[HN Gopher] Kazakhstan to restrict crypto miners amid power shor...
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       Kazakhstan to restrict crypto miners amid power shortages
        
       Author : UglyToad
       Score  : 171 points
       Date   : 2021-11-03 13:16 UTC (9 hours ago)
        
 (HTM) web link (eurasianet.org)
 (TXT) w3m dump (eurasianet.org)
        
       | josephcsible wrote:
       | Wouldn't it make more sense to just let the price of electricity
       | go up?
        
         | DantesKite wrote:
         | It actually would to some extent in a country with capable
         | infrastructure. But I don't believe Kazakhstan has that luxury.
        
           | baybal2 wrote:
           | Kazakhstan used to have big oversupply of electricity. They
           | used to sell electricity to Russia before bitcoins appeared.
        
         | that_guy_iain wrote:
         | As far as I can tell cryptocurrency's value comes from how much
         | it costs to mine the currency. So that would just affect
         | everyone who isn't mining currency since the miners just offset
         | their costs by selling.
        
           | josephcsible wrote:
           | But cryptocurrency can be mined anywhere, not just in
           | Kazakhstan. If only Kazakhstan raises their electricity
           | prices, then the price of the cryptocurrency will basically
           | stay the same, but mining will naturally move elsewhere.
        
             | baybal2 wrote:
             | Kazakhstan been intermittently on the 1st, and 2nd place
             | for mining output since fall in Chinese output.
             | 
             | USA regained the firm lead after a few months when bigger
             | Chinese mines moved there.
        
           | exo762 wrote:
           | > As far as I can tell cryptocurrency's value comes from how
           | much it costs to mine the currency
           | 
           | This is wrong. Multiple currencies use proof-of-stake and
           | still have value. Price is determined by demand and supply.
        
             | that_guy_iain wrote:
             | > Multiple currencies use proof-of-stake and still have
             | value.
             | 
             | Are they Bitcoin valuable? Are they as valuable as proof of
             | work? I think not.
             | 
             | > Price is determined by demand and supply.
             | 
             | So the supply is lower because it's harder to mine so the
             | price goes up and because the price is going up demand is
             | higher. It's kinda like diamonds. Pretty useless but
             | because the big companies hoarde all the diamonds they keep
             | the price high and because the price is high people put
             | value in them.
        
           | gruez wrote:
           | You got cause and effect flipped. Cryptocurrency's value
           | determines how much money can be poured into mining it. If
           | bitcoin is at $60k, the block reward is 6.25 BTC, and there's
           | a block every 10 minutes, then the entire mining bitcoin
           | mining system can only consume 6.25 * $60k = $375k worth of
           | electricity every 10 minutes. If the cost of electricity
           | doubles, all that would mean is that the system can consume
           | half as much electricity.
        
         | ctur wrote:
         | Only if you want miners to have power and residents to be
         | without it.
         | 
         | Capitalism is not the cookie cutter solution to all problems.
        
           | fastball wrote:
           | Right but that's not the problem here? If there are power
           | shortages then the power companies should increase supply.
        
             | [deleted]
        
             | kazen44 wrote:
             | which might not be possible in Kazakhstan considering the
             | state of its infrastructure compared to energy use by
             | miners.
        
             | throw1234651234 wrote:
             | There is no capability to increase supply. See my other
             | post - Eastern Europe is out of coal and nat gas. Belarus
             | has excess energy from Nuclear, but is still triaging
             | exports. People will go without power this winter if this
             | isn't done.
        
               | fastball wrote:
               | So don't rely on coal and nat gas?
               | 
               | What about solar? Wind?
        
               | sudosysgen wrote:
               | Both solar and wind are simultaneously underperforming in
               | Europe at the moment because of weather phenomena that
               | reduce wind and increase cloud cover, plus of course
               | winter. There is no solution outside of nuclear, coal,
               | and nat gas. And Europe, save for France, doesn't have
               | enough nuclear to go around.
        
               | throw1234651234 wrote:
               | Europe tried that, now they are trying to buy more gas
               | from Russia. See Poland for an example.
               | 
               | The point of that real-time example? Wind and solar are
               | great, but they take time and the infrastructure is not
               | yet there. Nuclear is arguably cleaner and cheaper for
               | the output in the long term. Of course, infrastructure
               | for nuclear isn't there in Kazakhstan yet either.
        
               | oblio wrote:
               | Yup, the magic pixie fairy will manage to build out
               | electricity producing capacity that takes years to
               | decades to build in days, weeks or months at best.
        
             | tw04 wrote:
             | So the power company should spend tens to hundreds of
             | millions of dollars building out infrastructure for
             | subsidized bitcoin mining? And that makes sense how?
        
         | throw1234651234 wrote:
         | No. Role of government is to provide minimum standard of living
         | for general population. A lot of people will freeze in Kaza, as
         | basic necessities are a huge part of their monthly budget and
         | price hike is too severe to handle.
         | 
         | "Let market sort itself" only works if government thinks about
         | it in advance, have fair elections, low corruption, etc.
         | 
         | Cost of natural gas / coal / oil is going up significantly and
         | is a huge problem for all of Europe (not just Eastern) at the
         | moment. A lot of Eastern Europe will have rolling blackouts and
         | need to buy power from Russia / Belarus. Kazakhstan is in the
         | same boat in that regard. I would venture that they are
         | probably still on the USSR power grid as well and can buy
         | easily from Russia / Belarus.
        
           | baybal2 wrote:
           | Almost all residential heating in big cities in Kazakhstan
           | comes from cogeneration.
           | 
           | They would've gone bankrupt if they didn't do it with their
           | weather (-40<Cdeg)
        
             | xattt wrote:
             | So there is clearly a market for bitcoin cogen, either city
             | scale or the scale of a single dwelling.
        
           | BelenusMordred wrote:
           | This is such a bizarre comment given the history of price
           | controls and their horrendous outcomes.
        
