we sell mining rigs and we sell the the electricity to power them, those are costs. And so what we do is we instruct the mining pool, and and for us that's Luxor right now, and we will add more in the future. But we instruct the mining pool to simply split the block reward when it's paid out. So we receive just 15%. And what's beautiful about that is it makes sure that we have the exact same, set of incentives as our clients do. And that means that we're going to make the the type of decisions that our clients want us to make. Like, hey. How quickly can we get your rig plugged in? How do we make sure that your rig is up as long as possible? So, in back to your question about what's happened after the having. Right? Like, we've had the same experience our clients have. Right? So, their amount of, Bitcoin rewards cut cut in half just as ours did. And so, you know, we've been we've been working through that.
What I see is historically that this is the, the hardest time to be a miner right after the the the having. Mhmm. However, historically, it has been the best time as soon as this time period is over. Right? This is when the price likes to go and when the price goes faster than the difficulty of mining rigs, increases, then there's a a large profit opportunity there. And so even though the value proposition doesn't look particularly great at the moment, our our clients are still mining profitably and set up for when that, when that opportunity occurs. So really at its core, if you don't believe in the price cycle of Bitcoin, it probably doesn't make sense to mine. But if you do, it's it's one of the the best opportunities, and ways to acquire Bitcoin.
[00:09:15] Unknown:
And then as far as you know, because you you brought up Compass and they obviously had some issues in the past. And like you said, obviously, business is business. We wanna be entrepreneurs and go Mhmm. Be competitive and obviously try to constantly create better products and services for the market. Since you're just in Paraguay, how is it there, like, as far as a a single point of failure for, let's say, the government decides they don't like that you're doing this or there's a hurricane or whatever. I don't know if you get hurricane storm or, you know, some kind of natural disaster that, you know, I may I guess, in general, like, you have you've gotta put these servers somewhere physically on earth. You know? Yeah. So, it sounds like this is the best place that you guys have decided. So how do you how do you make sure that, you know, people that got their their booties covered?
[00:10:08] Unknown:
Yeah. No. That's that's an important one. So, I I I'm a big believer that, incentives are more important than laws, because that's what people are tend tend to to follow. It's kind of like, incentives or like gravity for people. So what, what so just to back up a sec, we operate in Wisconsin and Paraguay. So we're not just in Paraguay but we're full in Wisconsin. We chose Paraguay because of the incentives and the incentives are quite unique. Basically, Paraguay and Brazil, they share a massive dam that generates about 14 gigawatts of power. It's called the Atapu Dam. And the way it was arranged between the two countries, they were to split the power that comes off the dam. So 7 gigawatts each. The problem is and and this dam was built started to be built in the the early seventies.
You know, World Bank IMF type of project. Right? Now the problem is that Paraguay can only use today about 2 gigawatts of that power. And so here you've got this massive amount of excess power, and I'm talking like a Texas sized opportunity. Right? Wow. For power, It's all clean. It's all hydro. It doesn't matter where on the grid you are, but it's excess. And so I saw that I you know, we were evaluating, hey, you know, we filled up our Wisconsin facility like the first half of last year, and we said, okay. This model is working. We wanna keep growing. Where should we go? And it was right at the time that the Biden administration was looking to put a 30% tax on mining. There was some legislation going on in New York. Texas had some legislation that could go through and we just said, you know, this is probably a good time to consider this Paraguay option right now for our clients.
So we we leaned into that because the electricity price was was very cheap. It's all clean. And the incentives were such that I said, look, at at the end of the day, you know, politicians need to be voted into the office, and the best way to get voted into office is to provide economic opportunity. So if if we can take this excess power that they've been selling to Brazil at a loss and we can change it from being a liability into being an asset for the the GDP, well, shoot, that's gonna equal votes, that's gonna equal politician support. So, indeed, actually this year, it came up where there is there was a small set of politicians that actually attempted to put a 180 day ban in place on Bitcoin mining. And that action beget a much bigger reaction and now, the, the the which is the name of of the fellow, it's the economic ministry, the head of economic, the economic minister. He's come out and said, no. We wanna sell all the excess power to, crypto miners, which is just means Bitcoin mining. Right? Because nobody can say Bitcoin directly.
So anyhow, that's quite exciting. Say Bitcoin directly. I don't get it. Be well, I think from a political standpoint, you can't single out one technology. And so the best way they can talk about it is crypto, but they just mean Bitcoin because that's where all the electricity is going. It's And so how much at this point of that extra, I think, 5 gigs? You said 5. Right? Yeah. 5 gigs.
[00:13:24] Unknown:
Like, how much is, like, getting consumed right now by Bitcoin miners?
