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- Bitcoin experts have authored a new paper that takes aim at the usually misleading and unresearched blanket claims, especially from politicians that Bitcoin is damaging the environment.
- Authors, including Nic Carter and Dennis Porter, argue that Bitcoin miners’ interruptibility during peak demand seasons is positive for the grid as it aids in flexibility.
“Bitcoin is damaging the planet!” How many times have you heard this in recent years, be it from politicians, economists, environmentalists, or mainstream media sources? A team of Bitcoin experts has now published a new paper to counter these claims, most of which are either wrong or grossly exaggerated.
BREAKING: New working paper co-authored by former ERCOT & NYISO CEO, highlights #Bitcoin mining as a critical tool for clean energy and balancing the grid. pic.twitter.com/86pXuQ1XxL
— Dennis Porter (@Dennis_Porter_) November 27, 2023
Aside from dispelling the half-truths and debunking the myths around BTC mining and its energy use, the paper proposes that this industry is “a possible catalyst for accelerating the global shift towards clean energy and effective power grid management.”
It notes that in the ever-evolving energy systems landscape, the ability of users to respond to a shift in demand and handle flexible load resources has become critical. Bitcoin miners are leaders in these two aspects, the authors argue as they possess inherent characteristics of swift response and are easily interruptible, enhancing grid flexibility.
As is proven in several countries, from the US to Iceland, Bitcoin miners excel at utilizing energy that would have otherwise gone to waste. This makes them leading agents “for improving grid efficiency and facilitating rapid growth in renewable energy production.”
By leveraging their unique attributes, Bitcoin miners demonstrate how they might contribute to the coming energy transition, highlighting the potency of cross-cutting financial and technological innovation in shaping a sustainable and interconnected energy framework.
Bitcoin Mining Isn’t Melting the Planet
The paper was authored by Dennis Porter, the CEO of Satoshi Act Fund, a non-profit that helps lawmakers formulate regulations that foster innovation while protecting investors. Others who pitched in included Castle Islands Ventures’ Nic Carter and Shaun Connell, the CEO of Lancium, a Texas company focusing on renewable energy.
Brad Jones, the former CEO of Texas grid operator ERCOT. Jones was highly involved in efforts to make Texas a crypto mining haven and signed deals with major miners before he passed away earlier this month.
Texas was a key focus for the team of authors. The state’s grid operator has signed agreements with miners in which they are required to shut down their mining rigs if the demand from the retail consumers spikes. They are then compensated for this, an agreement that has been criticized by some legislators, led by Senator Elizabeth Warren (D-MASS).
What the agreement does is ensure that in times of low demand, all the surplus power goes into an income-generating industry whose stakeholders pay taxes and give jobs to hundreds of locals.
The paper dismisses many of the arguments against BTC mining. While politicians have claimed that the industry is damaging the environment, the paper claims that mining is “an important tool for helping to reduce carbon emissions” as it monetizes waste gas.
The comprehensive impact of Bitcoin on global energy demand and climate change remains complex, with emerging data suggesting its effects might be more nuanced than conventionally believed.
