In this article, I want to explain:
  • how important energy is to civilization and improving the standard of living
  • why energy is so tricky to produce
  • how Bitcoin helps stabilize and improve access to energy as a byproduct of being the most incorruptible and freedom-promoting money known to man
Bitcoin mining gives energy companies a way to control demand. For the first time, energy companies can influence both sides of supply and demand. This is because Bitcoin mining is perfectly interruptible — there’s no progress lost if you stop mining and the main cost to mining is power. So Bitcoin mining companies create value for power companies by giving them demand that they can turn up and down as needed, and power companies can share this value with the mining companies in the form of lower electricity rates. It’s a win-win.
Bitcoin mining also liberates another type of stranded energy: all the power that’s produced but not used by unreliable sources. For example, the wind may blow at night even though demand is low. Without Bitcoin mining, that power is just lost, but now that energy can go towards securing the Bitcoin network and enabling the best money in the world.
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