Good Morning Everyone,
The base layer of everything is energy. The universe and its contents are all made from energy. You are energy. Everything you acquire is energy, and made from energy. We consume it, and we generate it. Currently within clown world there is a malware installed which seems to imply using energy is bad, and we should try and use less of it. The counter to this would be that the effective harnessing of denser and denser energy sources (hydrocarbons) is what has enabled us to innovate to our current point, and it is unlikely that we will advance and survive over time by using less of it. We would certainly get pretty cold in the process if we try.
I’m of the opinion energy use is good; and that bitcoins energy use is good. I’m pro human. Furthermore, i look forward to seeing bitcoin use more energy over time, not less.
A primary driver to enable this energy use is going to be the merging of the energy sector with bitcoin mining. Bitcoin mining is the ultimate load balancing tool. It can be turned on and off in an instant. Due to the genius of proof-of-work, the work being done when mining, or hashing, is completely random. Meaning each hash is independent of the next - there is no progress. Due to this under-appreciated thing of beauty it means there is nothing lost by switching off from a progress point of view. You can simply restart and continue hashing again at random.
Bitcoin mining can also capture stranded energy like nothing else, and convert the energy from local megawatts to global megawatts - accessible from anywhere. Not necessarily just anywhere on earth either! It also requires very little infrastructure to do so. Obviously it doesn’t transform the energy literally - it uses it - and then by using it, and mining - you mine some percentage of bitcoin. The beauty of bitcoin is that it can be directly monetised, and a growing liquid market exists for it. This fact enables that which was previously uneconomical - thus not possible - and not only makes it possible, but directly incentives people to go and do it. This is an insanely big deal.
The reason the load balancing is so important, is for energy companies to be incentivised to generate power, say electricity, they need demand. If the demand is too high, prices go up, and they need to either reduce load or bring on ancillary power supply (backup), otherwise they will not meet the demand and people will experience blackouts. If demand is too low, and there is no one wanting to purchase it, then they are just wasting the resources to have generated it, and are at a deficit for doing so.
This incentivises them to reduce supply, but then if demand increases a new problem emerges. You can imagine what a balancing act this would be.
Bitcoin mining is the ultimate buyer of electricity in this scenario, and that can turn off in peaks or other scenarios as required. There is a previously unforeseen level of flexibility available. Because of this, i believe that energy markets all over the world will look to integrate bitcoin mining into their operations. How this all plays out is anyones guess. But I believe this leads to the eventual merging of energy markets and bitcoin mining. The incentives for this to happen are clear.
What is so incredible about this is the fact that for us to live, and for us to thrive, we must consume energy. It is fundamental.
Bitcoin is incentivising humans, broadly speaking, to harness more energy and to source it more efficiently, and to use it (bitcoin) to support this endeavour; and by doing so creating a positive flywheel-like effect, a feedback loop, where it also incentivises us to adopt and support and strengthen the bitcoin network at the same time. Incentivising, and enabling, the use of the most sophisticated monetary network in human history, and for the network to become increasingly secure, and for energy to become increasingly abundant.
OMFG.
The rabbit hole just went a layer deeper!
Some humans may not be ready for this, but this is the most incredible innovation of our time; and over time, this is going to enable the most sophisticated version of human society yet. If those humans want to complain about it, at least they’ll be able to do so from a warm and comfortable environment :P
Hope you all have a great day. I’ll speak to everyone tomorrow.
AK
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