TD₿: ERCOT Shows that Bitcoin Miners are Benefitting the Texas Grid (a thread) by Mags Gronowska
TL;DR Bitcoin mining has the unique ability to be a flexible load demand on the power grid, which makes it more reliable and economical.
Hey Bitcoiners,
Lost in the chaos of the dumpster fire occurring over in the broader cryptocurrency industry this past week was the fact that the New York Governor signed a bill into a law that effectively bans certain Bitcoin miners from obtaining new permits in the state.
New York Governor Kathy Hochul signed a law banning certain bitcoin mining operations that run on carbon-based power sources. For the next two years, unless a mining operation uses 100% renewable energy, it will not be allowed to expand or renew permits, and non-compliant mining operations will not be allowed to come online in the state.
To my knowledge, this was the first time in U.S. history that a government body banned a specific type of computation from occurring, setting a dangerous precedent for all industries that use computation moving forward.
Many thought that this would not be signed into law by the sitting governor, but after the blow-up of FTX, it appears she felt that she had the political cover to sign the controversial bill into law.
Swan Bitcoin CTO Yan Pritzker pretty much summed up my feelings on this.
This ban will only serve to push entrepreneurs, jobs, and revenue away from the state of New York. It will be other states, like Texas, that will accept the additional business and innovation with open arms. This is the game theory playing out. You don’t ban Bitcoin, you only ban yourself from it.
Texas and Bitcoin are a match made in heaven. With its freedom-loving culture, independent power grid, and abundance of cheap energy, Texas is an oasis to miners who are shunned and chastised in other jurisdictions.
Bitcoin mining has the unique ability to be a flexible load demand on the ERCOT power grid, which makes it more reliable and economical.
Listen to ERCOT interim CEO Brad Jones explaining how flexible Bitcoin mining resources are helping grid operators with balancing energy and stabilizing the grid.
Today, ERCOT released a report that highlighted some of these use cases with Bitcoin miners in strengthening the power grid, and I thought Mags wrote a great thread summarizing it. (12/02/2022)
The intersection of the Bitcoin mining industry and the energy industry is one of the most exciting developments in 2022.
There will be Bitcoin.
Tick tock next block,
Sam Callahan
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"You don’t ban Bitcoin, you only ban yourself from it."
Love this.