Thread by @DrMurrayRudd

A new peer reviewed paper titled “From mining to mitigation: how Bitcoin can support renewable energy development and climate action” presents findings about #bitcoin mining. The Oct 27th paper is behind a paywall, so I'll provide the key points in a🧵doi.org/10.1021/acssus…

2/16: It was published in ACS Sustainable Chemistry & Engineering, which ranks 14 out of 139 for all environmental science – chemistry journals. Articles in this journal are frequently referenced in new research and get exposure. pubs.acs.org/journal/ascecg

3/16: The paper’s research team featured a PhD student from Cornell University, and seasoned professors from Western and Cornell. The Cornell research group, led by Fengqi You, is extremely productive with articles in many top journals. peese.org

4/16: What does this mean for the paper's content? It's poised to be highly cited, contributing valuable insights to future academic work. It paints a promising picture for Bitcoin mining as an accelerator for renewable energy development.

5/16: Diving into the Introduction, the paper zeroes in on a critical research question: Can Bitcoin mining act as a lever to increase the economic viability of renewable energy projects in the U.S.? The answer is a resounding affirmative ✅

6/16 The research method involved assessing the profitability of planned new solar and wind projects, utilizing national data to support their analysis. This approach is grounded in real-world data from the National Renewable Energy Lab. windexchange.energy.gov/maps-data/319

7/16: Despite the complex formulas presented, the essence of the research is accessible. The study evaluates capital and operational expenditures against power output to determine which of 58 pre-commecial renewable facilities could be most profitable prior to grid hook-up.

8/16: The Results: The team found that bitcoin mining “can help attract private investment into the renewable energy sector, providing a much-needed boost” for renewable development.

9/16: The authors presented three policy recommendations based on their findings. The 1st advocates for flexible decarbonization strategies that include Bitcoin mining as a key component.

10/16: The 2nd proposes that “instead of limiting the growth of the industry, it is more practical to use clean energy sources for bitcoin mining,” and use carbon credits as incentives for adopting sustainable mining practices.

11/16: The 3rd recommendation calls for maximizing location-specific renewable energy integration, with the profits reinvested into further renewable infrastructure development. This aligns with a prior paper from the same research group:
doi.org/10.1039/D1EE03…

12/16: Concluding with a powerful statement, the paper suggests that “bitcoin mining, an activity often criticized due to its energy-intensive nature, could serve as a bridge to foster investments in renewable energy”

13/16: My take: The study emphasized Bitcoin's potential role in accelerating the adoption of renewable energy. It may even underestimate the benefits, as it relied on 'historical data on market prices' (but didn't specify prices).

14/16: It's important to note that the article only considers Bitcoin revenue up until grid hook-up. Long-term contributions of Bitcoin mining to renewable energy facility financial viability also needs consideration in future research.

15/16: This paper infers that all revenue from mining accrues to the renewable energy facility. There is a need to consider how Bitcoin miners and renewable energy operators structure their businesses and work together.

16/16: At @SatoshiEducate, we're exploring similar models for landfill methane mitigation, aiming to illuminate further the impacts of #Bitcoin mining on the environment. Give us a follow to keep up-to-date on our progress!