             | toomuchtodo wrote:
             | Was working fine in Kazakhstan until the crypto folks
             | showed up to utilize subsidized power.
        
             | ovi256 wrote:
             | I think you mean history of generalized (applied to all
             | products and services) price controls, especially in a
             | planned economy. That definitely did not bring the hoped
             | prosperity.
             | 
             | They seem to mean price controls for a limited number of
             | essential goods and services, to ensure access to them for
             | the least fortunate groups. Energy definitely seems to be
             | part of this even in the most market-oriented societies.
             | 
             | One can look at cheap fossil fuels, and the unwillingness
             | of Western governments to make them more expensive by
             | integrating their negative pollution externalities into
             | their consumer cost, as a sort of ad-hoc price control.
             | Lots of social protests over living standards were
             | triggered by increases in energy costs - the Gilets Jaunes
             | in France for example.
        
             | kube-system wrote:
             | Price controls on utilities in the US are extremely common
             | and successful. There are good ways to implement price
             | controls and there are bad ways. Also, there are just as
             | many examples of bad outcomes when you treat markets which
             | are inherently unfree (i.e utilites, where infrastructure
             | is typically monopolized) as free markets.
        
             | roywiggins wrote:
             | Kicking Bitcoin miners off the grid seems like a great
             | alternative to price controls.
        
         | eldaisfish wrote:
         | this is such a narrow line of thinking.
         | 
         | Imaging the hubris required to even suggest that an essential
         | input to daily life should have its price affected by an almost
         | completely useless financial hedge for the elites.
        
           | mistrial9 wrote:
           | colonial empires have been the worst offenders here, no?
           | 
           | https://en.wikipedia.org/wiki/East_India_Company#Indian_Rebe.
           | ..
        
           | notreallyserio wrote:
           | I assumed, based on my experiences as a power consumer, they
           | meant increase the marginal price of electricity above some
           | threshold. That's how electricity is priced everywhere I've
           | lived (US). Maybe it's different on Kazakhstan, although I
           | don't think it'd be hard to implement.
        
         | rlpb wrote:
         | You could tax income from mining instead, which would have the
         | same effect but keep the electricity price stable for everyone
         | else.
         | 
         | A challenge might be in effective tax collection, but it isn't
         | that hard to find heavy electricity consumers.
        
         | pjc50 wrote:
         | That makes everyone else in the country worse off.
        
           | fastball wrote:
           | If mining is a net positive for Kazakhstani miners, doesn't
           | that make the country better off? That's a net export.
        
             | [deleted]
        
             | robjan wrote:
             | No, because everyone pays higher electricity bills while a
             | small number of people benefit from selling their mined
             | crypto.
        
               | fastball wrote:
               | How is this different from a factory that uses a lot of
               | electricity to produce shoes that are then exported?
               | 
               | I thought that was a good thing to have in your country,
               | but apparently because this is crypto it is suddenly a
               | bad thing?
        
               | depaya wrote:
               | A factory provides jobs to locals. A factory stimulates
               | the economy by creating local economic activity
               | (suppliers, logistics, construction, restaurants).
               | 
               | A crypto operation might provide a small fraction of
               | everything above while also producing nothing of tangible
               | value to society.
        
               | dotancohen wrote:
               | The traditional solution to that problem is taxation.
        
             | duxup wrote:
             | >If mining is a net positive for Kazakhstani miners,
             | doesn't that make the country better off?
             | 
             | How does that work?
        
               | AlexandrB wrote:
               | Trickle down economics kicks in, surely.
               | 
               | /s
        
               | fastball wrote:
               | If mining is profitable that means electricity is costing
               | less than the proceeds of mining. If these miners are
               | Kazakhstani, presumably they are spending the majority of
               | these gains in-country, or are paying taxes on the
               | proceeds. As such this should be a net gain for
               | Kazakhstan, since I assume the majority of people
               | _buying_ the crypto the miners are generating are not in
               | fact Kazakhstani.
               | 
               | This doesn't seem complicated tbh and I'm actually
               | struggling to understand why you wouldn't get this if you
               | generally understand net imports/exports.
        
               | AlexandrB wrote:
               | This is my sarcastic answer of "trickle-down economics"
               | just with more hand-wavy elaboration on how that might
               | work. Amazing!
        
               | pjc50 wrote:
               | > If these miners are Kazakhstani
               | 
               | Article implies a lot have moved from China.
               | 
               | > presumably they are spending the majority of these
               | gains in-country
               | 
               | Unevidenced assumption, that they are even spending the
               | gains at all - it's crypto, after all.
               | 
               | > or are paying taxes on the proceeds
               | 
               | Unevidenced assumption, probably false for crypto
               | libertarians.
        
               | duxup wrote:
               | I understand the imports and exports for goods that
               | employ people create services and etc.
               | 
               | Coin mining doesn't fit / necessarily that pattern at
               | all.
               | 
               | In the meantime they have power shortages so I'm not sure
               | at all what you're thinking about here... your idea of
               | cheap power is pretty meaningless when there's a
               | shortage.
        
             | oblio wrote:
             | Read and be enlightened:
             | https://en.wikipedia.org/wiki/Great_Famine_(Ireland)
        
         | notahacker wrote:
         | I mean, as an authoritarian state whose elections are generally
         | considered rigged they probably _could_ let their peasants
         | choose between darkness and food /heat to ensure wealthy
         | foreigners continued to to use their country to print
         | themselves money, but I'm not sure it would make sense to do
         | so...
        
         | FartyMcFarter wrote:
         | Maybe it would make more sense to you, but not to most people I
         | think. Electricity has much better uses than cryptocurrency.
        
           | golergka wrote:
           | If only we had an open, decentralised mechanism to figure out
           | what's a better use of a limited resource is.
           | 
           | Oh wait. That's exactly what "cost" is.
        
