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223 sats \ 1 reply \ @miraclemarc 15 Sep 2023 \ on: Fossil Fuels are Fiat Energy. Reorg of the mining space coming ⚒️ bitcoin
Miners can make arrangements with utilities who have miss-allocated capital to the illogical, unreliable power source of wind and solar.
But miners should not and cannot plan to not operate based on the unreliability of these energy sources or you will drive your mining operation into the ground. Miners must plan to run near 100% of the time to ROI on their machines and thus they need reliable power sources such as fossil fuels and Nuclear.
So, while indirectly miners can help the miss-allocated capital, long term miners ensure the build out of reliable sources of power and de risk the scaled build out of these energy sources. This is great for humanity and human flourishing.
Then they'll go bankrupt, from either difficult energy contracts with bad curtailment guarantees, or by putting their faith in commodity prices they can't control, or hoping the political establishment doesn't give their competition subsidies, or having to shut down because of BTC's price volatility to the downside, which isn't something those with renewable infrastructure need to do because they'll make even more money as their competition idles. Miners already have access to reliable baseload sources and it's not enough to make money. Take CORZ which was the largest miner by hashpower in America that filed chapter 11 last year. I'd argue the records bitcoin is setting with network hashpower is in large part due to the illogical and unreliable sources you mentioned. Because those grids with big flexload are where hashpower is growing fastest globally. Even El Salvador's new 1.3 EH/s mining operation buildout is powered exclusively by a $1B renewable energy park.
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