> So to sum up, part of the reason Bitcoin consumes so much electricity is because China lowered the clearing price of energy by overbuilding hydro capacity due to sloppy central planning. In a non-Bitcoin world, this excess energy would either have been used to smelt aluminum or would simply have been wasted.
The author goes on to explain that the bitcoin trading market becomes a worldwide distribution & settlement-input for the new energy distribution, if I understood correctly.
(I feel less confident in summarizing the carbon footprint points discussed)
> If Bitcoin ends up being worth substantially more in the future than it is worth today (say, by an order of magnitude), then the world will actually have received a discount on its issuance.
And this point seems a lot more intuitive.
Overall I have a lot of questions but am grateful for the shared insights from various positions. Thanks for sharing the article.