Bitcoin Promises a Future of Abundant Energy

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In its 12 years of existence, Bitcoin’s mainstream reputation has ranged from quirky internet money to baseless speculative investment to — for some — the ultimate store of value. Amid the various narratives surrounding Bitcoin, one critique seems to have never left its side: Bitcoin’s energy consumption is dangerously wasteful.

Sensational headlines have convinced the unsuspecting citizen that Bitcoin is incompatible with the environmentally conscious narrative. A look beyond first-order effects, however, reveals that Bitcoin may ironically be the key to a future of abundant, clean energy because it foundationally changes the energy industry’s incentive structure by acting as a market-aligned demand response capability and de facto insurance product. By aligning the interests of the environmentally conscious with those of investors and electricity providers, bitcoin mining serves as the long-awaited intermediary between emission reduction and profitability. By embracing bitcoin mining as a natural subsidy for electricity generation, nations around the world can set in motion an unprecedented wave of innovation in the energy sector and advantageously position themselves for a future of dramatically increased demand for electricity.

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