             | malermeister wrote:
             | Except that mechanism optimizes for profitability, not for
             | social good.
             | 
             | In this example it prioritizes made-up computer money for
             | already rich people over a Kazakh citizen having heating or
             | being able to refrigerate food.
             | 
             | It's a terrible mechanism for most things.
        
             | depaya wrote:
             | Put down your Ayn Rand novel for a second and gain some
             | empathy. A few rich crypto miners pricing many people out
             | of electricity is inhumane.
        
             | Taywee wrote:
             | Yeah, "cost" is one of the fundamental terms of economics.
             | So is "externality".
        
               | josephcsible wrote:
               | What's the externality of using electricity?
        
               | Taywee wrote:
               | Pollution (most electricity production is still coal-
               | based), raising electricity prices for everybody else,
               | contributing to an ongoing energy crisis (electricity is
               | going to start being rationed in Kazakhstan).
               | 
               | Electricity is a finite resource.
        
               | FartyMcFarter wrote:
               | Depends on the situation. If there's a shortage (or near-
               | shortage) of supply, the externality could be causing a
               | partial or total blackout.
        
             | oblio wrote:
             | Yup, I'm sure that every time we've let the market do its
             | thing, nobody suffered. I don't really want to get into too
             | much of what's very gross territory, but let's say that a
             | long time ago a certain nation controlling another nation
             | decided that the food from said controlled nation was
             | economically most useful being sold somewhere else.
             | 
             | The locals couldn't afford the "cost".
             | 
             | I'll let you put 2 and 2 together for the rest.
        
               | golergka wrote:
               | > a certain nation controlling another nation decided
               | that the food from said controlled nation was
               | economically most useful being sold somewhere else.
               | 
               | > The locals couldn't afford the "cost".
               | 
               | That sounds like one of the many soviet famines, which
               | happened exactly because there wasn't an open and free
               | market for said food.
        
               | oblio wrote:
               | Ireland. It was Ireland.
        
           | hanniabu wrote:
           | Easy, just require an pricy mining permit that can be used to
           | build renewable infrastructure.
        
           | baybal2 wrote:
           | All big scale BTC mines buy at industrial prices.
           | 
           | You cannot run a mine bigger than what your wiring can
           | support in your apartment.
           | 
           | None of them is using the subsidised residential rate.
        
             | yorwba wrote:
             | Are industrial prices not subsidized?
        
               | baybal2 wrote:
               | Certainly not, industrial use subsidises the residential.
               | And businesses have to pay for their grid connection to
               | the premises.
        
             | dpierce9 wrote:
             | Residential rates are not typically subsidized, they are
             | regulated and billed at cost plus. The only thing that can
             | be called a subsidy is a delay in raising costs. When local
             | utilities are required to supply at a fixed price and that
             | fixed price is less then cost + fixed profit margin, then
             | they are losing money. The remedy for this is to ask their
             | regulators to change the fixed price to account for both
             | the higher expected base rate and their losses during prior
             | periods. The utility commissions which regulate them almost
             | always grant such requests. In extreme cases, CA power
             | crisis, this can bankrupt utilities but in simple shifts of
             | the demand curve most utilities have great credit ratings
             | and can borrow to cover opex during the shortfalls.
        
               | baybal2 wrote:
               | It is https://www.globalpetrolprices.com/Kazakhstan/elect
               | ricity_pr...
        
               | dpierce9 wrote:
               | There being a price difference between business and
               | residential does not imply a subsidy. It can simply cost
               | more to distribute electricity to businesses, the time
               | power is supplied may be different, and the nature of
               | what is supplied may also be different. Commonly (in the
               | US) businesses have larger supplies, three phase power,
               | and lines and transformers may be buried or harder to
               | access. Midday electricity is also more expensive
               | typically and businesses use more electricity midday
               | (which is why it is more expensive). Further, businesses
               | may be charged real time rates while residential rates
               | lag spikes in price or are averaged over time.
               | 
               | That said, Kazakhstan may subsidize their power, I don't
               | know.
        
               | baybal2 wrote:
               | Kazakhstan's residential utility subsidies are 3% of
               | country's GDP.
        
               | sudosysgen wrote:
               | This is true in the US generally as well as some
               | countries with already very low energy generation costs.
               | For developing nations residential electricity is
               | normally subsidized.
        
           | Tenoke wrote:
           | Of course it does. It also has better uses than say gaming,
           | so if that is the logic maybe that should be banned, too.
        
             | p49k wrote:
             | Gaming isn't a major contributing cause to a country's
             | energy crisis.
        
             | FriedrichN wrote:
             | There is a difference between the two. That's like
             | comparing the fuel use or exhaust of a Fiat 500 to that of
             | a cargo ship.
        
               | Tenoke wrote:
               | Under your analogy we shouldn't regulate car exhausts
               | before we regulate cargo ships. At any rate, article says
               | 250k mining devices there so the electricity usage is
               | likely more from mining but not orders of magnitude more,
               | and even if it was it would suggest they are not banned
               | because of how useful it is (arguably gaming is even less
               | useful) but because of size. But sure compare to gaming +
               | TVs then.
        
               | FriedrichN wrote:
               | Analogies are meant to be used once. You shouldn't take
               | them and use them for another purpose.
        
             | oblio wrote:
             | Does it have better uses than a regular Kazakh citizen
             | being able to use the light bulb in their apartment? Or
             | their fridge?
        
         | GrumpyNl wrote:
         | Thats the weird thing, the more you use, the cheaper it can be
         | delivered to you, same with gas. It should be the other way
         | around, the more you use, the more expensive it should get.
        
       | Im_your_dada wrote:
       | Electricity = keeps you warm, cooks your food, powers your
       | devices.
       | 
       | Cryptos = suck that energy out of the power grid to gamble with
       | one another.
        