[00:13:28] Unknown:
That's a good question. I'm not entirely certain. What I do know is that, 2 to 400 megawatts of it was being illegally mined. And so in the last month or so, there's come out some some clamp downs on some illegal mining. And and I think it's actually worth talking about for a minute because Yeah. Yeah. There was a lot of lost in translation on Twitter about, the the mining means. Yeah. Everybody thought they were shutting down, Bitcoin mining and it's like, yo, you guys, this is a good thing. What you don't realize is there are parts of this world where people will just go on and go out there and throw jumper cables on the electric lines and steal the electricity. It's quite literally theft, right? And so, these folks are given a bad name to the rest of us that have contracts that are doing everything above board and and upright. And so, cracking down on that actually is good because it makes our our industry, healthier. And so that's what's been going on is cracking down on that. And there's about 2 to 400 megawatts of illegal mining they estimated in, Paraguay. So my guess is we're probably pushing about a gigawatt
[00:14:36] Unknown:
of of power consumption at this point by the Bitcoin mining industry and the government. All the Bitcoin miners down there, all the companies. And so how many other who's your competition down there?
[00:14:45] Unknown:
Well, I mean, that's a that's a You know what? A pretty thing about our so so Penguin has probably got the biggest name. They're a specific, Paraguayan operator. They've got a big operation. You know, Marathon, Rioter are are moving in. And I know some of the other folks are too not, you know, don't feel comfortable disclosing, but a lot of it has been disclosed, publicly by, like, free the equivalent of a Freedom of Information Act. Mhmm. So there's you can you can go see how much people are paying for power, etcetera. It's been published in the local newspapers there, but it's quite it's quite interesting to see folks moving in. And I think that, you know, we're past the pioneer phase of of Paraguay at this point, and now it's starting to move in to kind of the settlers that come in behind the pioneers and and sort of, settle the landscape. And I feel like that's where we are in in the mix. But, you know, from a competition standpoint, you you mentioned Compass earlier and just to just to, tie into that for a sec, like, I I think of Compass as our inspiration but not our competition, because we offer mining as a service which is slightly different. I can go into the nuance of that. But then secondarily, what I've realized is we're competing with the exchanges because if we do our job right with the software experience that we're building, we're gonna naturally bring people away from exchange based acquisition and instead choose to, acquire the Bitcoin the native way, the way Satoshi designed the network, which is through mining.
And it it to date, nobody's really focused on creating that user experience. And it's not easy, and I get why a lot of people sort of ran away from it to make it easy and intuitive, you know, on par with, like, an Uber type of experience for for ride sharing, but that's our aim.
[00:16:32] Unknown:
And and how you know, because I love this obviously concept of getting not going and buying off the exchanges and how can we get our own stats, and how can we help support, you know, strengthening the network this way. What is there financing available for people? Like, is that a whole I mean, that seems like a whole industry in and of itself that people could go finance the rigs.
[00:16:52] Unknown:
So my answer to that is you can, and and I do think some of our clients are doing that. So you can go to a Hodel Hodel, you know, one of these places, post your Bitcoin as collateral, get USDT, and we accept that as payment, and you can grab a mining rig from us and and start accruing Bitcoin. Right? But we have not integrated that directly into our platform, and we've got some ongoing conversations, and I hope to not with holdah, hold on. I don't wanna create any rumors. But, you know, what I think would be really nice is if we if we could offer financing because, you know, the upfront ticket price to buy a mining rig because clients that own the mining rig, we just have possession of it. So they've got the serial numbers all the way through, our system from from from the mining pool, all the way through to our platform.
But you can't we can't sell less than a mining rig. Right? And so the ticket price of getting started with us is the cost of a mining rig, which is between $25155100. Right? That's out of reach for a lot of people. And so clearly, there's an opportunity there for financing to to bring that upfront cost down. Yeah. It seems like it would be beneficial for, you know, to have
[00:18:05] Unknown:
that for all of us because it's like, oh, I wanna get 10 rigs, but I don't have $50 sitting in my bank. You know? Yeah. But I can you know, I've got some kidneys lying around here.
[00:18:16] Unknown:
Yeah. Let me let me let me just go to black market there and sell one of these puppies. I don't need puppies I need to.
[00:18:22] Unknown:
And and as far so okay. So that's obviously your first your capex. Your first expense that you're gonna have is, you know, getting the rigs. So electricity, obviously, is the, you know, your your variable. How do you guys is everybody there getting the same price for this electricity? Are you all negotiating differently because maybe you're gonna say, we're gonna commit to buying x amount of this excess hydroelectric power, you know, because this is what our company we think predict we're gonna use versus this company is like, we're gonna buy this much, so give us a discount. Is that how electricity buying works?
[00:18:57] Unknown:
Well, not quite. We've got arranged a a fixed price for power for several years. And so we just pass that through a cost to our clients. We do add a very, very small amount to cover maintenance. We don't have to bill for repairs with the the mining rigs. Cool. But that's that's it. We just figured, gosh, you know, going through the billing collection process for need to repair a fan or power supply goes out, it's not worth the hassle. Let's just assume an average cost across the mine and and and bake that in. So our costs actually are kind of like a a warranty as well because we're gonna cover all the repairs, for your mining rig throughout throughout. And then what's the energy cost per kilowatt hour?
4.7¢. Oh, that's pretty good. And it's green. That Yes. And it's hydro. Yeah. Yeah. I like to think of hydro as the, the the equivalent of, the fireman. You know, nobody nobody hates the fireman. But, in the same way from an energy source, hydro, nobody hates hydro.
