elon jack dorsey argue bitcoin energy

The researchers explained that the divergence between renewable energy production and electricity demand could be mitigated by creating an ecosystem “where solar/wind, batteries, and Bitcoin mining co-exist to form a green grid that runs almost exclusively on renewable energy.”

Not only is this doable, it is doable without jeopardising the sector’s profitability.

Following this line of reasoning, the authors go on to describe the bitcoin mining sector as “an energy buyer of last resort” that can be situated anywhere on the planet.

The paper asserts the geographical limitations of renewable power plans, which typically results in energy supply being “either abundant or non-existent”.

The end result is significantly more power than society typically needs for a few hours per day and not nearly enough when demand spikes.


If miners could capture just 20% of wind and solar energy that is delayed on US power grids, BCEI projects that global mining capacity could triple.

Additionally, costs for renewable energy would also see a rapid decline. This is because “bitcoin and energy markets are converging” and BCEI believes that “the energy asset owners of today will likely become the miners of tomorrow”.

However, the argument could be viewed as a justification for bitcoin’s energy consumption.

This begs the question: how much is pristine money – which has never existed in the history of mankind – worth; the answer of which could be found in the trade-off with energy consumption as the network grows.

Subscribeto the semi-weekly newsletter for regular insight into bitcoin and crypto.
Go on.

Square and Investment manager Ark Invest asserts that Bitcoin mining can increase efficiency in renewable energy production.

The author of “Bitcoin Clean Energy Initiative” or BCEI, seeking to refute the claim that “the computation required to secure Bitcoin […] are damaging the environment and destroying the planet“argued that Bitcoin mining encourages electricity generation “from carbon-free renewable sources.”

The article has received support from leading crypto companies including Jack Dorsey’s Square, Elon Musk’s Tesla, and Cathie Wood’s Ark Invest.

True

— Elon Musk (@elonmusk) April 22, 2021

In an April 22 tweet, Square argued that while solar and wind power can produce cheaper energy than fossil fuels, these renewable sources often create an oversupply when demand increases.

Elon jack dorsey argue bitcoin energy-i

A bank would probably want to charge a higher interest rate on a project that plans to sell power to a Bitcoin miner than it would if the customer were Google.

“I don’t know how you’d assess the risk profile of a Bitcoin mining operation,” said Albert Cheung, head of analysis at BNEF. “You kind of want your offtaker to be around for 20 years, or at least 10.”

For now, lots of Bitcoin is being produced by the most-polluting source of electricity. Research from the Centre for Alternative Finance shows that Bitcoin mining is dominated by China, a country currently driving a boom in new coal plants.
In the second quarter of 2020, the latest data available, the world’s biggest polluter mined as much as 65% of the coins.

By comparison, Iceland and other Nordic nations, once seen as a green haven for Bitcoin, were producing less than 1% of the coins each.

Elon jack dorsey argue bitcoin energy-iv

Entitled ‘Bitcoin as key to an abundant, clean energy future’, the paper argues that ‘bitcoin miners are unique energy buyers’, because they offer flexibility, pay in a cryptocurrency, and can be based anywhere with an internet connection. ‘By combining miners with renewables and storage projects, we believe it could improve the returns for project investors and developers, moving more solar and wind projects into profitable territory,’ it said.

Author and bitcoin critic David Gerard described the paper as a ‘cynical exercise in bitcoin greenwashing’.

‘The reality is: bitcoin runs on coal,’ he told the BBC….

Elon jack dorsey argue bitcoin energy-vi

A bank would probably want to charge a higher interest rate on a project that plans to sell power to a Bitcoin miner than it would if the customer were Google (NASDAQ:GOOGL).

“I don’t know how you’d assess the risk profile of a Bitcoin mining operation,” said Albert Cheung, head of analysis at BNEF. “You kind of want your offtaker to be around for 20 years, or at least 10.”

For now, lots of Bitcoin is being produced by the most-polluting source of electricity. Research from the Centre for Alternative Finance shows that Bitcoin mining is dominated by China, a country currently driving a boom in new coal plants.
In the second quarter of 2020, the latest data available, the world’s biggest polluter mined as much as 65% of the coins.

By comparison, Iceland and other Nordic nations, once seen as a green haven for Bitcoin, were producing less than 1% of the coins each.

There are so many existing incentives that the International Energy Agency expects wind and solar to account for around 12% of electricity demand by 2030, up from 5% in 2019.

Wood says the new research ideas — in a paper by her ARK Investment Management LLC and Dorsey’s Square Inc (NYSE:SQ). — “debunk the myth” that Bitcoin mining is damaging the environment. On Twitter, Dorsey said Bitcoin “incentivizes renewable energy.” Musk responded with one word: “True.”

But there’s still the fact that the mining devours massive amounts of power.
Bitcoin mining now uses 66 times more electricity than in 2015, Citigroup Inc (NYSE:C). said in a recent report.

Bitcoin mining is bad for the environment. #bitcoin #EarthDay2021

— Mati Greenspan (tweets financial advice) (@MatiGreenspan) April 22, 2021

However, not everyone is convinced by BCEI’s assertions, with prominent analyst Mati Greenspan describing the report as “justifying Bitcoin’s massive energy consumption”.

Rather than offer a solution to Bitcoin’s growing energy consumption, Greenspan describes the BCEI paper as providing a blueprint for “a feedback loop consumes a lot of energy“. Greenspan argues:

“The main focus of the paper doesn’t seem to be looking too much for solutions to justify Bitcoin’s massive energy consumption and paint a rosy picture of how it could positively impact the sector.

( Bloomberg) — A trio of Jack Dorsey, Cathie Wood and Elon Musk are promoting the idea that Bitcoin mining can be good for the planet actually. That’s not exactly true.

The basis of the idea is that mining crypto currencies uses a lot of power and can be deployed at any time.

That could help a developer make money minting coins at a time when there’s lots of wind or sunshine, but not much electricity demand. Making better use of wind and solar, where power generation can be intermittent, increases efficiency, lowers prices and helps encourage the green transition.

The theory is based on trends that are already happening, regardless of crypto.

The cost of renewable power is plummeting and an increasing share of energy is being supplied by electricity.

According to the researchers, the problem of different renewable production and the need for electricity can be minimized by building an ecosystem.”where solar/wind, battery and Bitcoin mining coexist to form a green grid running almost entirely on renewable energy.”

“This is not only doable, but it can be done without jeopardizing industry profitability.”

The article describes the Bitcoin mining sector as “ultimate energy buyer“possibly anywhere in the world.

Although solar and wind power cost between about half and a third of fossil fuels per kilowatt hour, the paper asserts the geographic limitations of renewable energy plans often lead to provide energy”abundant or non-existent“.

“The end result is electricity that is significantly more than society needs for several hours a day, and not nearly enough when demand spikes.

Jack Dorsey, the co-founder and CEO of Twitter, tweeted Wednesday that bitcoin ‘incentivises renewable energy.’ And Elon Musk responded ‘True.’

The BBC adds that the tweets came ‘despite experts warning otherwise.’

The cyrptocurrency’s carbon footprint is as large as some of the world’s biggest cities, studies suggest. But Mr Dorsey claims that could change if bitcoin miners worked hand-in-hand with renewable energy firms.

One expert said it was a ‘cynical attempt to greenwash’ bitcoin.

China, where more than two-thirds of power is from coal, accounts for more than 75% of bitcoin mining around the world…

The tweet comes soon after the release of a White Paper from Mr Dorsey’s digital payment services firm Square, and global asset management business ARK Invest.

Similar Posts:

Leave a comment