The More Energy Bitcoin Uses, the Better

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'Bitcoin mining is the best thing to ever happen for renewables,' CoinDesk columnist DzambhalaHODL writes. Opinion.

Much has been written about how Bitcoin’s energy use is justified by the economic outcomes it promotes. As Bitcoin provides people around the globe with an incorruptible tool for storing value, this is true.

I recognize that this is a controversial stance in today’s world of climate concerns. I sympathize with and share the view that maintaining a habitable planet is an important goal. However, the path to environmental security and the path to economic security is the same path: increased mastery over energy.The reality of how humans innovate and accomplish important things is intimately tied to our control over energy. So do geopolitics and the matters of war and peace.

César Hidalgo, one of the foremost thinkers in the field of"economic complexity," finds that such knowledge only comes from direct experiential learning, not from universities and books. From praxis, not from theory. Inevitably, Hidalgo found that countries move from the products they already produce to new products which rely on similar productive knowledge.

Additional capital that incentivizes more energy production is a virtuous cycle whose end result is more prosperity and greater knowledge regarding energy production. This inevitably also includes our ability to control how much carbon is emitted while producing energy.Bitcoin is an ingenious force for allocating capital to the most efficient energy producers. Any miner who can secure cheaper energy can make a greater profit mining bitcoin than their competitors.

And what if you believe the mighty atom is the ideal energy source? What if you look up at the sun and intuit that if nature produces all of its energy via nuclear reactions, then it stands to reason that nuclear reactions are the most efficient way the universe has to produce energy.

The amount of capital that is being invested in energy, even including the recent financing of renewables,over the last century as a percentage of total capital investments. How are we supposed to build our energy future if we aren't investing in it?

 

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DzambhalaHODL You're missing a key ingredient for this to happen: verify those claims. BlackRock has the answer for you. $EWT ja_morris

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Bitcoin mining to cost less than 0.5% of global energy if BTC hits $2M: ArcaneBitcoin energy consumption share would rise to 0.36% only if its price surges to $2 million by 2040, according to new estimates by Arcane Research. ArcaneResearch uniswap need to fix this ASAP
Source: Cointelegraph - 🏆 562. / 51 Read more »