[00:19:59] Unknown:
I know. It seems like I I I'm sure you've seen this image of the the floating solar panels that just completely got annihilated in something, and you're just like, oh my gosh. That's not good. And, obviously, a solar guy, you know, like, what so what's your what's your experience moving from solar to hydro as far as, like obviously, there's 2 totally different ways of, like, here's this whole chunk of, you know, these panels versus here's this elect hydroelectric dam that we're dealing with. Like, is this a better way to get green energy for people in sustainable ways to mine?
[00:20:33] Unknown:
Well, my answer is pretty nuanced on this. So the the through line in my career is is not obvious, but it's actually helping people be sovereign.
[00:20:43] Unknown:
Mhmm.
[00:20:44] Unknown:
So with rooftop solar, and this is specific I I use rooftop solar, specifically because the panels we were selling were almost exclusively going on people's roofs or maybe in ground mount at their home, but it was helping homeowners become sovereign because they were able to generate their own electricity, you know, spin their meters backwards, and and that was always a very empowering moment to help homeowners turn on their their solar systems. And I find that there's a similar empowering moment that occurs with our clients when they've received their first stats in their wallet. It's kind of like, oh, my gosh. You mean this came directly from the network and I did this? It's kind of a little a little little little little little dance that the clients go through when they realize like, Hey, this is mine, you know. And so that through line of empowerment, I think, really motivates me and and I find exciting because there's, like, what I believe that we're building actually is the most potent, social layer, or portion of the social layer of the Bitcoin network because it's it's folks out of skin in the game. They understand Bitcoin, and they have a sense of ownership in Bitcoin itself, the network, through the ownership of their mining rigs. And it's hard to understate, how important that is. If you look at the group that has done the most in the US for protecting the Bitcoin network, there's a strong argument to be made that it is the Bitcoin net miners, and it's because of all the capital they've invested. Yeah. There's some of the biggest contributors to the lobby groups that are educating our legislators and and and keeping, the legislators from, you know, throwing a gutter ball here on us, with with how they regulate the the Bitcoin industry. So, yeah, the more folks that we can get mining, I think, the the healthier the network will be.
[00:22:31] Unknown:
And what has been an obstacle for, you know, in your experience to people understanding, especially, you know, legislators and, you know, people out there who don't really get why Bitcoin is going to help create, you know, these jobs and this economic opportunity. And to me, obviously, my whole thesis is Bitcoin is a tool for peace. If we don't have peaceful money, you can't have a peaceful world. You're gonna have all of these things with the family breakdown, with mental health breakdown, with your society, with wars, with the endless fiat printing of, you know, bombs, etcetera. And so, how can what have you come across as, like, the biggest thing where people are just like, no. No. No. And then they finally get it that why that mining is so important.
[00:23:15] Unknown:
With mining. Oh, yeah. I I thought you were asking me what my, my strategy is for orange pill people because I've still not figured that out. I picked up my first bin quite in 2015. It's just it seems like, I do have a theory on that. I'll I'll come back to it. But, no, the, the, you know, I think as far as getting to people, without aligning, I it's not easy. You know? It's you know, Brandon Quidham is an adviser for SaaS Mining, and he's got a quote that I absolutely love, which is, you know, Bitcoin mining takes everything you, everything you're wrong about.
I'm saying it horribly. The basically everything you know about both money and energy, that you didn't know, like, you have to then know, right? So it's it's kind of it's kind of complex and it's outside of people's purview. And I I just like to explain it as simply as possible as you're taking electricity and you're converting it into Bitcoin at a regulated rate. Right? And and you don't need to know more than that, but I think the concept of being able to create Bitcoin out of this mining experience, it does sort of create a bit of a bork in people's heads that cause them to just stop and not look any further. We hope to change that over time, but I I do think that, it seems mystical to people.
And, you know, frankly, I I think it's fascinating and it is kind of mystical, but I understand it. And so it doesn't seem like this. You know, it's what do they say about, something magic that, like, once science understands it, it's not really magic at all.
[00:24:45] Unknown:
You know? Yeah. And I think I think Bitcoin mining fits in that same bucket. I know. It's like I'm just looking at the screen. Right? I'm like, is Kent behind this meme? Like, where is he? Oh, and how is he here? You know? But at first, you think it's like if you've never seemed experienced, you're like, it is. It's like this magic thing. It's like, no. It's electricity and and signals and light and all these things. So it's it's it's important that we get educated. I know I was out at dinner last night and, you know, it's all you know, when you were saying about what's your orange pill strategy, you know, we can chat about that. It's like, it depends.
It always depends. Who's your audience? Who are you talking to? What are their pain points? Any kind of marketing that you would do, you think, like, what's the person's pain points? What do they understand? What are they missing? How do you get them over the bridge a to b, etcetera? And so there's no one conversation that is gonna be the right there's no cookie cutter size, you know, orange pill conversation. You know? Like, some people are so excited about electrifying villages so that they can, you know, have a light bulb, you know, to do surgery with. Right? And other people are like, oh, I care about human rights, or other people are like, I care about separating money from state. Like, you have to know who you're talking to before you can really have intelligent conversations, I think. So I think it yeah. It depends.
