musk dorsey argue incentivises renewable

Dorsey’s digital payment services company Square and global asset manegement firm ARK Invest have jointly released a white paper on “Bitcoin as Key to an Abundant, Clean Energy Future”.

In a tweet on Wednesday, Dorsey said: “Bitcoin incentivises renewable energy.”

Musk replied: “True,” after tweeting that starting next week,”Tesla Solar Panels and Solar Roof will only be sold as an integrated product ‘with’ Tesla Powerwall battery.

In the white paper, Square and ARK Invest said that “the energy asset owners of today can become the essential bitcoin miners of tomorrow”.

The ‘Bitcoin Clean Energy Initiative’ has developed a short research paper as a “starting point to share our vision for how bitcoin mining – in conjunction with renewable energy and storage – is especially well suited to accelerate

the energy transition”.

Iceland’s biggest utility said that no one would build more power capacity just to feed bitcoin mining.

Pollution from mining bitcoin in China is expected to peak in 2024, releasing as much carbon dioxide as all of Italy, according to a study published this month in open access journal Nature Communications. And by using coal to generate most of its power, harmful carbon emissions keep going up.

There may also be better uses for renewable power than making bitcoin, including decarbonising existing energy demand that relies on burning fossil fuels.

As Teslas and other electric vehicles replace petrol and diesel cars, they will need a lot more electricity.

Other major polluting industries such as steelmaking, chemical production and aviation could also potentially use the cheap green power to make hydrogen.

Tweet may have been deleted (opens in a new tab)

Former Twitter founder Jack Dorsey seemingly took a little offense to the idea, saying the algorithmic feed was simply designed for people who don’t obsessively check Twitter. In a later reply downthread to another user, Dorsey admitted the algorithm can have “unintended consequences,” but maintained it wasn’t designed to manipulate users.

Tweet may have been deleted (opens in a new tab)

Again, in fairness to Musk, he didn’t say the algorithm was intended to manipulate, just that it happens. This is all an excuse for me to tell you that, on the most basic level, Musk is right about this: You need to switch your Twitter feed from “home” to “latest” pronto.
Don’t let the machine feed tweets to you.

The only reasonable way to sort internet content is by chronological order.

Musk dorsey argue incentivises renewable energy

The Centre for Alternative Finance at the University of Cambridge in the UK estimates that mining bitcoin uses more electricity than the Netherlands does in a year.

To further incentivise renewables, crypto miners could sign long-term agreements to buy green electricity. That’s what major companies like Amazon do to help cut their carbon footprint.

It has helped fuel a boom in renewable power assets in the US.

In their research, Ark and Square proposed that a renewable power project could be built without a grid connection just to power a bitcoin operation.

That would speed up development, but would also make the project riskier in the eyes of a lender as the grid connection might never materialise, making a development completely dependent on mining.

But part of the rapid decline in the price of renewables has also been thanks to cheap financing.

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.

I don’t know how you’d assess the risk profile of a bitcoin mining operation. You want your offtaker to be around for 20 years, or at least 10.”

For now, lots of bitcoin are 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 the boom in new coal power plants.

In the second quarter of last year (the latest data available), the world’s biggest polluter mined as much as 65% of the currency.

READ:How social media networks are used to lure people into investment fraud

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

Their traditional surplus of geothermal, hydro and wind power is rapidly shrinking.

But their opinions are not shared with those more cynical about the cryptocurrency’s impact.Jack Dorsey and Elon Musk agree on bitcoin’s green credentials

But their opinions are not shared with those more cynical about the cryptocurrency’s impact.

What Elon Musk and Jack Dorsey Are Missing About Bitcoin and Green Energy

Jack Dorsey, Cathie Wood and Elon Musk are promoting idea that Bitcoin mining can be good for planet—but that’s not exactly true.

What Elon Musk and Jack Dorsey Are Missing About Bitcoin and Green Energy

Jack Dorsey, Cathie Wood and Elon Musk are promoting idea that Bitcoin mining can be good for planet—but that’s not exactly true.

What Elon Musk and Jack Dorsey Are Missing About Bitcoin and Green Energy

A trio of Jack Dorsey, Cathie Wood and Elon Musk are promoting the idea that Bitcoin mining can be good for the planet actually.

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

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

Wood says new research ideas – published in a paper by her Ark Investment Management and Dorsey’s Square Inc – “debunk the myth” that bitcoin mining is damaging the environment.

READ:Taxman has an eye on your crypto profits

On Twitter, Dorsey said bitcoin “incentivises renewable energy”. Musk responded: “True.”

But there’s still the fact that the mining devours massive amounts of power.

To complement this work, ARK Invest has contributed an open source model that demonstrates how bitcoin mining could augment these renewable + storage systems to supply a larger percentage of a grid’s base-load energy demand for comparable or lower cost unit economics.

“Bitcoin miners are unique energy buyers in that they offer highly flexible and easily interruptible load, provide payout in a globally liquid cryptocurrency, and are completely location agnostic, requiring only an internet connection,” the paper read.

Bitcoin miners are an ideal complementary technology for renewables and storage.

“Combining generation with both storage and miners presents a better overall value proposition then building generation and storage alone,” the research paper noted.

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.

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