Thread by @DSBatten

Bitcoin mining is essential for the renewable transition

Here's why in one less-than-10-tweet thread

To achieve net zero, IEA report we will need 10x more demand response

That's grid jargon for "really really flexible consumers who can shut off and power on any time"

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IEA say we need 10x more demand response (DR) to achieve net-zero because solar/wind are unpredictable and intermittent in their supply

To counterbalance that, they need a lot of really flexible customers

Otherwise grids can have too much or too little power (blackout risk)

The Perfect Demand Response customer has 3 features

Immediacy: you can immediately ramp up or down consumption

Longevity: you can shed or consume more for as long as, say, an extreme weather event occurs

Precision: you can reduce or increase consumption to an exact level

Historically, industries like aluminum smelters or steel mills provided demand response.

Can you see the problem?

They can't act immediately
They can't act for long (after 4 hours, steel starts to harden)
They are really imprecise. They tend to be "on or off"

There is currently one (and only) type of demand response (DR) customer that has all 3 attributes needed to help the renewable transition:

#Bitcoin mining

Without them, it's unlikely we'll get 10x more DR, and even if we did it would be compromised quality DR

The evidence:

1. Bitcoin mining is really immediate. Adjustments can be made in 16 seconds! That's fast enough to avoid blackouts.

Compare this to the 30 mins it takes steel mills
freethink.com/sponsored/clea…

2. Bitcoin mining is really long acting

During the '22 Xmas Icestorm in Texas, onchain data shows Bitcoin miners began powering down on 24 Dec, with normal consumption resuming 28 Dec

That's ~100 hrs of DR

25x what a steel mill can do
beincrypto.com/bitcoin-hashra…

3. Bitcoin mining as DR is really precise

The graphic from @ShaunEnergy below shows how Bitcoin miner Lancium use their software to precisely scale up or down power use to help grid operators keep the grid stable

Can't do that with a steel mill: its on or off

So,

1. without 10x more demand response we cannot achieve the renewable transition (IEA data)

2. without Bitcoin miners, we don't have our #1 form of demand response

If renewable transition is our WHAT, Bitcoin miners are an essential part of our HOW.