[00:26:04] Unknown:
Yeah. Yeah. No. And and and, you know, at the at a core, I think the the longer you're in Bitcoin, the more you stare at it. I think the the deeper the truths are that you realize. Right? Like and the more you stare at it, the more it, like, stares back at you and, you know, it's a it's a weird it's a weird process that that one goes through. But, the what I've kinda come to at this particular point is that we're actually like the the beatniks or the the hippies and or or on this, like, civil rights journey because the freedom to transact underlies all our other freedoms. Right? And if we don't protect that, then ultimately we're going to lose, other freedoms along the way. And so, you know, I I think of, Bitcoiners is actually the new civil rights movement.
Totally. At its core, and I wish we would lean more into that as a community and talk about it because I think the civil rights angle resonates a lot better with folks than, than anything else. I at least that's been my experience is like the human rights side of things. Like all the the good things that Bitcoin can do when people see that, they they tend to say, Oh, okay. You know, the the rational like which I'm prone to do, tell people the history of money and how this is better money like it sort of it sort of makes people class over just turn sideways but you know when I talk about what Eric is doing with gridless out in Kenya. Yes. Wow, that's super rad. Like let me get involved with that. Right? So I don't like you said, there's no there's no one strategy, that fits all people. But I I will say it's it's really interesting living in a in a place like Peru. So, you know, I I think I was mentioning to you. I live in the high Amazon here, which is an unusual place talking to you over Starlink. You know, technology has made life possible. And I I moved here because of my wife's work. Right? This wasn't for for SaaS Mining. But, it's really interesting to see how people here understand Bitcoin from, like, a monetary standpoint much easier.
But the technology side is is kind of more confusing. Right? Like, the private key management that is is difficult versus, like, I feel like in the US perspective, like, understanding the monetary side is the more challenging bit versus the the technology side. Hey. No problem. Like, I can I can write down 12 words? You know? So it's really interesting how there's, like, different dynamics in different places, not just like the process of orange peel, but also, how to actually use Bitcoin. Right?
[00:28:30] Unknown:
Yeah. And I think here, obviously, in the States, it's like we're because of dollar hegemony everywhere, it's like we're conditioned to trust the dollar, trust the central bankers, trust the Fed, trust all the nonsense. And just like we're conditioned, you know, I say we, I don't include myself anymore after my skin has turned orange. But, you know, from the medical profession, right, you're a lot of these folks are they entrust their health to, you know, this the the the Western medical doctors, which it's just like, oh my god. Question everything and learn about how your operating system works. You know? And so a lot of us, because we're so tired and exhausted and because the fiat system is a shit show, we don't have time to go investigate these things. And so you're just exhausted, and you're like, well, I guess this is okay because these people say so because they have more power, more letters next to their name, or they have more money. So I have to trust more letters next to their name, or they have more money, so I have to trust them. And then I'll just be exhausted and go back to my 3 jobs, you know? And so it it's such a mess. Right? And so I think we're we're we're so lucky to have gotten into this rabbit hole, you know, because it does open up all these other perspectives and all these other areas of life of like, well, what else is bullshit out there that we've been told to believe so that we comply.
You know? I I just I love being in this community. I feel like it's the biggest blessing for sure. Next to my kids, it's the biggest blessing in my life for sure, my loved ones. And, it's it's amazing. So let's talk about loved ones, Kent. Yeah. Let's talk about raising daughters on a you know, with Bitcoin values. Let's let's hear this. They wanna I loved that you put that in your your, your messages to me. So
[00:30:21] Unknown:
Yeah. Well, I I'm gonna have to I'm gonna have to go back to the the the sovereignty, side of things. So I I I did I did grow up on a farm, and so kind of just having hands in the dirt as a kid and having to problem solve and do these things, it was just always, you know, take take maximum accountability Mhmm. For your actions, you know, which is, like, when you're more connected to reality, like, you know, your actions, in the direct feedback you get, like, okay. You you got to be accountable. There's nobody else in between you and reality. Right? And so farming was a bit that way, and then also you realize the element of chaos of the weather and how you can't control everything, but, you know, you do your best to manage. And and so I think that that that both led me to realize, like, most people, did not grow up on a farm and and didn't have that opportunity to get that sense of of harmonizing with the planet in reality. And so, my sense is that with Bitcoin, we can get closer to that. I I believe that fiat has untethered untethered us from reality, because it doesn't obey the laws of physics, and I think we see that as society on board right now. And so living here in the Amazon, living in a place where people are living simpler, less connected digitally, and more, connected to, you know, just the elements around them.
Yes. It's not as well off. A lot of folks aren't here, but I think that there's lessons to be learned, by living a simpler life. And so that's part of it is is trying to create and instill, like, levels of accountability, in in children. So, like, you know, I've got a 6 year old daughter and and, you know, up until recently, she would pilfer a few, Soles. I live here in Peru. Off my desk, and the currency is called Soles. And she'd, you know, take the coins. She liked to keep them and stack them in her in her, piggy bank. And, okay, that's that's fine. And then all of a sudden, she tore the piggy bank open. I realized how many Soles are there. You know, she wanted to go buy a toy at the market. Okay. Great. You you can buy a toy on us once, but, you know, next time, like, how are you gonna earn this money? You know? So making sure that she understands where the money has to be worked for, and can't just be, given away freely or you don't value it. And so funny part is, I was like, hey, Naya. You know you took all this. Right? And she's like, oh, I don't I don't wanna steal this money. So she gave it she put it all back on my desk. So now I've got a big stack of Soles on my desk, and she's she wants to know how she can earn it. Right? So that was a that was a proud proud papa moment. I know. I was like, wow. I'm always gonna cry. You're good.
