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Executive summary: Bitcoin and Energy: Bitcoin Mining — a Revolution in our Energy Production?

Bitcoin mining could play a significant role in overhauling the way we look at energy production. In this article, I look at how Bitcoin could flip energy production on its head and what needs to happen to make that real.
Executive summary: Bitcoin and Energy: Bitcoin Mining — a Revolution in our Energy Production?

Executive summary:

  • The Bitcoin mining power mix contains 59.5% sustainable energy.
  • The Bitcoin network is a marginal buyer of energy with perfect price elasticity.
  • Jevons paradox stipulates that the better we get at saving energy, the more we will need. Thus, we need to put producing more electricity first.
  • Countries like Germany are phasing out nuclear energy for political reasons, but rising energy costs will make turning your back on nuclear even harder.
  • Electricity is produced by having a base load and an intermittent load. Consistent energy sources like nuclear and coal are better for base loads.
  • Producing excess electricity and selling the oversupply to Bitcoin miners would mean that Bitcoin can take the edge off inconsistent sources like sun and wind.
  • Bitcoin mining needs to be regulated to incentivize mining with stranded energy.
  • There are several obstacles: a better understanding of how BTC can be mined with non-rivalrous energy, sound regulation, and a political will to change.

Full article:

Bitcoin and Energy: Bitcoin Mining — a Revolution in our Energy Production? | CoinMarketCap
We dive into how Bitcoin could potentially change the way we look at energy production and the current power grid.