         | azth wrote:
         | > Cryptos = suck that energy out of the power grid to gamble
         | with one another.
         | 
         | All crypto currencies are used for gambling?
         | 
         | Can you give us a good solution to hedge against government
         | induced inflation that does not involve usury or having enough
         | cash to purchase property outright to rent it out? Note: almost
         | all companies deal with interest in some way or another, even
         | if they don't need to, so usury is embedded in their stocks.
        
           | honkycat wrote:
           | Can you give us a good solution to keep the price of bread
           | from rising above the ability for impoverished people to
           | purchase it over government induced inflation?
           | 
           | Oh right, I'm dealing with someone who believes in the "free
           | market" while plugging their ears when people talk about
           | subsidies for the gas, meat, defense, and other "profitable"
           | industries.
        
             | azth wrote:
             | > Oh right, I'm dealing with someone who believes in the
             | "free market"
             | 
             | I don't believe in absolute free market as defined by
             | capitalism. Case in point: I do not deal with interest
             | (usury), as it is prohibited in my faith. There are also
             | some other red lines which I will not get into here, as it
             | is not the subject of discussion. I'm happy to go into them
             | more though if someone is curious. As such, no, it is not
             | your typical capitalistic position.
             | 
             | > Can you give us a good solution to keep the price of
             | bread from rising above the ability for impoverished people
             | to purchase it over government induced inflation?
             | 
             | Yes. In Islam, we have something called Zakat, a form of
             | "wealth tax" if you will. Its proceedings go to
             | impoverished people, among others. It has been documented
             | that in Iraq during the Ummayad period, there were no poor
             | people left to even accept Zakat, after everyone was paying
             | their share.
             | 
             | Of course we still need to handle the root cause: move to a
             | currency that is not bound to interest that keeps growing,
             | and the government can print money at will, devaluing
             | everyone's hard work in an instant.
        
               | pfortuny wrote:
               | Interest is not the same as usury whatever definition you
               | use. The fact that your faith equates them does not make
               | them equal. You are perfectly free to use them
               | interchangeably in your mind but most people do not do
               | so, and your use leads to misunderstandings.
               | 
               | Interest, in traditional western societies is just the
               | measure of the present value of future time, which is
               | understood as valuable. Thus, money+time="more money".
        
               | azth wrote:
               | > Interest is not the same as usury whatever definition
               | you use.
               | 
               | In Islam, there is no difference. If I lend you $10,000
               | and I ask for $10,000.01 back, that $.01 is usury. They
               | are equal because both operate on the same exploitation
               | principle, that not only pries on the poor, but
               | exacerbates the wealth inequality gap that everyone is
               | complaining about today. Once the door is open to
               | artificially differentiate the two, many other immoral
               | things become acceptable. We've seen it time and time
               | again.
               | 
               | We don't deny the time value of money, we jus say that
               | use money in a moral way to extract value over time, by
               | taking appropriate risk in a manner that is not
               | exploitative.
        
               | ilammy wrote:
               | > _use money in a moral way to extract value over time,
               | by taking appropriate risk in a manner that is not
               | exploitative_
               | 
               | I've been reading on islamic banking recently, and I have
               | to say that it appears one can arrive at a consistent
               | philosophy and working economics with usury being
               | prohibited. The world won't grind to a halt because
               | capital is no longer entitled to gains by the virtue of
               | purely existing, as opposed to being used productively.
               | (Observe PoS vs PoW parallels, in the theme of this
               | submission.)
               | 
               | You can lend money and earn a profit _without_ interest,
               | and you can pay for getting a credit without it being
               | immoral. The trick is that both parties share both the
               | gains and the risk, not just the lender being responsible
               | for all the risk.
        
               | honkycat wrote:
               | Interesting! I didn't know about Zakat and Islams
               | relation to usury. Thank you for educating me!
        
               | azth wrote:
               | Any time :)
        
         | sharperguy wrote:
         | Miners are already looking into new business models which could
         | actually improve the financial viability of green energy
         | production, possibly driving down energy prices, rather than
         | driving them up:
         | https://www.forbes.com/sites/christopherhelman/2021/08/02/gr...
        
         | matheusmoreira wrote:
         | > Electricity = keeps you warm
         | 
         | Computers also generate heat. Wish I could use cryptocurrency
         | miners for my heating needs. Why burn fuel or pass current
         | through resistances for that?
        
           | throwaway946513 wrote:
           | There was a video I've seen someone, a year ago, setup a
           | 'pre-heater' for their home heating system with a mining rig,
           | so that the home heater doesn't have to use nearly as much
           | fuel/electricity to warm the home. I forget how efficient it
           | was, but the summary was that the net decrease in cost to run
           | the heater was observable but not significant enough to
           | justify everyone doing so.
        
             | matheusmoreira wrote:
             | That sounds freaking awesome. Do you know how to find it? I
             | found a company called Qarnot that's offering products
             | along those lines but they're probably extremely expensive.
             | A home project would be ideal.
        
               | throwaway946513 wrote:
               | While I don't remember which video it was - I think this
               | is a pretty close estimate to it[0].
               | 
               | [0]https://www.youtube.com/watch?v=uLO73bbIJtU
               | 
               | The premise was to only operate the miner in cold months,
               | when the outside air could easily cool the system. I
               | didn't fully re-watch this video but it does give a good
               | setup and explanation for it.
        
           | [deleted]
        
           | likpok wrote:
           | Crypto miners are pretty inefficient at heating your home.
           | 
           | A heat pump is more than twice as efficient as direct heat.
        
             | havkd wrote:
             | Maybe so, but they generate crypto, which heat pumps don't.
        
             | matheusmoreira wrote:
             | Can you elaborate? I've seen products that do this, it must
             | be possible.
        
               | vel0city wrote:
               | Resistive heaters use energy to create heat. Heat pumps
               | use energy to move heat.
               | 
               | For a resistive heater, its taking 1 energy unit from the
               | wall and putting 1 energy unit into the air.
               | 
               | A heat pump will use one unit of energy from the wall to
               | take 3-5 units of energy from one side of the system and
               | dump that 3-5 units of energy to the other side of the
               | system.
        
