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Bitcoin has the potential to serve as a subsidy to green energy. A significant amount of wind energy in China, for instance, is simply burned off as waste heat

Bitcoin has the potential to serve as a subsidy to green energy. A significant amount of wind energy in China, for instance, is simply burned off as waste heat. Over 30% in some cases. This waste happens when there's no demand for the excess energy and no where to store it. With Bitcoin, such excess energy can be devoted to mining. The bitcoin generated by that mining can then be sold and serve as a subsidy to the green energy producer. This subsidy changes the numbers around green energy and makes it even more profitable, encouraging more such green energy projects to be started. It's easy to point at proof of work and claim it's a waste. I encourage you to dig deeper, however. Proof of work enables us to radically change the financial system we have today and to potentially make it more efficient.

mgbmtl 9y ago
How do you suggest we get there? Ban unregulated mining farms, only allow them to exist if they have a deal with their local energy producer? It would also require most countries to adopt some sort of treaty. No one is mining only when demand for energy is low. They're mining 24/7, even probably during peak hours. Even with variable energy pricing, it's still more profitable to keep mining than to let equipment lose value idle. Bitcoin users/miners are externalizing their environmental impact. Otherwise, perhaps things such as Lighting can help reduce mining requirements, but it's definitely up to cryptocurrencies to find better solutions, not wait for countries to adopt legislation.
- etr-strike 9y ago
  I did not say this was a widely adopted use case yet. I'm just pointing out that every green energy producer in the world right now currently burns off excess energy as waste heat. If they move to mining bitcoin instead, they'll actually earn money from that waste electricity.
  - mgbmtl 9y ago
    I agree, but the argument sounds like greenwashing. Sure, it's possible that PoW could be run from green energy, but what's the likelihood of that happening? how do we get there? I offered some suggestions (ban unregulated large-scale mining, connect farms to specific green grids), but I doubt Bitcoin fans will like them. :)

mgbmtl 9y ago

How do you suggest we get there? Ban unregulated mining farms, only allow them to exist if they have a deal with their local energy producer? It would also require most countries to adopt some sort of treaty. No one is mining only when demand for energy is low. They're mining 24/7, even probably during peak hours. Even with variable energy pricing, it's still more profitable to keep mining than to let equipment lose value idle. Bitcoin users/miners are externalizing their environmental impact. Otherwise, perhaps things such as Lighting can help reduce mining requirements, but it's definitely up to cryptocurrencies to find better solutions, not wait for countries to adopt legislation.

etr-strike 9y ago
I did not say this was a widely adopted use case yet. I'm just pointing out that every green energy producer in the world right now currently burns off excess energy as waste heat. If they move to mining bitcoin instead, they'll actually earn money from that waste electricity.
- mgbmtl 9y ago
  I agree, but the argument sounds like greenwashing. Sure, it's possible that PoW could be run from green energy, but what's the likelihood of that happening? how do we get there? I offered some suggestions (ban unregulated large-scale mining, connect farms to specific green grids), but I doubt Bitcoin fans will like them. :)