Yeah. Yeah. That was a proud papa moment. I was like, oh, she gets it. She gets it. You don't just take. So, yeah, I think those are the sorts of value though, you know, getting getting into a you make yourself accountable and and she is I mean, I got lucky through the the course of the life that we live. She was born in Portugal and and I've got another daughter that's much younger, still kinda baby mode. Right? So hard to see how she's developing, but my 6 year old got lucky to grow up with, you know, 2 different languages in the house, Portuguese and English, and now being here, Spanish. And so she is a very confident and independent, little critter running around just talking to everybody in whatever language they speak.
That's awesome. Which is, yeah, which is pretty fun to see. So, yeah, that instill in that accountability, I think, leads to confidence, internal confidence, and a sense of purpose out in the world. So, yeah, these are some of the ways, but I'd love to hear, how you are doing the same with yours.
[00:33:53] Unknown:
It's it's, you know, one of the gifts of of having young children like you is you don't have to unteach them anything. Mhmm. That's true. You don't have to deprogram them. Same thing with all of us adults. Like, the longer we have been here on earth and we've been calcified in our thinking, it takes a lot to undo that, especially, you know, I was talking with James Lavish, and he was talking about his, you know, his old hedge fund dudes in Wall Street, whatever. And it's just, like, so difficult to get this concept around their head, especially when, you know, the old system is what's paying the bills and luxuriously for these guys. So it's like to sit and try to go, nope.
This is the way. It's really, really tough. So I think the further along you are on the journey, it's more difficult. And so my children are further along on their journey because they're teenagers. Like, my daughter's going to college in a month and a half. And It happened down. But she's not going too far, so that's good. She's staying here in Boulder. You know, and my son's gonna graduate in another couple years. So he's starting to get into Bitcoin, which is super, and he's, like, really excited about it and not as excited as I am because I'm crazy. But, at least he's not pushing back. You know? And, so he got Bitcoin for his birthday, and he's been investing. So this is cool. But my daughter is just like, I don't care.
So I just I don't push because the more I push, the more she goes like this. And so, again, know your audience. But I wanna ask you this. Are are you familiar with, the lightning piggy project? Oh, you know what? I think I read something from some of your work, but I have not talked to anybody about it. Just read a tweet here or there about it. So please. Yeah. So well, it's so cool because I Richard and and the crew over there, they were actually in Madera at the kids' zone area. So they had a little lightning piggy thing set up. I got to meet him in, El Salvador a couple years ago, and they were starting the project. I was like, oh, this is great. We need lightning piggy. And so it was like, you know, the 3 d printed pig, and then there would be the display that would show how many sats were in a child's wallet. And then, yay, look at this. So that's their piggy bank. Well Yeah.
So preview you know, my ex husband was you know, he still runs a fund. We started together, but he was always way more, you know, adept at finance than I was, even though I worked at Deloitte and I have an accounting background. I'm just just because you can doesn't mean you should. Fair enough. But but I still have that mind. I'm always thinking of, like, how to tinker and build products and stuff. And so I was like, like, 20 years ago, one of my nephews went to his, you know, mom and my sister-in-law, and he was like, can I have the credit card to go buy some video game points? And I was just like, why are you giving him your debit card? Like, what if he goes and, you know, buys a jet or something, you know, whatever?
Right. There's just like, well, I'll know later. It was just something that I was like, well, isn't there a better way for us to, like, have kids learn about, you know, financial literacy? And Mhmm. Knowing what we know that most people don't have great financial literacy, adults included, I was like, well, what if we created some kind of a financial literacy education model, but then also tied it to this was a debit card at the time, and this is going into lightning piggy, so there's actually a thread here. I promise. But I would like I was like, well, what if we did something where you had, like, this wallet and any money that comes in, you will have, like, a quarterly planning session with your family, and then you will decide what goes in these 5 buckets. I call them buckets. And so it's the 5 disc model. It's donate, invest, spend, college, and save.
And so college obviously now is god knows what's going on there, but just we'll call it education. But so so let's say whatever. So you get a $100 that goes in for your, you know, allowance or Christmas or whatever. You can say, okay. I wanna put 5% and donate or 10% and donate. I wanna invest 30%. I wanna save for a bicycle long term. I'm gonna put, you know, 10% in my education fund, and then I wanna have, you know, 10% in my ice cream, you know, short term spending thing. It's kinda like what you do typical financial planning but for kids.
