The beneath is a direct excerpt of Marty’s Bent Problem #1155: “Two very various things that spotlight Bitcoin’s utility.” Join the publication right here.
There are two issues occurring on this planet on reverse sides of the planet which are associated to 2 very totally different topics that spotlight the unimaginable utility of the Bitcoin community; the intentional debasement of the Lebanese pound and uncharacteristically chilly climate in Texas.
As a few of you might pay attention to already, Lebanon has been embroiled in an financial disaster since 2019 and it appears to solely be getting worse because the nation’s central planners proceed to mismanage the disaster. Right here is their newest plans to repair their financial and banking system:
through Reuters
After locking folks’s cash of their financial institution accounts for nearly three years, the federal government has determined to easily obliterate an estimated $69 BILLION of wealth from the face of the Earth. Forcing folks to transform their US {Dollars} to Lebanese kilos with out their permission. All in order that they will probably get their books in a adequate spot within the eyes of the IMF to allow them to double down on their incompetence by taking out a predatory mortgage in an try to proper the ship.
Hundreds of thousands of individuals having their hard-earned cash disappeared earlier than their eyes. Actually unhappy stuff that’s fully avoidable transferring ahead. The best way this may be averted is by opting right into a financial system that can not be corrupted by the whims of incompetent politicians and bankers with a lust for printing cash. Bitcoin gives that financial system. If Lebanese residents determined to start changing their work to sats as a substitute of the failing pound and put within the effort to safe their very own keys, they might have considerably extra confidence that they will not be getting rug pulled like that once more. There are not any incompetent and corrupt politicians or central bankers which are capable of corrupt Bitcoin’s financial coverage on the detriment of its customers. These Lebanese who have been clever sufficient to transform their kilos to sats earlier than the good checking account freeze of 2019 are doing significantly better off than their fellow residents.
Bitcoin is a superior financial system plain and easy.
Right here in Texas we’re experiencing a chilly entrance that’s driving temperatures down into the low 20s (Fahrenheit). That is creating lots of demand for electrical energy as many throughout the state start to show up their warmth to guard themselves from the chilly. As electrical energy demand will increase it will be important that that demand is ready to be met with provide. That is one other space the place the Bitcoin community might help out through the mining business.
With the ability to present a dispatch-able load of electrical energy to residential shoppers when demand is abnormally excessive is essential. As I acknowledged within the tweet thread above, Bitcoin miners appearing as patrons of first resort for electrical energy which will in any other case not be generated if there wasn’t a purchaser presents a good way to make sure residents at all times have sufficient electrical energy as they should shield themselves from Mom Nature. When demand for electrical energy will increase to a sure level, miners can energy down and promote the electrical energy they might have used to mine to residential shoppers – often at a reasonably penny. That is taking place right now right here in Texas as miners like Rhodium and RIOT, who’re taking part in ERCOT’s demand response program, flip off their machines and promote that electrical energy to the market.
The system is not good but however the alternative to good it’s actually there. There are nonetheless a bunch of individuals LARPing that it is a good solution to make grids “greener” with extra wind and photo voltaic, however this argument would not make any sense if you consider it for longer than 30 seconds. As we noticed final yr in Texas when the grid did fail, it did so as a result of the solar wasn’t shining, wind generators froze over, a nuclear energy plant needed to shut down due to a defective sensor, and a few pure gasoline strains froze due to human error. In your Uncle Marty’s thoughts, the one manner a requirement response system works at scale is that if the vitality that’s being overproduced is from dependable sources like nuclear, pure gasoline and coal.
Two errors that may be fastened after taking a look at final yr’s Texas grid debacle are the nuclear sensor and the pure gasoline strains, which could be weatherized. Nobody on Earth can take away the clouds to let the solar shine on photo voltaic (coal) panels or stop freezing rain from grinding wind generators to a halt.
All efforts must be centered on growing extra energy technology from nuclear and pure gasoline so as to add dependable base load to the grid. And who higher to incentivize that than bitcoin miners who could be keen to pay for the electrical energy produced by these load sources when demand is not what it’s proper now.
It can be crucial that we’re trustworthy concerning the position bitcoin miners play with reference to grid stability and what’s really taking place once they do shed load to ship electrical energy to market; they’re promoting the electrical energy as a result of it’s extra worthwhile than mining as a result of they can promote it for significantly excessive costs as a result of demand is so excessive.
With that being stated, let’s not stray from the truth that that is an overwhelmingly constructive improvement regardless of the nuance across the subject. Extra time, it ought to develop into clearer how markets ought to construction these grid initiatives that cater to miners keen to return in as patrons of first resort. We’re watching Capitalism clear up an extremely exhausting downside and growing the standard of life for humanity.
Bitcoin miners could make grids safer if we execute accurately and do not attempt to LARP an excessive amount of about unreliable “renewables”.
Bitcoin is flexible. It may well assist these being robbed in Lebanon and people not desirous to go chilly in Texas
