Bitcoin is green. Bitcoin is clean. Perhaps the world’s best system to incentivize abundant, cheap and renewable energy production
This article was originally published by Thubaud Marechal on thibaudmarechal.com
No bitcoin doesn’t boil oceans. Bitcoin is green. Bitcoin is clean.
Perhaps the world’s best system to incentivize abundant, cheap and renewable energy production.
Bitcoin computers (also called miners) all around the world compete for cheap electricity to timestamp updates to the bitcoin database, also referred to as processing transactions.
By doing so, miners look for the cheapest forms of electricity, wherever it can be found and anytime it is available.
Stranded, captive, remote and unused electricity is the best form of energy for bitcoin miners because few want it so it is available at very competitive prices.
Bitcoin miners can now sell any excess electricity that would be wasted, as most producers generate excess electricity all year round to be able to meet peak seasonal demand.
By acting as buyers of last resort for electricity, bitcoin miners incentivize electricity producers to be highly efficient in order to generate excess production to be monetized.
Bitcoin mining also allows for healthy grid load re-balancing as miners would shut off in times of peak electricity demand due to competitive pricing dynamics in residential and industrial use cases.
Bitcoin does not lead to extra electricity production.
Bitcoin consumes the electricity that most people do not want.
Bitcoin is recycling electricity.
Bitcoin is clean.