And then okay. So every time somebody gets, you know, grandma sends some money for the holidays or whatever, it's all gonna hit that and then it does the splits, right, automatically. And then instead of just piggy lightning wallet seeing one wallet, you see 5. You know? And so you'll see what's going on kind of like you would do with an EQ, like a an equalizer for, you know, music and like, okay. We're up here at our goal. Our goal is to get to this many sats. And then if the kid is like, oh, I think I wanna go buy some ice cream. I'm gonna go spend some money out of this wallet. But then they realize they're this close to getting the goal for their bicycle. And they visually can see, like, I'm almost there.
Maybe I'm gonna transfer my short term account and put it over here into my spent you know, my long term savings or whatever or invest or donate. And then parents could get a trigger that says, hey. Johnny, you know, decided that to do the right thing. Do you wanna match what he just did? Or double you know what I mean? And so there's all Oh, gamify this thing. I know. Right? Exactly. So gamify it. Make it fun. Make it interactive with your family because, you know, so many people in the past, it's like, don't talk about religion, don't talk about money, don't talk about politics. I'm like, this is why they're all, you know, can cause problems. So I'm like, let's talk about money in an intelligent way together as a family. So so, you know, I've been talking with Richard for a while, and I'm like, let's see if we can build this interface and because now you can do splits easily with Ellen Ellen Bits. And so, yeah. So that's like a fun thing to do, and you can do it all ages. And once the kids outgrow the pig, then they're like, oh, I like Taylor Swift. So 3 d print Taylor Swift face and give her all things. You know?
But it's like you give that autonomy and that engagement and that touch and feel, like, you know, you were talking about with doing the mining. You know? And we can do stuff we've got with your kids, and then you get to engage with what are their dreams. Oh, they wanna go save the llamas. Okay. Cool. Maybe we'll go on a llama family vacation or something. You know? Like, it opens up so many doors for connection, you know, with your family. So I think it could be an interesting project. I'm gonna pitch it to Wolf, the Wolf Accelerator and see if they wanna help build it out.
[00:40:29] Unknown:
Heck, yeah. I'd love to see it built out. That'd be fun. I think I think I think the I would love to use that with my daughter. Right. And I just I just think the one caveat would be that the biggest,
[00:40:39] Unknown:
the biggest percentage would go to ice cream right now. So I mean, right now exactly. And that's the thing. She's not in there worrying about the llamas just yet or whatever or her her PhD. Yep. She's like, I really need those sprinkles, dad. No.
[00:40:55] Unknown:
No. No. No. Ice cream is the biggest thing. When you live in a hot environment like this, it's, it's, oh, it's critical every time. Coconut ice cream?
[00:41:04] Unknown:
Yes. We do have coconut ice cream. That is that is a favorite. It's so good. I know. We used to live in Hawaii, and they had, Coconut Glens. And you drive out there, and he had all the just giant coconut farm, and you would just get the best coconut ice cream ever. It was so good.
[00:41:20] Unknown:
Yeah. There there are advantages. There are disadvantages too to living in the Amazon. There's, there's everything is a bit bigger here, you know, including the insects. Oh. And I'll have to learn how to adapt to that. What's it been like? I mean, so how and you've been there for how long? Because I've been here. So we officially moved, the beginning of last year, but we did a trial year, for that just to see if this was something we we wanted to do. And so, yeah, I guess we're closing in on 3 years at this point in in total. It's been an adaptation.
The biggest part has been, just getting a home for ourselves built because, you know, most folks do a very simple building style here and that is not very comfortable as a Westerner. And so finding folks, getting the house built, that's been the biggest challenge. But now we're in, that's beautiful, helpful, and, and, yeah, just adapt. You know, after a long enough period of time, my Spanish has gotten much better. That's helpful too. And I think just the the creativity that comes with learning another language has been really helpful, you know. You have to what I've realized is when you when you deal with multiple languages, you don't always have a direct translation for the way that you want to say something. And so you've gotta get creative with the words you do know to get the same idea across. And I think that that that causes a little bit of, flexibility in the way you think in general and can just lead to different neural pathways.
And then I noticed like it just you can think a little bit more dexteriously on your toes.
[00:42:55] Unknown:
I like it. I know I that's one regret I have is not learning a second language from a young age, you know, and I feel like my kids know some Spanish. You know, they've had to take Spanish for years years. But, I think, you know, same with music, it it touches these different parts of your brain in these neural pathways. And so and then that applies in other areas when you do have to problem solve and think and get creative, you know. Yeah. And so, so I think it's super cool. What's the biggest, craziest bug, insect, creature, critter, snake thing that you've seen that you're like, oh, god?
[00:43:31] Unknown:
I I think, so tarantulas seem quite quite a few of those. And and and, yeah, and so so those are those are common. And and when they come in your bedroom at night, that's that's particularly, yeah, that's particularly problematic. But I actually think, you realize that they're actually pretty peaceful, docile critters, after a little while. Like, they're Why do we get them out? It's like you broom. You just you just get them they'll just grab on the end of a broom, and then you hop through the door. You know? So it's not you're not having to kill them. But there, there's some in there there are some spiders that are that are big that we do wind up just okay. Sorry, bud. You came in the wrong house. Yeah.
[00:44:10] Unknown:
You do the little stare and moan, and you're like, okay. You this is your zone and this is our zone. And, yeah, don't cross the zone.
