Bitcoin is Key to an Abundant, Clean Energy Future (by Square)

In this memo, we aim to explain how the Bitcoin network functions as a unique energy buyer that could enable society to deploy substantially more solar and wind generation capacity. This deployment, along with energy storage, aims to facilitate the transition to a cleaner and more resilient electricity grid.

Abstract:

“The Bitcoin Clean Energy Initiative has developed this short research paper as a starting point to share our vision for how bitcoin mining – in conjunction with renewable energy and storage – is especially well suited to accelerate the energy transition. To complement this work, ARK Invest has contributed an open source model that demonstrates how bitcoin mining could augment these renewable + storage systems to supply a larger percentage of a grid’s baseload energy demand for comparable or lower cost unit economics.

Bitcoin miners are unique energy buyers in that they offer highly flexible and easily interruptible load, provide payout in a globally liquid cryptocurrency, and are completely location agnostic, requiring only an internet connection. These combined qualities constitute an extraordinary asset, an energy buyer of last resort, that can be turned on or off at a moment’s notice anywhere in the world.”.”

April 2021

Bitcoin is Key to an Abundant, Clean Energy Future (by Square) April 2021