Opinion
[1]Bitcoin enables mining utilities to engage in agreements that are mutually beneficial to miners and the electricity grid.
Bitcoin enables mining utilities to engage in agreements that are mutually beneficial to miners and the electricity grid.
The House Hearing on Crypto’s Energy Use & Impact[2], held on January 20, 2022, was ultimately championed by a stellar defense of Bitcoin’s energy use by Brian Brooks[3], with an especially enlightening testimony from one John Belizaire[4], founder of Soluna Computing[5]. Belizaire and Brooks both laid out real-world examples of how Bitcoin mining is being used today to provide not only flexible income for utility providers and energy generators, but also providing stability for said networks. This is accomplished by mining operators engaging in agreements with these energy providers to turn off mining operations during times of high demand. I covered these points back in April of 2021 with my debut at Bitcoin Magazine here[6].
The relationship between energy utilities and miners doesn’t stop there. Mining operations also wind up providing a level of strength and resilience to the electricity grids by providing a manner for them to operate at near-max capacity with an opportunity for monetization during the moments of non-peak demand. This “new” revenue stream can allow providers to: accumulate capital (strengthening balance sheets), dedicate funds towards upgrades and improvements of services/equipment, expansion of services or perhaps to increase compensation/benefits for their employees. Ultimately, it does not matter how this new-found revenue is allocated or spent; the important point is that mining helps strengthen electricity grids.
My hat is tipped to these two gentlemen, well done!
More fuel for Belizaire’s testimony comes from Nic Carter’s podcast[7] “On The Brink,” released mere hours