               | matheusmoreira wrote:
               | I see. Heat pumps must move existing heat from somewhere
               | though. Won't those come from burning fuels?
               | 
               | I have a lot of solar panels in my home. I'm generating
               | more energy than I'm using. I don't consider efficiency
               | to be a significant concern at the moment.
        
               | vbezhenar wrote:
               | You drill very deep shafts and move refrigerant up and
               | down. It's efficient but capital costs are huge. Usually
               | it does not make sense economically without government
               | regulations.
        
               | oblio wrote:
               | You don't even need that. Up to circa -20C you can use a
               | regular AC with an inverter and it would still work,
               | albeit at reduced efficiency.
        
               | progval wrote:
               | It moves existing heat from the outside to the inside of
               | the house. It works exactly like an air conditioner, but
               | in the other direction. (And some heat pumps are
               | reversible so they can be used as both)
        
               | thinkcontext wrote:
               | > I'm generating more energy than I'm using. I don't
               | consider efficiency to be a significant concern at the
               | moment.
               | 
               | I also produce a surplus and I sell it (for more than the
               | local utility charges to boot). More efficiency is more
               | money in my pocket, is it not for you?
        
               | vel0city wrote:
               | There's plenty of available heat outside, even when its
               | somewhat cold outside. This breaks down when it gets
               | _really_ cold, like arctic kind of cold, but most places
               | where lots of people live don 't get that cold for very
               | long. Its the same principle as how even when its hot
               | outside your AC unit can still manage to dump some heat
               | out there. Its because of the latent heat of the
               | refrigerant and the phase change induced by the changes
               | in pressure from the compressor. Its kind of hacking the
               | physics of phase changes to move energy from one place to
               | another.
        
               | JaimeThompson wrote:
               | This explains it far better than I can.
               | https://www.popularmechanics.com/home/outdoor-
               | projects/a2586...
        
             | bouncycastle wrote:
             | Yup. Also mining rigs produce a lot of noise, are more
             | likely to break down & need an internet connection 24/7.
             | Not your average heater.
        
               | thinkmassive wrote:
               | Immersion cooling makes it quiet and efficient, totally
               | suitable for in-home use.
        
               | bouncycastle wrote:
               | Cooling for your heater, genius idea!
        
           | vel0city wrote:
           | If you're using resistive heating, a computer is about as
           | efficient as a space heater.
           | 
           | I have not recently done the math, but I'm pretty sure in my
           | area its still more economically efficient to heat my home
           | with natural gas than resistive heat. Obviously, emissions
           | are a concern, future price uncertainty of fossil fuels, etc.
           | Not the best way forward.
           | 
           | However, heat pumps in my area can make a ton of sense.
           | They're far more efficient than resistive heating as long as
           | it doesn't get practically arctic cold outside. When in
           | decent climates they're about as economically efficient than
           | a gas furnace.
           | 
           | In other words, mining crypto for heat isn't necessarily the
           | most economical thing to do. It may just be better for you to
           | use a heat pump and put your savings into buying crypto if
           | ultimately having crypto and being warm is your goal.
        
             | jcadam wrote:
             | I use NatGas to heat my house here in Alaska (in-floor
             | radiant heat, quite efficient). But I also have wood
             | burning stoves and am surrounded by forest. If the price of
             | NatGas increases to the point it becomes unaffordable,
             | trust me when I say my carbon footprint will go up
             | dramatically. NOT heating my house is not an option in the
             | winter here.
        
               | Symbiote wrote:
               | If you're suggesting you'd burn trees, that's carbon
               | neutral (very nearly, maybe a tiny bit used to fell and
               | move them.)
        
             | [deleted]
        
             | matheusmoreira wrote:
             | > I have not recently done the math
             | 
             | What calculations are these? How do I figure out if it's
             | worth it?
        
               | vel0city wrote:
               | Assuming you already have a gas furnace (I do, was in the
               | house when I bought it), and the option is to either use
               | resistive heat (space heaters, computers, inefficient
               | lightbulbs) or the natural gas furnace, you would need to
               | look at two main things. The cost of electricity per BTU
               | and the cost of natural gas per BTU.
               | 
               | On a somewhat recent decently high gas usage month that
               | emulated a cold winter (forgot to turn off the pool
               | heater from spa mode on the whole pool circulation mode
               | for a few days...oof) my $/CCF (Centi-Cubic Foot) was
               | 1.22. Converting $/CCF to $/MMBTU, divide by 1.037 to get
               | ~$1.176/MMBTU.
               | 
               | Electricity is usually billed at kWh pricing. 1MMBTU =
               | ~293kWh. I pay ~$0.086/kWh, so 293 * .086 =
               | $25.198/MMBTU.
               | 
               | Obviously, you're not getting 100% efficiency with the
               | natural gas furnace. I think the one I have in my attic
               | which is almost a decade old is rated at like 85%
               | efficient. 90% efficient furnaces are available, some of
               | them don't even require a metal chimney as the resulting
               | air isn't even that hot.
               | 
               | But even at only 85% efficiency, you're still taking more
               | than 10x less dollars per heat.
               | 
               | This math changes when thinking about buying new
               | equipment and other factors. I haven't looked at
               | equipment pricing so it would be hard for me to say how
               | expensive it would be compared to alternatives. This can
               | also vary a good bit from your local market. Energy is
               | stupid cheap in my area, natural gas is a good bit
               | cheaper here than a good chunk of the US while
               | electricity prices are about median, maybe a bit lower.
        
               | vel0city wrote:
               | Oof, misnamed a unit there. CCF = _centa_ cubic foot.
               | 100, not 1 /100.
        
