Bitcoin is fueling a green energy revolution, which is Satoshi's other major contribution.

Bitcoin is fueling a green energy revolution, which is Satoshi's other major contribution.

The greatest discoveries in human history have improved the world in ways that their creators could never have imagined. The Catholic Church's intellectual hegemony was partially destroyed by the printing press. Over 120 million people watch YouTube videos every day to learn about every topic imaginable, despite the fact that YouTube was originally intended to be a video-based dating service. And while Satoshi Nakamoto's 2008 Bitcoin white paper was initially intended to outline how decentralized and uncorruptible money may operate, it has instead inspired a revolution in how humanity views energy that is taking place right before our eyes.

The initial purposes of Nakomoto

Nakamoto, the anonymous person who invented Bitcoin, was very open about his motivations in his emails to cypherpunk email lists. He stated in 2011 that the core issue with conventional currency is the amount of trust necessary to make it function. The central bank must be believed to prevent currency depreciation, but the history of fiat currencies is replete with examples of this trust being betrayed. Banks must be trusted with our money, yet they only keep a tiny fraction in reserve while lending it out in waves of credit bubbles.

Nakamoto has succeeded in developing a digital, unreliable replacement for fiat money. About 25 million people have already purchased and held Bitcoin since the white paper's release 14 years ago today, and the technology that underpins it keeps making Bitcoin ever more user-friendly. One Bitcoin now costs approximately US$19,000 as of October 2022, a gain of 21,203,200% from just US$0.09 in 2010! 

The Bitcoin network, however, is useful for much more than just providing a reliable worldwide reserve asset, as Bitcoiners are increasingly finding. The Nakamoto's dream's Bitcoin mining element ends up being the answer to many of the world's energy-related issues.

Environmental advocates are alarmed by the Bitcoin network's energy consumption, which seems to be growing continuously. However, Bitcoin mining is the path to a healthier relationship with energy and the environment, potentially going against traditional knowledge.

Clean energy is sustained by bitcoin mining.

A white paper with the provocative title "Bitcoin is Key to an Abundant, Clean Energy Future" was published by Jack Dorsey's Square in April 2021. 

The demand for and supply of solar and wind energy are notoriously difficult to meet. Although the sun doesn't always shine and the wind doesn't constantly blow, society's need for energy never goes below zero. When societal demand for energy is low, someone must pay for the excess energy produced by renewable sources like solar and wind, and something else must choose not to use energy when societal demand is high.

Bitcoin miners can operate from anywhere on Earth as long as they have access to a power source and an internet connection. Additionally, if the economics warrant it, Bitcoin miners are completely capable and willing to momentarily turn off their equipment. Bitcoin mining is different from other occupations that need ongoing participation to remain successful (such as those of a supply chain or restaurant, for example).

Bitcoin mining has the potential to "subsidize" renewable energy sources that would not otherwise be commercially viable. The first-ever green Bitcoin mining pool was established in 2021 by Argo Blockchain PLC and DMG Blockchain Solutions, and additional pools are forming with the same goal.

Mining bitcoins removes waste

Additionally, stranded energy sources, such as waste methane, that would otherwise contribute to air pollution can be used by bitcoin miners. 

Methane is 30 times more warming than carbon dioxide over a century. The only technology that can consistently and scaleably lower human methane emissions is bitcoin mining.

Bitcoin mining has an impact on the environment, but it can also help cut methane emissions, according to climate tech investor Daniel Batten. According to his calculations, Bitcoin can help us prevent climate change by 0.15 °C by 2045, reduce methane emissions by 23%, and be net carbon negative by 2025. Bitcoin mining will ultimately have a carbon-negative effect, assisting mankind in preventing a global warming catastrophe by utilizing methane that would otherwise escape into the environment.

Since there are existing projects actively pursuing this paradigm, the idea that bitcoin mining may ingest humanity's waste and spew forth digital gold is not just a pipe dream.

Not everybody agrees.

Despite the evidence presented here, many people continue to worry about Bitcoin's rising energy usage. Bitcoin's greenhouse gas emissions are expected to reach 48.4 million tonnes of carbon dioxide equivalent this year, according to NBC, which many legislators view as a net negative. Furthermore, the Cambridge Bitcoin Electricity Consumption Index recently revealed that the proportion of renewable energy in Bitcoin has decreased since 2021, which has many people questioning exactly how revolutionary Bitcoin can be for how we interact with energy.

Regarding Bitcoin's substantial energy use: It is accurate to say that Bitcoin uses a lot of energy. But almost everything does as well; in fact, Christmas lights use more energy than the Bitcoin network, yet no one asks for the restriction of holiday celebrations. The energy expense is justified because digital currency is the most portable form of payment ever created and is accessible to everyone on Earth. People from all over the world, especially those affected by weak fiat economies, would not be swarming to Bitcoin in the first place if it were not the case. Additionally, Bitcoin uses less energy than the present currency system because the latter is what fuels the boom-and-bust cycle, which causes entrepreneurs to wastefully invest in businesses and endeavors that are destined to fail.

Regarding the short-term drop in Bitcoin's use of renewable energy, the Bitcoin network is still one of the greenest parts of the global economy. Furthermore, the mix of renewable energy used by Bitcoin will inevitably see brief variations over time. The underlying causes of Bitcoin's ability to support renewable energy and scaleably reduce waste emissions, which continue to hold up theoretically and are demonstrated in practice every day, are far more significant.

Better money will help the environment.

The most fascinating story now developing in the world of bitcoin is how bitcoin mining has the ability to completely change how we interact with energy and the environment. Although the EPA and the Department of the Interior have proposed new regulations to reduce methane for oil and natural gas operations, crypto-asset mining operations that capture vented methane to produce electricity can yield positive results for the climate by converting the potent methane to [carbon dioxide] during combustion... However, mining operations may be more dependable and effective at converting methane to CO2.

Recent Q3 2022 Bitcoin report from Messari included a mind-blowing bar graph illustrating the sustainable energy mix used in bitcoin mining (see Figure 1). By Q2 2022, this number has increased from an almost astounding 37% in Q1 2021, making Bitcoin mining one of the most sustainable global enterprises.

The concepts presented in Satoshi Nakamoto's white paper ought to be sufficient to place Bitcoin among the top inventions in human history. After all, there has never been a universal, unregulated financial asset that is impervious to inflation. But Nakamoto's invention has also ushered in a second revolution that was not mentioned in the initial paper, in addition to a revolution in how people view money. Bitcoin mining transforms what would have been harmful and climate change-causing waste into virtual riches, funding green energy initiatives and bringing online stranded energy sources remote from civilization.

Article Credit: Forkast News

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