Why do these discussions so often assume electricity is a finite resource? Are people not able to turn their lights on because of Bitcoin miners?
When Bitcoin miners consume electricity shouldn't that increased demand affect the market price and dis-incentivize mining? What other use of electricity has such a high price elasticity? People don't turn off their ACs in the middle of summer because electricity costs are high -- they value comfort, a lot. But miners, IIUC, shut down their ASICs when they're unprofitable. Bitcoin mining is extremely price sensitive.
If Bitcoin mining is driving up local electricity prices it seems worthy of local regulation. It also seems like an incentive for increased energy production -- and given today's prices would most likely be clean energy production.
The report states Bitcoin's consumption is 39% clean energy. That is considerably higher than the overall portion of global energy consumption from renewables. Does this not mean Bitcoin is a large source of demand for renewable energy?
https://ourworldindata.org/grapher/share-electricity-renewab...
Increased demand increases prices in the short-run and incentivizes production -- decreasing prices, and further increasing usage in the long-run. Right? What am I missing?
When Bitcoin miners consume electricity shouldn't that increased demand affect the market price and dis-incentivize mining? What other use of electricity has such a high price elasticity? People don't turn off their ACs in the middle of summer because electricity costs are high -- they value comfort, a lot. But miners, IIUC, shut down their ASICs when they're unprofitable. Bitcoin mining is extremely price sensitive.
If Bitcoin mining is driving up local electricity prices it seems worthy of local regulation. It also seems like an incentive for increased energy production -- and given today's prices would most likely be clean energy production.
The report states Bitcoin's consumption is 39% clean energy. That is considerably higher than the overall portion of global energy consumption from renewables. Does this not mean Bitcoin is a large source of demand for renewable energy? https://ourworldindata.org/grapher/share-electricity-renewab...
Increased demand increases prices in the short-run and incentivizes production -- decreasing prices, and further increasing usage in the long-run. Right? What am I missing?