               | ashtonkem wrote:
               | Pretty easy.
               | 
               | Electric heat is 100% efficient. Natural gas is anywhere
               | between 80-97% efficient depending on your model of
               | furnace. Convert therms of gas[0] and kWh[1] to BTUs, and
               | multiply by efficiency and price to determine which is
               | cheapest[2]. Usually natural gas wins.
               | 
               | For emissions it's more complicated. You need to look up
               | the energy source for your grid[3], it will vary a bit
               | seasonally, and factor in transmission losses for
               | electric heat. You can then calculate the emissions per
               | BTU of natural gas heat vs. the emissions of the grid to
               | give you a BTU of electric heat. For most grids, natural
               | gas still wins.
               | 
               | Where this gets complicated is if you use a heat pump,
               | either a "mini split" (common in Europe and some new
               | apartments) or a ground source ("geothermal") heat pump.
               | These have a seasonally adjusted efficiency rating[4],
               | usually between 2 and 4. This means per unit of
               | electrical energy the unit is moving 2-4 units of heat
               | (depending on model and exterior conditions). You can
               | take the electric heating number from above and divide by
               | this number to figure out the cost and emissions for a
               | heat pump. Usually a heat pump will win on emissions and
               | lose on price (including installation costs) because
               | natural gas is very very cheap.
               | 
               | 0 - A "therm" of gas is the traditional measuring and
               | billing unit of natural gas in the United States, it's
               | equivalent to roughly 100,000 BTUs. Your bill will
               | probably be in therms, but cubic feet are trivially
               | convertible to BTUs too.
               | 
               | 1 - 1 kWh is 3,412 BTUs
               | 
               | 2 - You can either compare per BTU costs, or your
               | estimated monthly cost based on your heating need. The
               | latter is important if you have tiered or seasonal
               | electricity pricing. To figure this out take a sample
               | monthly gas bill from winter, subtract your summer gas
               | bill (if you have gas hot water) and use the calculations
               | above to determine your heating needs in BTUs. This lets
               | you calculate your electricity needs in kWh and therefore
               | costs.
               | 
               | 3 - It's important that this is a seasonally correct.
               | Most grids get dirtier as more polluting and less
               | efficient power plants are turned on for summer AC, often
               | coal power plants in most regions. Therefore the
               | emissions per kWh will vary on a month by month basis for
               | a given grid.
               | 
               | 4 - If we're being very precise, a non seasonally
               | adjusted number would be best here. An air sourde Heat
               | pump will struggle to extract heat from very cold
               | exterior air, reducing its efficiency. A ground source
               | one will be more efficient, given that ground water is
               | warmer than the air typically.
        
           | tablespoon wrote:
           | > Computers also generate heat. Wish I could use
           | cryptocurrency miners for my heating needs. Why burn fuel or
           | pass current through resistances for that?
           | 
           | Realistically? Cost. If your goal is to heat a space, it's
           | much cheaper and more reliable to NOT use thousands of
           | dollars of silicon. Doing calculations based on the site
           | below, you might be able to heat a smallish bedroom with a
           | _very_ beefy PC. I can get a space heater that puts out that
           | much heat for less than $50 and is far less likely to stop
           | working (e.g. heatsink gets clogged and system overheats).
           | 
           | https://www.stelpro.com/en/expert-advices/calculating-the-
           | ri...
        
             | adflux wrote:
             | I already have an rtx gpu. It nets about 8$ of eth a day.
             | Uses 250w. So that's around 1$ of power a day. And enough
             | wattage to heat my office. So I can get paid to keep my
             | room at a nice temperature. This is why I mine now
        
               | tablespoon wrote:
               | > I already have an rtx gpu. It nets about 8$ of eth a
               | day. Uses 250w. So that's around 1$ of power a day. And
               | enough wattage to heat my office. So I can get paid to
               | keep my room at a nice temperature. This is why I mine
               | now
               | 
               | Unless your office is the size of a closet, that doesn't
               | sound like it's enough to provide all of its heating
               | needs (at least according to the formula of the website I
               | linked).
               | 
               | It's certainly practical to provide to exploit heat
               | generated by computers to partially heat a space, but I
               | don't think it's practical to use silicon as the main
               | heat source.
        
             | gambiting wrote:
             | I mean, you laugh, but during winter in my office at home
             | whenever I get cold I just start running Folding@Home on my
             | pc, it helps cure cancer _and_ keeps me nice and warm. As
             | far as I can tell it 's cheaper than turning the heating on
             | in the whole house too.
        
           | 0des wrote:
           | My heater doesn't become less effective each year, requiring
           | replacement. While ASIC concretely implies this, GPU is not
           | excluded if you want to remain competitive (read: generating
           | profit)
        
             | matheusmoreira wrote:
             | It doesn't have to be competitive.
             | 
             | 4+ kWh electric showers are ubiquitous in my country.
             | Literally a dumb piece of metal resistance immersed in
             | water. Anything is better than the current situation. What
             | if it was a processor instead?
             | 
             | What if a bunch of home servers could heat up stored water
             | through their heat instead of just dissipating that energy
             | uselessly into the air?
             | 
             | We'd be getting the heat we need _and_ we 'd be helping
             | build a decentralized cash network. We were gonna spend
             | energy heating up stuff anyway. Might as well get some
             | cryptocurrency out of that heat.
        
               | bserge wrote:
               | A datacenter that doubles as district heating seems like
               | a pretty good idea.
        
               | thinkmassive wrote:
               | This is what WiseMining.io is addressing with their Sato
               | "bitcoin boiler." It uses hashcards (daughterboards
               | populated with mining ASICs) immersed in coolant to
               | augment a typical heat pump setup.
        
               | matheusmoreira wrote:
               | That's interesting. My search for products in this
               | category turned up the Qarnot company which also has a
               | "digital boiler". Apparently, it's a general purpose
               | Linux server that can be used to mine any coin or perform
               | any type of computation.
               | 
               | https://qarnot.com/en/heating-water/
               | 
               | Not sure if it's even available outside Europe. I wonder
               | if it's possible to somehow replicate this with a home
               | server. How is it pumping the heat out of the components
               | and into the water system?
        
