Why Bitcoin Mining is Good for the Environment – And why it isn't | Hacker News Reader

Why Bitcoin Mining is Good for the Environment – And why it isn't

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5 pointsmeinersbur4 comments

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I thought this was a good talk about energy use in the Bitcoin world.

Improved efficiency of computing hardware.

Increased development of renewable electricity.

Development of geothermal energy in remote /economically disadvantaged areas.

Use of surplus electricity and methane. Use of methane from landfills (and people farts).

On the other hand:

They are still using "lots" of energy.

Still using "lots" of coal and other fossil fuel sources.

Opportunity costs when using surplus sources (could be used else where).

All positive points are related to use of more energy, which of course would trigger research in renewables and faster hardware, but that already happens anyway with AI, fancier GFX in movies, medical simulations, space related stuff, etc. ...and of course the military. On the negative side, here's my view that I have never seen anywhere else: by mining bitcoin you invest directly in money creation, that is, there's no hiring people, no new business creation, no research aimed at product development, therefore much less knowledge and by extension a lot less jobs. What incentives would have investors to build, say, a motorcycle factory in a city, if a mining farm in some cheap desert land would make them richer for much less? Going straight from energy to money benefits only those who will cash that money, and a few others working in the energy or mining hardware fields, which however are already highly automated, so the influx of new jobs would be minimal.

> .. by mining bitcoin you invest directly in money creation, that is, there's no hiring people, no new business creation, no research aimed at product development, therefore much less knowledge and by extension a lot less jobs.

IMO your point is somewhat valid, though "no new business creation" is obviously an exaggeration. Every application of some technology (Bitcoin mining, to mention just one aspect, is highly technological, as are other aspects of putting the equipment somewhere and operating it) involves a very deep supply/maintenance chain, which diffuses investments through society, in part local, in part elsewhere.

I would agree that with Bitcoin mining, there may be less local investment in broader ranges of businesses on average, than with many other kinds of investments. But local development of business/society is a complex topic with many many aspects generating all kinds feedback, so it's IMO very hard to make general and yet truthful statements about this.

There's another aspect that comes to my mind: in a way, letting people invest directly in money creation, as you put it, can be a benefit to the environment. How so? Money being saved instead of being reinvested or spent immediately is effectively people taking their feet off the gas pedal of the economy. As long as the worldwide economy is still > 80 % fossil carbon based (energy wise that is, material wise it might even be more), deceleration should be mostly a benefit for the ecosphere/environment.

The geothermal project in remote areas in Kenya to mine bitcoin to fund conservation efforts and provide electricity for the small local population. This is easily a good humanitarian idea and can foster local economy.

The El Salvador (with geothermal power development) program could also be a nice way to fund government and boost local economies.

Using excess power generated by renewables can help fund the development the renewable power sources. In slack power times use the power for mining. It is done already in other industries.

Remember that the mining does not just generate bitcoins but is a way to pay people to maintain the bitcoin network. Instead of banks handling the transaction miners do. Having a functioning monetary system is generally a good thing. Not that we do not have this already but the crypto currency system offer an alternative. Concentrating on the mining is sort of missing the point of crypto currency.

I would not want to argue that all the project are meeting the stated goals. I am sure that lots of the real goals are for some to make a mint. There is plenty of corruption all around and this is not unique to crypto currency. It is not going to solve all the worlds problems but it has its positive points also.

Edit: Will also add that (just like more traditional banking) there are lots of people doing real work to make these things happen.

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