[00:44:18] Unknown:
Yeah. But but we do have, like, bullet ants here, which are which if you don't know what the bullet ant is, it's it's it's an ant. It's about this big, and it's got a venomous tail on it, and it's supposed to be the most painful insect sting. They're not particularly aggressive, but you seem crawling around the ground sometime, but they apparently, if you do get stung by them, it feels like a bullet. And so that's that's what people say, the pain lasts for 12 to 24 hours and even locals will go to the hospital for pain relief. Doctor. Wow! Doctor. So that's that's an intense one. And then, so thankfully, you know, 3 years, I've not been stung by one of those. But there is, you know, you've got the common cockroach, but then there's like these jungle cockroaches that I'm not kidding you, are like this big. And they don't really come indoors much, but you'll see them like crawling around the leaf litter. And every once in a while, one will get indoors, but it is something else to see, you know, a cockroach the size of a small puppy crawling. So Oh, god.
Yeah. So that's the downside of living in the Amazon. You get you gotta get used to big critters. But the weird thing is because they're big enough, it's almost like you can see their personalities, which sounds like, having, like, stick bugs, like, this big, like, going walking around. You're like, oh, do do do do do. Yeah. Exactly. Exactly. The time playing in your head when you're watching them move. Yeah. You just you just kinda realize, oh, okay. Like, like the cicadas, like, they're they're all over the place. And you just realize those suckers are dumb as rocks, and they just keep bouncing off the same wall over and over again. Can't see straight. And anyway, so it's it's funny to interact with the wildlife.
[00:45:57] Unknown:
I bet. How do they how does your daughter and the younger one may not have as much interaction. Does she appreciate seeing these things?
[00:46:04] Unknown:
Oh, yeah. I mean, she doesn't really so we started coming here about the age of 3, and for her, it's just normal. Like, you know, my my mother's in town at the at the moment so we we went on a nice, jungle hike the other day and my daughter just rips off her sandals throws them off to the side and just goes running through the jungle like it's nothing. Oh, wow. Yeah. You are growing up a different way. That's the best way. I know. When we lived in Maui, my kids were 35 when we moved there. We got to live there for 4 4 years, I think, a little over.
[00:46:35] Unknown:
Not long enough, of course, but just having that young age where they it's just like you spend most of your time outside. You're not afraid of all the little things that are out there. We didn't have as many big creatures as you guys did. That's one bonus about that island, or any of the Hawaiian Islands, in fact. But, yeah, it's just it's a it's a blessing, you know, to get to be there with your family and feel like you're back. It's sort of like now instead of your farm, you've got this jungle that is, you know, similar but obviously different.
So, okay, so let's talk. What are the plans? What do we got? What do we got going? Is SaaS mining doing anything in the future that we should all know about that, you know, are you going to any events? Are you gonna go to the Nashville? Are you going to Pacific Bitcoin? What you got going on? All of the above.
[00:47:22] Unknown:
Yeah. So, I'll be at Mining Disrupt next week. Nashville, the month after that. Fairly certain, although I haven't committed to it yet, fairly certain I'll be I'll be at, Pacific Bitcoin as well. Cool. Those are the events on on the horizon, for me personally and and representing SaaS Mining, of course, that's that's where I'm going. Well, I mean, I I I do love hanging out with Bitcoiners, so that's actually the the real motivating factor. Right? Family reunion. This role. Yeah. Family reunion. Exactly. Yeah. You gotta you gotta go sing sing with the choir to, to come back rejuvenated. Right? Wow. So, that's on the horizon. As far as SaaS mining, I think we are going through an interesting year where as an early stage startup, especially, it's dependent on software. So that's really what we've done differently as we've come to this marketplace and let's say, look, if we're gonna deal with 100 of customers, we've gotta build a software solution to manage all the invoicing and the billing, the the, the payment rails with integrating with credit cards, with, Bitcoin, with, USDT, like, because people wanna pay by a variety of different mechanisms. Mhmm. Being able to monitor and and and and fairly track, energy consumption, being able to display it on a way that helps somebody see it real easily.
What we built through, like, our MVP process was, like, January of last year. I mean, we just kept building, building, building as we realized what clients needed and we're asking. And we got to a certain point at the beginning of this year where we realized our software was basically put together with Bubblegum and BailingWire at that point. We said, Okay. We gotta take a step back. Let's go take what we've learned, digest it, go go rebuild from the ground up so we've got a scalable foundation. So we're going through that process at the moment. So our feature set has not been as great as we were able to deliver last year, but that process should be over by mid July. And at that point, we're gonna be able to start running a lot more quickly. And there's there's a lot that we want to, add on and offer to our clients to to make it an even better experience such as, you know, having, like, clear notifications through the system. Hey. Your mining rig, is down right now because we got a bit of curtailment.
You know, just so people don't have to ask. If we do our jobs right, clients aren't gonna need to contact us is what I've realized because all the information will be at their fingertips. And, of course, we love to hear from our clients. I'm not saying we don't want to be contacted, but it's quite difficult to manage everybody's individual mining rig in such a way that all the information is transparent. And we're doing what nobody has ever tried to do before as well. So there's not really like a a road map for what we're building except for to just listen to the market and and take that feedback in and and try to digest it and and turn it back into, very, very useful design. So it's it's a fun challenge and one that my entire team is motivated by. But, yeah, it's so that's the future for SaaS Mining, and none of that financing, I think, is is quite high on the priority list as well as integrating some other mining pools.