             | rlpb wrote:
             | You might say that a regular electric heater is 100%
             | efficient, converting every unit of electricity into
             | exactly one unit of equivalent heat.
             | 
             | Crypto mining hardware is >100% efficient, as it's exactly
             | as efficient as an electric heater, but also generates
             | revenue. Over time, others make more efficient crypto
             | mining hardware, reducing the yield from yours. This causes
             | your "efficiency" to gradually reduce down to 100%, but no
             | lower.
             | 
             | However, nowadays we have heat pumps, which are also more
             | efficient than our 100% benchmark, and produce additional
             | useful heat.
        
               | hvis wrote:
               | > Crypto mining hardware is >100% efficient
               | 
               | It also makes the hardware depreciate (simply with the
               | passage of time, but also because of the particular
               | usage), which in practice effects the balance and can
               | easily turn the monetary efficiency into negative.
        
         | trixie_ wrote:
         | Technically if all electric space heaters were crypto miners as
         | well then crytpo mining would be well distributed, resistant to
         | attack and unprofitable to mine - win, win, win.
         | 
         | Edit: Looks like matheusmoreira below doesn't understand a 500w
         | electric heater and a 500w crypto miner produce the same amount
         | of heat and use the same amount of electricity.
        
           | matheusmoreira wrote:
           | Exactly! This sounds like the perfect way to create a
           | distributed proof-of-work network.
        
             | DonHopkins wrote:
             | More like Proof-Of-Waste, both of precious electricity, and
             | of precious rare earth elements and other materials.
             | 
             | Not to mention how much precious time cryptocurrency shills
             | waste, and dangerous greenhouse gasses they produce from
             | all the hot air of their rancid breath, by droning on and
             | on and on about cryptocurrency all the time, parroting all
             | the lies they heard in youtube get-rich-quick pyramid
             | scheme videos.
             | 
             | Another shill in this thread just mindlessly repeated the
             | same old lie they parrot all the time:
             | 
             | >Crypto helps accelerate the growth, demand, and build-out
             | of renewable energy.
             | 
             | That's like saying using more Cocaine helps you quit using
             | Cocaine faster.
             | 
             | "Cocaine makes me feel like a new man. And he wants some
             | too!"
             | 
             | In an unfortunate and unintended way, it's true...
             | 
             | And the absurd idea of using a crypto rig as a space heater
             | has already been completely debunked in this thread. Go
             | back and read it.
             | 
             | If it's such a great idea, then why doesn't everybody
             | already have one or a hundred of them, huh?
             | 
             | matheusmoreira: Do you really believe in get-rich-quick
             | schemes and perpetual motion devices and miracle cures,
             | even when you can't seem to find any for sale that actually
             | work? Then you must not believe in the free market, either.
             | Is it easier to believe there's a huge well organized
             | conspiracy suppressing these technologies, instead of
             | simply the laws of physics and economics?
             | 
             | Go back and read astoor's comment again, which trixie_'s
             | fancifully wishful reply simply doesn't refute. But of
             | course you can't argue facts with a true believer.
             | 
             | https://news.ycombinator.com/item?id=29095560
             | 
             | >Theoretically if every space heater right now was also a
             | crypto miner, it would make any dedicated mining operation
             | completely unprofitable.
             | 
             | If your grandmother had wheels, then she'd be a bicycle.
             | 
             | https://www.urbandictionary.com/define.php?term=If%20my%20g
             | r...
             | 
             | >Sir, this is a casino. Please direct your anger towards
             | Wall Street.
             | 
             | POS = Proof of Shock:
             | 
             | https://www.youtube.com/watch?v=SjbPi00k_ME
        
               | matheusmoreira wrote:
               | I'm just gonna ignore the hateful parts of your post.
               | 
               | > More like Proof-Of-Waste, both of precious electricity,
               | and of precious rare earth elements and other materials.
               | 
               | Is it really a waste if the heat produced is useful?
               | 
               | > idea of using a crypto rig as a space heater has
               | already been completely debunked
               | 
               | Where? I've read detailed posts describing that it
               | probably wouldn't be as efficient as other heat transfer
               | methods. Doesn't mean it is "debunked". I'm convinced it
               | could work in certain circumstances, such as availability
               | of free energy in the form of solar power.
               | 
               | > If it's such a great idea, then why doesn't everybody
               | already have one or a hundred of them, huh?
               | 
               | I don't know. I've been wondering for a while. That's why
               | I started a discussion. Maybe the idea is too new or
               | there aren't consumer products in the market that make it
               | easy for people to do it.
        
               | rfd4sgmk8u wrote:
               | If only we could harvest hate for energy, then we could
               | power our mining machines from your opinion alone!
               | 
               | Sir, this is a casino. Please direct your anger towards
               | Wall Street.
        
               | trixie_ wrote:
               | Did you miss the point? An electric space heater that is
               | also a crytpo miner would be the same efficiency.
               | 
               | Theoretically if every space heater right now was also a
               | crypto miner, it would make any dedicated mining
               | operation completely unprofitable.
        
           | astoor wrote:
           | There have been a number of startups selling crypto-mining
           | electric heaters, but they've all faced the same problems:
           | 
           | - They're much more expensive than normal heaters, and the
           | returns on mining don't make it cost effective.
           | 
           | - If you've spent that much money on heaters/miners, you're
           | going to want to max them out 24/7 before they become
           | obsolete rather than just switch them on when its cold, which
           | defeats the point.
           | 
           | - They'll also need to be upgraded every 6-12 months to keep
           | up with the mining arms race, and no-one wants to have to
           | replace their super-expensive heating system that often.
        
             | trixie_ wrote:
             | The chips can be less powerful, cheaper, and higher volume
             | because the goal would be to put them in millions of
             | heaters without increasing the base price too much. People
             | buying them would be for heat, not mining. It could be
             | advertised to save a few bucks on heating each month but
             | nothing major.
        
