The Invisible Hand and the Energy Industry

The invisible hand.

It’s a basic precept of capitalism, conceived by the great economic thinker, Adam Smith, in his book “The Wealth of Nations”.

It’s the idea that, in a truly free market scenario, where individuals are free to compete without barriers or restrictions, the natural competition driven by profit motivation will drive prices down while simultaneously improving production. The invisible hand pushes prices downward and moves quality upward as competitors seek profits from potential customers, without the need for any central authority to control supply or pricing.

Baffled by the invisible hand concept of free market economics, an aide sent by Gorbachev during the waning days of communism in the Soviet Union observed the free market system in London, admiring the ease with which one could access bread. Amazed with the efficiency of London’s apparent bread supply system, Gorbachev’s aide exclaimed, “Please take me to meet the person in charge of supplying bread to London. I must learn his secret”(source).

Of course, nobody was in charge of London’s bread supply system. Or, more accurately, one could say everybody was in charge. This is the great advantage of a free market. Bread is supplied by market demands. If more people want bread, more is made, because the people who are making the bread stand to make more profit. If a certain quality or type of bread is popular, more bread of that particular quality will be made to ensure greater profits. It is not controlled by any one central agency, and that is precisely why it works so well.

We are witnessing the beginnings of a shift in the way markets operate with the advent of blockchain technology. Of course, EnergiMine isn’t in the business of making bread, but the same principle applies to the energy industry. Through the EnergiToken project, the invisible hand can push consumers to energy-efficient behaviour, offering the profit motive as a natural enticement. As partners join with EnergiMine to broaden the appeal and utility of EnergiToken, customers will be further drawn to the advantages of free trade via blockchain technology.

Additionally, this free market extends to individuals who may choose to produce their own electricity via renewable sources availed to them through EnergiMine partners. Those individuals may then compete to provide energy to others who may then use EnergiToken to facilitate the free trade of energy, all without any need for central controls. Once again, the invisible hand will move energy from one to another in a competitive, free market eco-system, facilitated by a cycle of trade via EnergiToken.

The technology behind EnergiToken will change the world and EnergiToken itself will change the way energy is generated, traded, and consumed. This is the power of the free market, unleashed by the revolutionary powers of blockchain technology.

For more information about EnergiToken and its energy-saving reward scheme, please visit www.energitoken.com, follow on Twitter at @EnergiMine or join the EnergiToken Telegram group.