How bitcoin mining can transform the energy industry: Summary

Our research report found that bitcoin miners are uniquely flexible energy consumers, allowing them to serve as energy tools to solve several energy problems. This article summarizes our report.

Bitcoin mining is a much-maligned industry due to its vast energy consumption. The criticism relies heavily on the assumption that bitcoin miners provide no positive externalities to energy systems and only serve as energy hogs forcing additional non-renewable energy generation.

Many of the harshest critics lack an understanding of both Bitcoin and energy systems. In this report sponsored by Cowa, we highlight how bitcoin mining can alter energy systems for the better.

We acknowledge that the brunt of the current mining operations does not operate in the ways we outline in this report. However, we believe that through necessity, mining operations will increasingly move in this direction. Professional mining is a young business. The skyrocketing bitcoin price combined with limitations in machine production made mining super-profitable in 2020 and 2021. Consequently, most miners' focus during this period was to get hold of and plug in as many machines as possible, almost disregarding electricity cost.

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