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Jul 17 • 31 tweets • 16 min read
🧵THREAD: As energy grids adopt a greater percentage of intermittent renewables, more power must be absorbed by demand response loads. Prices act as signals help balance the grid, #Bitcoin mining profitability responds like noise cancellation technology. /1 Image
Most people take power grids for granted. You turn on a light switch and it "just works." In order for your local utility to provide reliable power, excess energy always needs to be available. Reliable power grids require redundancies that can be quickly dispatched. /2 Image
Power grids in North America need to maintain a "heartbeat" of 60Hz. This heartbeat can drift when energy supply and demand are mismatched—causing cascading issues and even damage equipment. #Bitcoin can act as a controllable load for (PFR) Primary Frequency Response /3 Image
In the past, grid operators had a relatively easier time balancing the grid when generation was mostly from fossil fuels. As power grids adopt more intermittent renewables, reliable generation becomes more challenging and unpredictable. /4 Image
To deal with the unreliability of intermittent renewable energy, power grids need dispatchable generation—sources of electricity that can be dispatched on demand at the request of power grid operators, according to market needs. Often this means reliable natural gas. /5 Image
Batteries are good deployable dispatchable generation, and we need more of them, however batteries have limitations. Even the largest batteries in the world cannot solve all of the challenges on modern grids. We need other solutions, including Bitcoin. /6
Other forms of reliable power generation, such as hydro and nuclear could be dispatched to backup the grid, however their resources would sit wasted and unused when they were on standby. For example, nuclear reactors are not flexible and can take hours to come online. /7 Image
#Bitcoin mining can turn an inflexible nuclear power plant into dispatchable generation by absorbing the standby power when no one else needs it and instantly turning down when the grid needs the power. No other technology can match this rapid responsiveness. /8 Image
Modern energy supply and demand are constantly fluctuating. Grid operators will increasingly use price signals to make industries and devices "smart" so the they consume power when grid has excess energy and turn down when the grid has too little. /9 Image
While smart devices will become more prevalent, very few industries can be as "smart" or as quick as #Bitcoin mining. For example, a steel plant cannot just shut down its melt shop for more than a few hours. The steel would harden before if can be rolled. /10 Image
#Bitcoin miners buy their energy in advance and use insurance products that allow them hedge price fluctuations. If the cost of energy gets too high, they get paid to turn off their machines. /11

When there is excess power on the grid, prices can go negative—meaning demand is so low that the grid operator is willing to pay customers to take the excess energy. As renewable penetration increases, the frequency of negative prices is increasing. /12

Wild claims in the media of supposed mountains of #Bitcoin e-waste are totally unfounded. The truth is that old machines are desirable in places where renewables are in excess and prices can go negative . /13 Image
#Bitcoin's usefulness, as a technology to monetize energy, merges perfectly with Demand Response on modern smart grids. Price signals from grid operators are instantly sensed by #Bitcoin miners, making them like noise cancelling technology for energy grids. /14 Image
#Bitcoin mining also incentivizes energy innovation. Pilot test plants that are thwarted by economies of scale can be monetized in ways that were not previously possible, unlocking new forms of renewable energy for humanity. /15 Image
An example of this is OTEC. Innovators @NateHawaii and @MichaelHawaii are working to unlock the thermal energy of the oceans—to bring clean base load power to 1 Billion people. This is only possible with #Bitcoin's ability to monetize stranded energy. /16 bitcoinmagazine.com/business/bitco…
#Bitcoin mining is a technology that unlocks new forms of energy and moves elsewhere as humanity learns to use those new sources of energy. Life on Earth itself could not have flourished without "Pioneer Species" that do this for all living things. /17

brandonquittem.com/bitcoin-is-a-p…
Just 175 years ago, crude oil was a curiosity. It was a nuisance for landowners—something that fouled up salt mines near Oil Creek, Pennsylvania. It had no economic usefulness other than as a suboptimal medicinal. /18 Image
Today, it is almost impossible to imagine life without oil. It's used in everything from clothing, plastics, roads, and even manufacturing renewable technology. /19 Image
It was not until oil was drilled and properly studied that innovators figured out it could be refined, stored and put to a wide variety of uses. We are at a similar point in history, with #Bitcoin. We are only just beginning to understand it. /20 Image
It's particularly disappointing so many of #Bitcoin's critics willfully ignore its benefits. Look closer and you will find that many critics are paid to spread misinformation about Bitcoin and thwart open payment rails /21 bitcoinmagazine.com/business/quest…
Politicians who claim to be progressive are spending their time creating moral panic over an industry that is too tiny to have any meaningful impact on the climate, while ignoring the necessity of the technology to supporting modern energy grids. /22
#Bitcoin's open payment rails are the only viable chance humanity has for preserving cash-like payments in a digital world that can support minority user rights in a global and neutral manner. /23

