5 ms·
Another major error they made, is that they assume that Bitcoin mining uses grid energy and assume that it follows the CO2 emissions of electricity generation i
by Geee 6y ago
Another major error they made, is that they assume that Bitcoin mining uses grid energy and assume that it follows the CO2 emissions of electricity generation in that country.
This is completely wrong. Most mining happens currently on underutilized hydropower stations, because grid energy or fossil fuels wouldn't be as profitable. Because of the mining difficulty adjustment and diminishing returns in improving ASIC hardware, the only way to profit is to find cheaper energy sources than all other miners.
In the long term, Bitcoin mining accelerates the development of abundant and cheap energy, which is not fossil fuels.
- viraptor 6y ago> In the long term, Bitcoin mining accelerates the development of abundant and cheap energy, which is not fossil fuels. Yes, but does it reduce the total reliance on fossil fuels? If we start with X coal plants and build a Y hydro plants to support btc mining, we're still running the original X coal plants.
- Geee 6y agoBitcoin mining can possibly finance the building of new solar / wind farms without government subsidies. In time, mining will become less profitable and it makes sense to sell the energy to grid. Obviously, fossil fuel energy should be taxed more heavily to get rid of it faster.
- viraptor 6y agoThat sounds like trickle down economics idea. It's possible of course... But is it more likely than people taking out their btc gains and buying a yacht instead?
- dschuessler 6y agoI suspect by "develop" the parent comment did not refer to the construction of power plants but to the improvement of the technology. Like in "Research & Development".
- viraptor 6y agoHave you got any non-trivial examples/plans of that happening beyond btc mining speeding up the existing "we need to solve this so fewer people die" process?
- konjin 6y ago>In the long term, Bitcoin mining accelerates the development of abundant and cheap energy, which is not fossil fuels. It incentivises stealing electricity because you can't beat free.
- samvher 6y agoNot sure why this is downvoted. I have a friend whose primary reason for mining was that he shared his electricity bill with the restaurant downstairs so it was very profitable for him.
- konjin 6y agoSame reason why goldbugs votedown Gresham's law. It's not comfortable for someone to call out your world view, especially with centuries worth of observation to back it up.
- krashidov 6y agoThis is really interesting. I wonder if we could invent a coin that can only be mined through renewable energy. This could be the incentive people need to move off of carbon.
- Geee 6y agoThe good thing is that renewable is the cheapest source of energy, which means that Bitcoin is that coin. However, it depends on location, and currently hydropower is the most lucrative if you can find an already built, but underutilized plant. Bitcoin gives away $250,000 to miners every 10 minutes, which is a good incentive for new energy developments.
- martiantourist 6y agoThere are coins that don't use proof-of-work (which is the main reason mining bitcoin uses this much energy). Other methods for the blockchain to work like proof-of-stake correct this problem, therefor needing less energy.
- salmon30salmon 6y agoThat is only really accurate if the electricity used would somehow disappear were it not for the mining. Electricity (minus the energy lost in transport etc etc) is zero-sum. If the miner uses hydro, that means someone further from the dam is using coal, methane etc as the hydro company isn't selling excess on the grid. Energy is finite on the grid, so yes mining takes energy which could have been used for (arguably) better purposes
- mr_woozy 6y agoNot here in Iceland we have more electricity than we have use for, it goes to bitcoin mining or it goes to aluminum smelting. No connection to the outside world grid.
- toomuchtodo 6y agoCould go to H2 production and export.
- carlcarlcarl 6y ago>This is completely wrong. Most mining happens currently on underutilized hydropower stations, because grid energy or fossil fuels wouldn't be as profitable. Could you provide a source for this?