Bitcoin mining is good for the energy transition, scientists say (Patreon)

[This video seems to have upset some people. I'm not entirely sure why. First, this is totally a real paper that you can read yourself. Second, it's not like I support this idea. I merely found it an interesting argument. Probably even makes sense from a financial perspective.] 

According to a new study from researchers at Cornell, bitcoin mining could be used to power our transition to green energy. No, they’re not joking. At least I don’t think so.

Yes, Bitcoin mining has a bad reputation for eating up a lot of energy, but it has one big advantage over some renewable energy projects. It’s that it makes money.

You see, as we just talked about in a previous episode, while wind and solar is being expanded quickly, the grid expansion is lagging. There’s now a total of three thousand Gigawatts in renewable power capacity sitting around, unconnected to the power grid. And what use are your wind turbines if you can’t bring the power to people?

Well, according to the authors of the new paper, these sources of renewable energy could be hooked up to bitcoin farms, and that’d make them profitable faster.  

The authors identified multiple projects across the United States which, they say, could make millions of dollars immediately if they powered bitcoin farms rather than just waiting for a grid connection. This includes 32 planned renewable installations in Texas which could produce profits of 47 million dollars before they start operating commercially.

Of course, not all is sunny. The biggest problem with wind and solar also turns out to be a problem here. Renewable energy generation from these sources fluctuate with wind strength and sun exposure and can make bitcoin mining inefficient. There’s also the issue that Bitcoin mining operations also have upfront costs and other environmental impacts, such as mining the metal that’s needed for the computer equipment.

And then there’s the issue that if the bitcoin mining actually turns out to be profitable, why’d you ever want connect the power plant to the grid? Welcome to the future.