TD₿: How Bitcoin Mining Can Transform the Energy Industry by Anders Helseth and Jaran Mellerud
TL;DR Bitcoin miners can positively affect energy systems and improve the economics of energy production.
Hey Bitcoiners,
With the upcoming Ethereum merge slated to occur next week, if successful, I think Bitcoiners should expect a heavy onslaught of anti-Proof of Work rhetoric from the Ethereum camp from here on out.
You are already hearing proponents of Ethereum begin to recycle the same “99.5% energy consumption reduction” narrative. Of course, even if the transition to Proof of Stake is successful, I don’t think it is anything to celebrate. Moving to a less secure, inferior consensus mechanism is nothing to get excited about. For promotors to advertise that there is no cost to leaving Proof of Work for Proof of Stake is naive at best and disingenuous at worst.
Bitcoin’s energy use is a feature, not a bug. It protects Bitcoin from attack and creates powerful incentives that align the energy industry with the Bitcoin mining industry. Bitcoin is recruiting energy capital to secure its network. At the same time, the energy industry is plugging into Bitcoin for all kinds of benefits and will now actively defend the hash wall they're part of.
As Ethereum bends the knee to ESG and merges into itself, Bitcoin is merging with one of the most powerful industries in the world.
Arcane Research put out a wonderful report that explores some of the ways that Bitcoin mining will benefit the energy industry. (09/01/2022)
By removing the energy use from its consensus mechanism and disconnecting from the real physical world, Ethereum loses all of the security and decentralization benefits that energy brings.
Bitcoin’s energy use attracts powerful allies that will play an important role in driving adoption forward.
Tick tock next block,
Cory Klippsten
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