Bitcoin to the rescue?
As I contemplate the latest news headlines about Bitcoin consuming the same amount of energy as small countries or large cities, and therefore being bad for the environment. I am reminded of something I read in history class. The facts of a situation don’t always agree with the historical portrayal.
For example, while Christopher Columbus was celebrated as the discoverer of America, his personal logs indicate he used maps created by sailors who had already been there. Plus, his records show he actually landed on four Caribbean islands. Ironically, the map makers from his own time era named North America, South America and Central America after an Italian Amerigo Vespucci. It is believed that after first translating Amerigo into the Latin 'Americus' and then into its feminine form (as with Europa and Asia) you get America.
So in the case of Bitcoin being an environmental villain, do the facts matter?
Does it matter that geothermal energy from volcanos and hydroelectric power from huge flowing rivers are frequently located far from large cities where the power they generate is needed? After all who really lives on a volcano?
Does it matter that it’s expensive to buy large wooden poles and miles of electrical transmission wire and send power great distances to large cities?
Does it matter that while there are entire countries like New Zealand where electricity from geothermal is plentiful and cheap, but there are other places like Hawaii where geothermal energy costs more than electricity from oil burning plants?
Does it matter that Bitcoin mining facilities are often located in remote locations close to these hydroelectric plants, and that Bitcoin mining facilities 24 hour operations actually benefit these renewable energy plants by providing paying customers and consistent demand for the energy they produce?
Does it matter that humans work 9-5 all over the world, creating huge imbalances in energy demand from daytime to evening. Which makes it very hard for solar energy companies which produces peak energy in the day, and have poor energy storage capabilities to match people’s peak demand which is in the evening. However Bitcoin mining facilities require energy at predictable constant rates, providing these solar plants with a paying customer to help them earn revenues while developing their battery technology to deal with the residential power imbalanced demand issue.
Does it matter that methane and other natural gases released by oil drilling is now captured and burned to power Bitcoin mining operations, instead of being waste fully burned, and now reduces oil produced electricity usage by these same Bitcoin mining operations?
Bitcoin Paradox
This is what I call the Bitcoin green energy paradox. Bitcoin mining is actually providing revenues to multiple forms of renewable energy, including hydroelectric, geothermal, solar and natural gas. The importance of predictable energy demand are vital to energy company electrical grid stability and safety, plus the logical need for predictable cash revenues is widely known in the business world.
It is with this knowledge I suggest to you, that Bitcoin may actually be saving our environment, instead of harming it, by saving the renewable energy industry. Bitcoin provides them a customer with steady predictable energy needs and reliable revenue. A fundamental requirement for a businesses survival.
Ironically could harming Bitcoin harm the environment?
How ironic would it be if environmentalists were successful in killing Bitcoin Mining and this killed the renewable energy industry?
I am not saying this would happen. But what I am saying is that facts matter. And perhaps we all need more information before we criticize Bitcoin for being bad fir the environment.
What do you think?
Do you think Bitcoin uses to much energy?
Do you think Bitcoin might actually be helping save the environment?
Do you agree that life isn’t as simple as it sometimes portrayed?
Tell me in the comments below.
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance.
Read more of shortsegments articles here: @shortsegments
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