[00:50:26] Unknown:
That's what I was gonna ask you about, other mining pools, like the different you know, I keep hearing about ocean mining and all I don't know. I'm not a miner yet.
[00:50:36] Unknown:
Yet? Yeah. Well, I'm gonna talk to you about that. We gotta we gotta change that.
[00:50:40] Unknown:
Hey. I know a guy. Oh, no. I know. I'm like, I'm I'm excited. I wanna start you know, I think it's just if anything, you know, get your first couple stats under your belt and start playing. Right? Get your first miner and start getting excited. You don't have to go buy a 1,000 miners. Just get one.
[00:50:57] Unknown:
Right? Yeah. That's right. That's right. That's that's what I that's my argument right now is just just get a mining rig, diversify how you're acquiring Bitcoin. Right? So I'm I'm not saying to diversify your investments. I'm just saying diversify how you acquire them because there's different counterparty risks. And by the way, you get a better bang for your buck, with this because if you're mining at a discount to the exchange price, well, your dollar goes further. Right? You get more sats for your dollar. So it's it's worth at least dipping a toe in the water. Yeah. I think so too. And it's fun. I know I had somebody come over.
[00:51:29] Unknown:
Tyler is doing a lot of heating reuse, and I know you said you kinda delved into that part too. And, obviously, we can go get the plug and play heaters. I obviously, Boulder, you need heat 8 months out of the year or 9 months out of the year. And so we're talking I live up in the mountains, and so he's just like, oh, propane's really expensive, and you can use electricity instead and do all this. So it's just I'm like, okay. Maybe I can do a little here, a little of the you know, it's just like all these different interesting ways, like you said, diversify your stack your stacking methodology.
Mhmm. That's right. That's right. I love it. It's so cool. Well, I love this conversation, and you're awesome. I'm so glad we finally got to to connect and, you know, talk a little bit about what you're up to. Can can we come visit, like, if we wanted to go do a site visit and, and check stuff out? Is that a possibility?
[00:52:22] Unknown:
Oh, I'd love to say yes to that question, but the truth is no. The, in Paraguay where we're mining, discretion is the better part of better part of valor. So we've actually got, you know, a 10 foot high fence that goes clear around the entire property, all brick and then electric fence on top of that, a guard. Security cameras. So it's just not not safe or wise to, to let it open to the public or mining. It's it's a lot of valuable equipment. And so, yeah, in very select cases, we do. But for the most part, the blanket answer is no. I'm sorry. But I'll send you pictures. I'm happy to. Cool. It'll be like, I'd I'd adopt a minor,
[00:53:02] Unknown:
in the old days. Remember you're probably too young for this, but remember Sally Struthers when you would, like, adopt the kids? Mhmm. They were always I do. I do. Then you'd get the pen pal notes and stuff, so it's kinda like that. Yep. Yep. But, yeah, that's so cool. But so okay. Any last things you wanna tell everybody? I know everybody needs to go follow you on on Twitter at, k halliburton. And I'm gonna have all this stuff in the show notes, and I've got your nostril address and everything that'll be in the show notes so people can check that out. Any words of wisdom or final thoughts for, you know, normies who wanna dip their toe in water?
[00:53:40] Unknown:
Oh, gosh. I just to tell them tell everybody, you know, come on in. The warm the water's warm and fine, you know. Like, it's it's it's not as scary. I think that's the biggest issue that our industry has faced is that there's been a lack of trust, in the vendors serving, the sector. And we've certainly faced that. And I think that, we are overcoming that as a company, But it is the thing I tell my team over and over again, which is just, hey, guys. This is a reputation game above and all else because at the end of the day, our customers have to trust us to have possession of their equipment. There's no other way to do this than to build a high trust reputation in our industry. And so, you know, it's just one customer at a time working to do that. And I can't tell you the number of times that we could call the scam, but, we're still here and we're still growing, and clients are having a good experience. Trust our check our trust pilot reviews. And my DMs are open. So come find me on Twitter, and and I'll be happy to chat with you. Amazing.
[00:54:41] Unknown:
Awesome. Well, thank you so, so much for taking time out of your day from your family and working to be here with us at Bitcoin for Peace. And, Yeah, everybody. Thanks again for tuning in and make sure that you follow Kent. And until next time, I hope you guys have a wonderful day. And thanks again, Kent, for, taking time to be with us. Yeah, you're very welcome. Thank you. All right. Peace, love and aloha everybody.
Introduction to Bitcoin Mining
Meet Kent Halliburton: Journey to SaaS Mining
How SaaS Mining Works
Challenges and Opportunities in Bitcoin Mining
Bitcoin Mining in Paraguay
Bitcoin as a Tool for Peace
Raising Children with Bitcoin Values
Financial Literacy for Kids
Life in the Amazon
Future Plans for SaaS Mining