Oct 1, 2022 1 min read

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.

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.

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