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Let's discuss how little you actually understand about economics and energy.
The first thing to understand is that energy is not globally fungible. Electricity decays as it leaves its point of origin; it’s expensive to transport. There is a huge excess (hydro) in many areas. https://twitter.com/smdiehl/status/1350869944888664064
The first thing to understand is that energy is not globally fungible. Electricity decays as it leaves its point of origin; it’s expensive to transport. There is a huge excess (hydro) in many areas. https://twitter.com/smdiehl/status/1350869944888664064
In other words, it can also be variable. It's estimated that in Sichuan there is twice as much electricity produced as is needed during the rainy season. Indeed, there is seasonality to how Bitcoin mining works. You can see here: https://cbeci.org/mining_map
Bitcoin EXPORTS energy in this scenario. Fun fact, most industrial nations would steer this excess capacity towards refining aluminum by melting bauxite ore, which is very energy intensive.
You wouldn't argue that we are producing *too much* electricity from renewables, right?
You wouldn't argue that we are producing *too much* electricity from renewables, right?
"But what about the carbon footprint! ITS HUGE!"
Many previous estimates have quite faulty methods and don't take into account the actual energy sources. Is it fair to put a GHG equivalent on hydro or solar power? That would seem a bit disingenuous, no?
Many previous estimates have quite faulty methods and don't take into account the actual energy sources. Is it fair to put a GHG equivalent on hydro or solar power? That would seem a bit disingenuous, no?
Well that's exactly what some have done.
https://www.nature.com/articles/s41558-018-0321-8 https://www.nature.com/articles/s41893-018-0152-7
https://www.nature.com/articles/s41558-018-0321-8 https://www.nature.com/articles/s41893-018-0152-7
Only a wholly uncritical mind would take dubious research like this and double down on a bad take. China's policy has largely veered towards keeping miners out of the 'steady' power grid that runs on coal simply because other productive industries are given preference by the CCP.
Let's consider the other sources of electricity which miners use now and may depend on at greater scale in the future:
Recently the petro industry has experimented with burning CH4 "flare-offs" to power Bitcoin miners, cutting methane emissions and reducing warming potential.
Recently the petro industry has experimented with burning CH4 "flare-offs" to power Bitcoin miners, cutting methane emissions and reducing warming potential.
Solar is also free energy for most who are brave enough to commit to the cooling costs and infrastructural requirements. It's been done before and it will absolutely scale as panels become even cheaper. https://www.reddit.com/r/Bitcoin/comments/6kk5dp/i_am_mining_in_the_desert_using_100_solar_and_i/
In fact, even if individuals and companies mining bitcoin do not shift to a renewable-based mining scheme, locales may just force them to do it. In Missoula, MT, miners must "either purchase or build renewable sources of energy that completely offset the electricity they consume"
Furthermore it is estimated that globally between 40-70% of all cryptocurrency mining powered by renewables. Of course this is up for debate and depends on who you ask.
It's fine to be critical of Bitcoin and the negative externalities, but it's worth being well informed.
It's fine to be critical of Bitcoin and the negative externalities, but it's worth being well informed.
