Bitcoin is the best form of energy that we humans have created — Bitcoin & Energy
We humans have managed to use energy for ourselves. This becomes especially obvious when we look at our planet at night. In the course of history, we have managed to use many different sources of energy. Food gives us energy for our life, with wood we can heat and with oil we run our machines.
Electricity is a natural phenomena that happens in many different ways throughout nature. The movement of electric charge is a simple definition of electricity. Electricity is a type of energy carrier that transports energy from primary sources to end consumers, who then transform it into energy services.
Bitcoin is the most secure and efficient energy utility we have as humans. So, as will be shown in a moment, it definitely makes sense to combine energy and Bitcoin.
Electricity may be found everywhere around us, in powering technology such as cell phones, laptops, lights and air conditioners. It’s difficult to avoid in today’s environment. Even if you attempt to avoid it, electricity is still there in nature, from lightning in a storm to synapses within our bodies.
“Bitcoin, as money, is backed by the work done to mine new bitcoin. Work is equivalent to energy, so both gold, bitcoin, and effectively any other type of money are all energy backed money because they take work to produce. In practice, it makes sense for energy to be the monetary backing of an economy because it is the very foundation of the known universe.” — Satoshi Energy Corp.
Henry Ford planned 1921 the development of an “Energy Currency” to replace gold.
““Under the energy currency system the standard would be a certain amount of energy exerted for one hour that would be equal to $1.” Ford suggested a currency backed in kilowatt hours (kWh) and this is exactly what was found for Bitcoin in Bitcoin’s Energy-Value Equivalence — Bitcoin is “backed” by energy input. Bitcoin has a fixed value through time based on the mining energy exerted and its supply growth rate.” — Read more about this specific topic here: https://medium.com/capriole/the-energy-standard-b726edeed588
Bitcoin and Physics
Many forms of energy are connected. Scientists have measured how much energy is needed to produce another energy. For example, you could compare how much energy it takes to heat water with how much weight you can move with the same amount of energy. Even though thermodynamic (heat) and mechanical (weight) seem different to us, they are the same.
“The energy of a closed system remains unchanged. Different forms of energy can therefore transform into each other, but energy can neither be created out of nothing nor can it be destroyed. Therefore, a perpetual mobile of the first kind is impossible (no system performs work without supplying another form of energy and/or without reducing its internal energy).” — https://de.wikipedia.org/wiki/Erster_Hauptsatz_der_Thermodynamik
“Bitcoin mining works by adding blocks of transaction records to Bitcoin’s public ledger of past transactions (the blockchain) for a reward of newly minted bitcoin (the block subsidy) and transaction fees (also paid in bitcoin). In order to perform this function, individual miners dedicate specialized computation (called hashrate) toward the proof-of-work algorithm (i.e. they expend energy) in a global competition for the mining reward.” — Satoshi Energy Corp.
The total energy of the universe is fixed. In Bitcoin, for example, electricity is consumed to provide computing power that secures the Bitcoin network. So energy is converted and added to the Bitcoin network. This transformation process is becoming more efficient due to the free market incentives.
Bitcoin the best energy storage
The bottom line is that Bitcoin is nothing more than a storage device for energy that becomes more efficient over time. This makes the Bitcoin network the best storage medium for energy. It is location-independent, digital, efficient and rewards cheap energy sources.
“The costs have fallen for a combination of reasons, including better technologies and production at scale, and more experienced renewable developers.” — Harry Kretchmer
All of these points are rewarded and promoted by Bitcoin. An investment in renewable energy pays off faster, you can produce more at scale, and you can convert energy regardless of the location. This is one of the most exciting topics related to Bitcoin and the energy transition. It is now possible to monetize renewable energy in a completely environmentally friendly way in remote locations. It is also possible to use surplus energy that cannot be used. If the power grid is already 100% utilized, one could use surplus and otherwise unnecessarily wasted energy to finance the energy transition with Bitcoin mining.
“Bitcoin miner stores surplus energy by converting it directly into hard money. As open wholesale power markets continue to offer increasing amounts of abundant low cost renewable energy, the market will find new ways to utilize that energy to improve the way we all live and work. One innovation that will be a foundation for many other society advancing innovations is bitcoin — energy backed money for a pro-human future” — Satoshi Energy Corp.
RENEWABLE ENERGY IS NOW THE CHEAPEST ENERGY
“The Levelized Cost of Energy (LCOE) for solar and wind has fallen 90% and 71%, 1 respectively, over the last decade. The unsubsidized costs of solar and wind energy are now 3–4 cents / kWh and 2–5 cents / kWh, respectively. Certain individual projects have had even lower costs. For context, the average LCOE for fossil fuels such as coal or natural gas is ~5–7 cents / kWh. This means that solar and wind are already at a lower price point than coal and natural gas. Solar and wind energy also just reached cost parity2 with both geothermal and hydroelectric, which at around 3–5 cents / kWh are inexpensive, but geographically limited. There will always be inexpensive individual sites for different power sources like hydro or geothermal, but on the whole, solar and wind are now the lowest cost and most scalable.” — ARK Investment
Bitcoin is the safest and scarcest energy storage we have. So you should use Bitcoin to convert electricity into the best monetary energy.
“Bitcoin miners, on the other hand, are an ideal complementary technology for renewables and storage. Combining generation with both storage and miners presents a better overall value proposition than building generation and storage alone.” — ARK Investment
“This whole universe is created of energy it is the per the of laws of thermodynamics. Everything in the universe is made of energy.” — Dan Held
We need focused energy to survive. Let’s store this energy safely and efficiently in Bitcoin. We have arrived at the digital information level, and for this we need a money, which has thermodynamic and digital properties.
“We humans and the entire universe, everything has an underlying energy. Everything that surrounds us is basically only energy & time. Energy is never wasted. Energy cannot be destroyed. Conservation of energy & thermodynamics ensure that any energy only changes the condition (f.e. movement becomes heat). So heat can result in movement, whereby we generate electric power. The whole is an eternal cycle from energy form to energy form.” — Roman Reher (translated by the author)
“Money is human’s highest form of energy. The ability to channel chemical, kinetic and gravitational energy is what has set humans apart from other species. In an economic setting, humans quantify the energy they have channeled by assigning it monetary value. Outside of Bitcoin, every other Store of Value asset class fails to transfer energy across time and across space. The dollars loses its energy across time by means of inflation. And across space by high bank transaction fees. Gold loses its energy across time by becoming commoditized. The mining industry has become oversaturated/ subsidized, resulting in an industry that operates irrationally; running where variable MC>MB. Real Estate: You can’t put a house in the Hamptons on a boat and ship it to Europe, it will lose its monetary value and its not fungible. Closing costs + yearly property taxes result in a loss of monetary energy across time. There will only ever be 21M Bitcoin. The monetary energy stored in the Bitcoin you own will never leak over time. One satoshi will always be (1/1M)/ 21M of the Bitcoin network. You can send Bitcoin with minimal fees, that reward the miners that secure the network. Secure your monetary energy with Bitcoin.” — @Chad_Peterson7
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