Bitcoin Miners Are Energy Dung Beetles – Bitcoin Magazine
This is an editorial by Robert Warren, Partner at Distributed Hash and Head of Business Development at Upstream Data Inc.
Laymen know only one thing about bitcoin mining. many of energy bad.
This mind virus, successfully spread by climate extremists and anti-Bitcoin street corner preachers (usually with proof-of-stake flashlights), has become a death knell for the burgeoning industry. intended to be we use a lot of energy. rude thingAs a result, we are despised, tracked, and regulated into non-existence.
As we face the climate crisis, we know everythingthe best course of action is to put solar on your roof, buy a Tesla, shut down coal and gas plants in your area, and claim that anything else is systematically racist Proof of work is the enemy.
This argument is plainly ridiculous to most reasonable people who enjoy running their dishwashers and turning on the lights at night.
But there is still one big problem. And won’t those computers clog landfills the moment they become unprofitable?”
If you’re interested in the Bitcoin question that we have to answer for all the megawatts we consume, we have to answer the question, “Doesn’t Bitcoin use a lot of energy?”
Yes, but what energy?
Note: Before we go any further, let’s make a clear distinction between energy and electricity. Energy comes from primary sources such as natural gas wells and hydroelectric dams. These primary power sources are used to generate electricity. This is the secondary energy that we make all over the world that is sent through high voltage wires to power our dishwashers.
Note: Not all Bitcoin miners use wasted or excessive energy today. My argument is that this is the long-term trend of our industry, regardless of generation type, because simple supply and demand are driving miners to the lowest priced energy.
What Energy Do Bitcoin Miners Use?
Bitcoin mining will exist and be profitable as long as there is wasted energy.
Let me say it again to everyone in the back row. As long as there is waste in energy production and supply chains, everytime hardware type, manufacturer, age, location, everything.
Even respected Bitcoin mining FUD masters like Digiconomist’s Alex de Vries fail the simplest economic analysis in the Bitcoin mining space. In other words, they do not understand supply and demand. As such, they publish the following findings: A device typically outlives how long it can perform its tasks and make a profit (McCook, 2018). The moment it becomes unprofitable determines the lifespan of the device and the point at which it becomes e-waste…In this study, the lifespan of Bitcoin mining devices remains limited to 1.29 years. ”
So should we understand that efficiency in the ASIC market is the only factor in energy consumption and e-waste generated?
As a reason not to mention the above directly, citing Brandrini’s law (“the amount of energy required to refute bullshit is orders of magnitude greater than the amount required to produce it”), instead describes wasting energy.
Waste energy refers to various points throughout the energy supply chain where energy is available to perform work, but for some reason is not. This takes many forms across markets, including methane emissions and flaring at oil and gas sites, wind farms, hydroelectric power plants, nuclear reactors, and power outages at solar power plants due to low demand. there is.
Bitcoin mining is the ultimate waste reduction tool. Because as long as waste exists in the energy sector, there will always be an incentive to mine bitcoin with that energy, regardless of the type of ASIC. (Note: If you’re Alex de Vries, you should read the last sentence again and reconsider his estimate of 1.29 years for an ASIC’s lifetime.)
Source: author
Source: author
The least valuable energy is the energy that never hits the market. Methane gas is emitted or burned in oil wells, idle wind turbines in megafarms, non-rotating hydroelectric turbines. For solar power, the excess capacity goes unused at noon because the production time does not match the demand time.So when the sun goes down people turn on more lights under.
Bitcoin miners are not interested in your Science-Backed Turbo Grid™, your political idealizations, or the dream team you assembled to form a research council. Whether it’s 89% nuclear, 71% solar with Tesla Powerwalls, no fossil fuels completely, or 93.7% hydro, we don’t care.
We are free agents in an eternal free market.
We want your waste and excess.
We are the dung beetles of the energy sector.
And this robust industrial framework is already developing.
Expertise in racks, power distribution units and transformers for indoor operations, a variety of containerized solutions designed to protect miners in harsh Texas summers and frigid Alberta winters, consuming natural gas A half-engine, half-datacenter chimera born only for the purpose of dumping excess heat into your home in the cold season is all there is. Secondary markets for software and hardware are emerging in firmware, machine management, maintenance and life extension.
All designed around one goal: to identify and harness the cheapest energy in the most efficient way possible. That cheapest energy isn’t the power you’re using to charge your iPhone or watch Netflix. You live in a remote substation with surplus capacity or a natural gas plant with underutilized turbines.In this way, bitcoin mining has taken over the market wherever none in the energy supply chain.
At nearly every point in the energy supply chain, there is waste or surplus that is more expensive to consume than left alone.
So if a bitcoin-interested friend asks you about the dreaded megawatts bitcoin miners are using, the first answer might be:
What Energy Do These Bitcoin Miners Use?
This is a guest post by Rob Warren. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or BTC. Bitcoin magazine.
Bitcoin Miners Are Energy Dung Beetles – Bitcoin Magazine
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