Illiteracy is a peril of the trade for anyone working in the technology sector.
Every month there’s another facepalm-inducing moment.
It’s the latest in a series of attacks on bitcoin mining by opponents who have failed to do their homework.
Energy usage is synonymous with human flourishing, so it’s right that it’s a key focus for policymakers, such as Thedéen, looking to improve the lot of those they govern.
Furthermore, by attempting to dictate the precise terms of how people and companies should use energy, regulators and governments are being short-sighted, overlooking the value that innovative new technologies can offer.
There are three main measures for evaluating the usefulness of different energy sources: reliability, abundance and cost.
The latter causes problematic power surges on the grid; the former forces nations to reintroduce fossil fuels into the mix, and at short notice.
But, for the foreseeable future, renewable energy just raises the cost of energy to the populace, both in terms of higher energy bills and higher taxes.
Renewables, like solar and wind are unreliable, expensive sources of energy, but as the sun shines and the wind blows intermittently, bitcoin mining improves power grid resilience by being able to absorb excess power caused whenever there’s excess renewable production.
But it is misguided to claim that it is diverting energy from other more worthwhile uses, when in reality, it acts as the energy buyer of last resort, an on-demand solution for harnessing energy when there’s over-production.
Furthermore, in the scenario where too little energy is being produced by the grid at large, or by renewable projects in general, bitcoin miners are one of the few demand generators able to quickly shut down operations to help the grid cope, as they most recently did in Texas when winter storms placed additional pressure on the system.
For example, there are thousands of geothermal energy sources in remote locations, far away from the nearest population centre and thus undeveloped by energy companies.
And while it’s understandable why a state or an economic bloc such as the EU might be afraid of a technology controlled by no one, to see influential regulators — whose role should be to ensure the proper functioning of markets perpetuating an incorrect understanding of their market and Bitcoin — is deeply concerning.
Moreover, it’s a great example of how intelligently-designed technology can perfectly align profitability with positive societal change — a point that policymakers would do well to comprehend.