Time and time again, naysayers have wrongly dismissed nascent technology to their own peril. It's important to learn about #Bitcoin mining with an open mind and to consider its ability to work in harmony with modern uses of energy. /24
#Bitcoin will humble those who dismiss it. Take the time to learn, to ask questions, to better understanding this complex technology. We are still early in #Bitcoin's moment of discovery. Now, more than ever, is the time to explore it. /25

hope.com/en/resources
To learn more about #Bitcoin’s usefulness on modern energy grids, listen to this episode with @ShaunEnergy. /26

Learn how Duke Energy—one of the largest energy holding companies in the United States—is studying #Bitcoin for demand response, to balance their grid. /27
Addendum: Miners are compensated to turn down, and balance the grid, through financial instruments. They are not paid by the utility to turn down. • There are two types of en...
Addendum: Negative prices occur in locations that have 1) deregulated wholesale markets with locational prices, 2) excess wind and solar and 3) limited transmission with not enough demand across the entire region. /29
A conversation has emerged on Reddit, about this thread, on why #Bitcoin makes dispatchable renewable generation economical, in a future where batteries are more prevalent. /30

reddit.com/r/Bitcoin/comm… Image

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More from @level39

Nov 21
Stephen Diehl has a conflict of interest and is not the neutral critic that the media portrays him as. His company, Adjoint, not only benefitted from blockchain technology, it wants to stifle any competition from open payment rails. Image
2) Adjoint is still the same company, using the same blockchain technology it was founded upon. The only difference is that Diehl has shifted the company's marketing strategy to disparage cheaper open-source alternatives. Image
3) Diehl never stopped selling blockchain technology and smart contracts. He simply decided to attack the competition with a different marketing message. Image
Read 8 tweets
Nov 19
🧵THREAD: 1) Some of the most important pieces of writing in history were anonymous. As inconvenient as it may be for the likes of @jordanbpeterson, there is a long and critical history of anonymous speech. Let's take a closer look at those contributions.
2) Over 245 years ago, Thomas Paine’s "Common Sense," which gave rise to the American Revolution, was published anonymously. Even Paine's publisher, Benjamin Rush, remained anonymous at the time of its first printing. It was one of the most influential essays in history.
3) Paine published "Common Sense" anonymously because his arguments against British rule would bring government retaliation. Also he shared the Enlightenment belief that ideas were more important than the identity of the speaker expressing them.
Read 15 tweets
Oct 25
🧵THREAD: 1) Heat from #Bitcoin ASICs can be used for "ouroborosesque heat reintegration" to boost the performance of heat engines and thermal processes. It may hold the secret to supercharging economic energy innovation.
2) Heat reintegration exists in nature. We use our nose and throat as a regenerative heat exchanger when we breathe, to increase efficiency. Cool incoming air is warmed for our lungs. On the way out, warmed air heats the sides of the nasal passages for the next breath of air.
3) Edward Alfred Cowper applied the heat regeneration principle to blast furnaces, in the form of the "Cowper stove", patented in 1857. This is almost invariably used with blast furnaces to this day, using it to preheat the air blown back into the furnace.
Read 27 tweets
Sep 30
The latest energy FUD on #Bitcoin has the fingerprints of a financed operation behind it. (Ripple?)

• $10,000 to publish an Open Access article in Nature.
• Public Relations team to get your boring paper to appear in every media outlet on the same day.

nature.com/articles/d4158…
An Associate Professor such as @_BenjaminAJones would have to pay the $10K Article Processing Charge (APC) out of pocket. Universities won't pay it. The money will typically from a grant that the professor must find on their own. /2
Open-access papers have fewer lead authors from low-income countries than paywalled articles. This is particularly important since #Bitcoin's societal benefit is already being recognized in the global south. /3 nature.com/articles/d4158…
Read 6 tweets
Sep 21
🧵The claim that moving to Proof of Stake reduces energy consumption by 99.95% is a myth. Security budgets are energy budgets, whether they purchase energy for machines or humans that run social governance. 1/ bitcoinmagazine.com/culture/bitcoi…
Ethereum's high fees and low energy bills means the revenue extracted from users will simply be spent on other activities. If Ethereum validators are raking in huge sums of money, they will obviously be spending that revenue on other forms of energy. 2/
The amount of energy a network can consume is limited by its revenue. Revenue purchases energy, whether it be for miners or human activity. In a recent interview, Vitalik Buterin boasted that Ethereum will one day have a larger (energy-purchasing) security budget than Bitcoin. 3/
Read 34 tweets
Sep 9
🧵@WHOSTP's report on Crypto-Assets relies heavily (18 times!) on exaggerated data from a personal "hobby" blog run by Alex "Digiconomist" DeVries—an employee of the Dutch Central Bank which is developing a Euro CBDC. His blog uses dubious methodology and is not peer-reviewed. 1/
The @WHOSTP's mission is to "provide the President and his senior staff with accurate, relevant, and timely scientific and technical advice on all matters of consequence; second, to ensure that the policies of the Executive Branch are informed by sound science." 2/
How is it that an administration that is dedicated to the ideals of "sound science" managed to produce a report that cites the personal "hobby site" blog of a professionally-motivated Dutch Central Bank employee *18 TIMES* for @POTUS ? This is an embarrassment for @WHOSTP. 3/
Read 18 tweets

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