The Energy Sector is seeing a complete paradigm shift.
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Bitcoin
Monetization of energy
Cheap energy production allows for cheap energy utilization
Cheap energy utilization allows for cheaper manufacturing, mining, etc.
Leads to an arms race of energy tech becoming more and more efficient and productive
Bitcoin.
Ripples and splashes are being made in the financial realm. Since its entry onto the world stage, the Bitcoin network has been growing. With each addition to the horde of nodes and miners that are scattered across the globe, Bitcoin digs in. Supplying the world with a financial vehicle that provides solutions to; Keynesian economics, inflationary monetary policy (including savings), and can not be forcibly removed from an individual or entity without consent.
If you can’t see the value there, well…I won’t hold you.
Fiat currencies have allowed a disease of the mind to proliferate. That disease is living beyond our means. With the popularity of false currency, companies and individuals are incentivized to spend more than they earn. We are at a time in history where companies that earn little to nothing are being allowed to survive, some even being valued higher than those that turn a legitimate profit. And that is just from the monetary side. Social media has seen a rise in popularity for groups and individuals to go into debt to simply project a life of luxury and excitement, with the reality being the opposite. Luxuries and services supplied by debt get rapidly destroyed when the bill is due.
Bitcoin’s hard money philosophy rewires the thought-processes of those that turn to using bitcoin as a savings-vehicle. The individual begins to worry less about the superficial, and narrows their vision onto purchases that provide the most utility and value to their life. Frivolous spending becomes a practice of the past, as they focus more on stacking, saving, and building their financial independence. For without financial independence, you are also without true freedom.
Bitcoin Mining & Energy Production.
Bitcoin mining is energy intensive — this is true.
Is there anything that isn’t, though? Consider the amount of energy that gets expended mining gold from the Earth. The amount of fuel and power utilized to power the mining industry, that is also tearing up our planet — all to acquire a heavy substance. What about the energy that gets used in the refining process? Then the transportation, packaging, and eventual shipping of said gold across the world.
Are we guilt-tripping anyone that is using up energy to watch Netflix in their free-time? Or what of those individuals playing video games? Are we considering the amount of energy that gets wasted in Politics? When a speaker is engaged in a filibuster? The amount of billable manhours that goes into this process — the work of interns, analysts, and drones that collect intel for politicians just so a speaker can practice a legal waste of time? And that’s without considering the valuable energy that goes in to the lighting, wi-fi, and heating/air-conditioning of the building.
Energy moralization is the podium from which the village idiot crows.
What Bitcoin mining actually does is far more revolutionary.
Right now the energy sector is stuck. Fossil fuels provide energy generation, but at a loss. Not only in the energy that is capable of being captured, but also at great cost (figuratively and monetarily) to the health of our global ecosystem. Renewable energies can provide power at less ecological cost, but are not free of the monetary costs with bringing them online, (or the mining of minerals that are necessary for energy capture). These renewable projects are also being financed by fiat money, the Keynesian, debt-reliant system that is rapidly being exposed as a disease. Bitcoin fixes this.
Bitcoin mining allows for renewable energy sources to directly monetize their capture process during non-peak hours. As the energy sector operates today, the majority of the operating time is not at 100% demand or utilization — suggesting inefficiencies and/or room for improvement. Energy production & distribution stands to gain massively by incorporating Bitcoin mining during their non-peak times. By shifting their operational power to Bitcoin miners (and mining pools) during these stretches of time where demand is not equal to the supply they are capable of — these entities get access and opportunity to direct monetary reward, for which; can then be stacked onto the corporate treasury or sold onto the market. Bitcoin’s trading market is active 24 hours a day, 365 days a year. Allowing pure liquidity to power production.
These operations [can] require minimal human presence once they are fully deployed. Because of this simple aspect, humanity can begin to monetize geographically distressed energy sources. Rivers & waterfalls can provide hydroelectric power without a heavy human presence. Wind & solar farms can be built in rural/barren areas that would make life for humans difficult. The fragility of humanity becomes less of a liability when it comes to energy capture, distribution, and deployment.
Game Theory.
Because of this radical shift in energy production profitability, we will (in my opinion) see an arms race play out. Rather than an arms race of military might like the Cold War days… companies and countries will begin to scramble to bring more energy production online to earn bitcoin. Cheaper and cheaper energy sources will become the focus of desire. Cheaper energy also entails cheaper upkeep costs. Renewables provide energy with far less cost to the environment, which is the greatest cost of all. What little does money matter if we strip-mine and burn ourselves to oblivion? The future lies with zero-cost energy. With Bitcoin — that future inches closer.
Cheap Energy & Tech (Industrial Revolution?).
Cheaper energy production and storage has been a focal point for the past decade in particular. In the summer of 2016 Tesla’s radical attempt to revolutionize the battery game was met with ridicule and laughter. Look at where the company is now — a mere 5 years later.
As Bitcoin causes energy generation to become radically cheaper via direct-monetization, those swelling savings bleed into manufacturing. In theory, cheaper manufacturing of goods allows for higher-quality products to be sold at cheaper and cheaper prices.
These goods include: household items, cleaning products, food, phones & computers, homes themselves, and so on. Bringing cost of living down and down as more Bitcoin Power comes online. As these costs come down, it also makes improvements much, much more actionable. Research & development is a costly process — trying new things costs manhours and goods to be expended and wasted in order to trailblaze new technologies and theories. Bitcoin Power allows for this process to become rapidly cheaper.
A meta-analysis published in 2019 brings to light that, as it would appear, each successive generation increases the average energy consumption. Suggesting that the youth of an era adopt & use technology more than their elders. Which I think we would all agree on.
Now, you may ask, “But isn’t that what technology in general was supposed to result in — cheaper prices because of the efficiencies that technological advancement bring.”
Bitcoin Power will propel the human species into the next technological era, an era we were supposed to be in decades ago.
This process allows for us to fix the issues that plague the United States of America today: education, healthcare, employment, and manufacturing. Bitcoin is the most American technology that has ever been brought into existence. Decentralized accounting, separation of money & state, and the return of low time preference thinking.
Cheap improvements upon tech + a population reverting back to financial resilience = a healthier, and better educated, population. Financially stable families are physically and mentally strong. These families become capable of partaking in higher education, possibly in the way of mentorships (not the farce of “higher education” that has become the collegiate stage).
Conclusion.
Ultimately what I am suggesting is that Bitcoin is, in-fact, a singularity event. Where it is a network effect within the financial system that is exorcising Keynesian economics, that inadvertently is exercising inefficiencies in the energy production sector as well. A network effect in economics that is causing a referring network effect upon energy.
While money is the vehicle that facilitates human ingenuity (via R&D), energy production and utilization is the super highway upon which that ingenuity-vehicle travels.
References:
https://journal.bitcoinreserve.com/bitcoin-a-bold-american-future/amp/?__twitter_impression=true
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