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.
What you will learn:
- How Bitcoin mining can revolutionize energy production.
- 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.