1/7 The data is very clear: if you want to pay 20% extra for power: remove Bitcoin mining from the grid.
If you want to reduce power costs, add Bitcoin mining to your grid
There are 5 ways Bitcoin mining lowers residential power costs, based on real case studies and data
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1. Removes need for expensive gas peaker plants
Solar and wind deliver intermittant power, so most grid operators purchase gas peaker plants for backup as they put ramp up solar and wind production.
Texas used Bitcoin mining instead, avoiding $18Billion in additional cost.
2. Monetizes wind and solar power that was previously wasted
Bitcoin mining helps "find a home for otherwise wasted wind energy." Because of that, those wind and solar operators were more profitable, decreasing the pressure to raise prices to increase profit
A groundbreaking new study shows that Bitcoin mining is the most effective way to accelerate rollout of solar panels across the world’s cities:
More effective than using either subsidies or Batteries by an order of magnitude.
Let's dive in
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2/6
40-60% of people in cities in the West live in apartments (Higher in EU)
source:
Until now, there's been no easy way to have apartment owners install solar panels, so most apartments don't have them. landgeist.com/2021/08/20/peo…
3/6
This study shows the problem: The ROI on solar still takes a while, especially if you're living in a high latitude like Finland where this study was taken.
Add in batteries, and the ROI improves marginally (12.5%), but not enough for a solar apartment tipping point
Cambridge has just released their updated report on Bitcoin mining
For the first time, their report shows that most (52.4%) of the Bitcoin network is now powered by zero emission energy sources (up from 37% in their last report)
Here's a summary of their findings👇
Firstly, this report improves on previous reports by including detailed surveys of 49 Bitcoin mining companies.
Previous reports assumed that Bitcoin mining happened ongrid, and was also based on a time when a lot of (fossil fuel based) mining happend in China or Kazakhstan
Their report found that 26% of all mining happens offgrid (previous reports did not factor this community of miners in).
Most offgrid miners do so to access cheaper power, which tends disproportionately to be sustainably sourced
1. More flexible load can mean avoiding grid upgrades
"To the extent a new load can temporarily curtail its electricity consumption from the grid during these peak stress periods, it may be able to connect while deferring—or even avoiding—the need for certain [grid] upgrades"
2. Bitcoin mining found to be the Rolls Royce of flexible load
The report singled out one company for achieving "a 95% load reduction during peak demands (Riot Platforms 2023)."
Non-Bitcoin data centers were unable to demonstrate anything near this level of load curtailment
1/17
You've read many times Bitcoin is bad for the environment. But now you're confused. The media, sustainability magazines, even peer reviewed journals are saying it can support climate action.
Next-level greenwash?
There a reason the message has changed. Let's dive in
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2/17
The change in message has less to do with Bitcoin than something psychologists call "negativity bias"
Imagine it's 100,000BCE. You see an animal silhouette on the horizon. Is it your food, or you're it's food?Negativity bias says "assume in the negative and run!" (away)
3/17
We have done the same for all novel technologies from the telegraph to the Internet, in an unbroken 160-year stream of negative press for their first 15 years.
Even the innocuous-seeming bicycle did not escape this negativity bias !
10 images that forever changed our perceptions about Bitcoin and energy
1. Rhodes et al showed that flexible datacenters like Bitcoin mining allow grid owners to stack more intermittent renewable energy sources onto the grid
2. This powerful chart from @woonomic showed that Bitcoin mining is now more sustainable than the industries it can in theory obviate (banking, as a method of transacting. Gold, as a store of value)
3. This image from Dr Rian Dewhurst showed that unlike other industries, over 61% of all Bitcoin mining companies use sustainable energy or carbon negative energy sources.
This high adoption rate helps create more demand for renewable energy