One of the main problems with the reduction of fossil fuels and the increase of renewable energy sources is the storage of excess energy for immediate use at later times. Bitcoin solves this problem by consuming energy at peak generation periods and storing that electricity as potential energy in the bitcoin cryptocurrency. Electricity producers can then sell the bitcoin and redeem the value that they stored in it. This is commonly referred to as the buyer of last resort. Modern electricity generation plants are already setting up bitcoin miners to consume excess electricity.
The connection between electricity and money will cause a mental shift in the way we consume electricity. In my area of the world I pay $.13/kWh. Because bitcoin miners can consume electricity during over-production and be switched off during under-production, bitcoin miners naturally incentivize cheap electricity production. Since electricity can be produced anywhere in our solar system, converted to bitcoin, transferred in-terrestrially, and used to purchase electricity, we will likely see an increase of remote electricity production.
댓글