           | geraneum wrote:
           | But imagine when you want to warm yourself up in a cold time,
           | instead of plunging a simple heater in, you have to deal with
           | a machine which might even need to connect to internet to
           | work (if looking at current IoT devices is any indication). I
           | don't like to deal with such a complexity, unless they make
           | it so simple that I can gift a crypto heater to my suburban
           | grandma and not worry about installing it for her.
        
             | trixie_ wrote:
             | I'm sure it would still generate heat still without doing
             | anything other than plugging it in.. Stick a LTE chip in
             | there as a fallback to mine for the company's pool. Would
             | probably make enough money to offset the cost.
        
           | sudosysgen wrote:
           | A 500w crypto miner produces much less useful heat than even
           | the cheapest and most primitive 500w heat pump. So no, crypto
           | mining is always less efficient.
        
         | ineedasername wrote:
         | Easy solution: Mining generates heat to keep you warm and cook
         | your food. A peltier setup turns some of it into electricity to
         | power stuff. #rocket #diamondhands /s
        
       | g42gregory wrote:
       | I am not getting the sense that people, who talking about global
       | warming, will really follow up with the actions, when it concerns
       | their wallets or their quality of life. Look at the number of the
       | private jets at the COP26. Look at number of Hummers that Arnold
       | Schwarzenegger (whom I love btw!) owns. He talks climate change
       | but drives a Hummer.
       | 
       | By the same token, people with money, progressive or otherwise,
       | will continue to invest in crypto as it is the highest yielding
       | asset on the market. Kazakhstan became the 2nd largest crypto
       | miner, after the US. It looks like they are balancing the demand
       | for the energy supply between crypto miners and the rest of their
       | customers. This sounds like a very reasonable thing for them to
       | do.
       | 
       | We will see more regulations concerning the crypto currency and I
       | think it's a good thing for the market. The regulations will
       | ensure continuous growth and mainstream acceptance of crypto.
        
         | georgeecollins wrote:
         | To be fair, I think he is aware of the contradiction:
         | 
         | https://www.motor1.com/news/181048/schwarzenegger-shows-elec...
        
       | dr-detroit wrote:
       | Welcome to hell. Wait until you realize its a scam in plain
       | sight.
        
       | DonHopkins wrote:
       | Don't ever let any Bitcoin or NFT shills get away with lying to
       | you that their cryptocurrencies and CryptoKitties and Digital Pet
       | Rocks run on renewable energy.
       | 
       | And never let any of those get-rich-quick pyramid scheme shills
       | get away without forcing them to openly admit that even though
       | they're burning coal, wasting electricity, destroying the
       | environment, causing climate change, cancer, and heart disease,
       | they simply don't give a flying fuck about that.
       | 
       | https://en.wikipedia.org/wiki/Energy_in_Kazakhstan#Electrici...
       | 
       | >In 2013, the country produced 93.76 billion kWH - 70 billion kWh
       | (81%) from coal, 8 from gas and 8 from hydro. The country has 71
       | power stations, including 5 hydro power plants located on the
       | Irtysh river, which translates to total installed generating
       | capacity of 19.6 GW. 75 percent of electricity generated is
       | consumed by industry, 11 percent by households, 2 percent by
       | transportation.[25]
        
         | zozin wrote:
         | You could have made the same argument about the Internet itself
         | 20 years ago (i.e., a speculative new technology that provides
         | little evident utility while costing a lot in terms of energy
         | usage). What about Amazon's 2-hr delivery? Do you really need a
         | gas-guzzling vans delivering at all hours when the USPS will
         | come to your door daily anyway? What about ride share? How many
         | millions of people opted to ride alone in a gas-guzzling car vs
         | taking a bus or the train?
         | 
         | Energy usage is highly correlated with economic development,
         | trying to curtail energy usage is akin to economic suicide.
         | What you should be advocating for is clean energy production,
         | not consumption. You're headed down a precarious slope if you
         | start policing how and on what people can use energy.
        
           | sudosysgen wrote:
           | Amazon is a net positive for energy in car dependent places.
           | It's more energy efficient to drop something off than for
           | someone to drive to the store to buy it. You can get
           | significant economies of scale and those apply to energy
           | usage.
           | 
           | Beyond that, we can and will eventually force Amazon to use
           | EVs if they don't by themselves to save money, which is
           | possible.
           | 
           | I'm all for strongly inducing people to use trains, buses,
           | ebikes, and the like.
           | 
           | We can advocate for clean energy, and we should. But
           | advocating against zero-sum energy usage is perfectly fine
           | and completely consistent with good economic policy.
           | 
           | The internet never used all that much energy. The computers
           | were there anyways, and when it was in its speculative stage
           | it was piggy-backing off the telephone network for most of
           | the actual transmission. It was never even close to a power
           | hog until it became very evident how useful it was.
        
         | sparksparkapach wrote:
         | There are quite a few carbon neutral chains that people do
         | launch on. Most businesses do require energy but they try to
         | offset it. People are trying to shift away from mining for the
         | largest NFT blockchain though, ethereum.
        
           | sparksparkapach wrote:
           | This is just one and I'm sure there are more to come because
           | if the practice is unsustainable a large part of the
           | community would not support it in the long term.
           | https://medium.com/celoorg/a-carbon-negative-blockchain-
           | its-...
        
         | matheusmoreira wrote:
         | I wonder how much coal China burned to fabricate all the
         | computers necessary for you to post this and for everyone else
         | to read it.
        
           | [deleted]
        
           | AlexandrB wrote:
           | It's cliche at this point, but: https://thenib.com/mister-
           | gotcha/
           | 
           | I'm guessing since there are no hypocrites in crypto you are
           | all using non-fiat "coins" to pay your bills and buy
           | groceries, right?
        
           | politician wrote:
           | Looks like you're being downvoted by all of the people that
           | refuse to own up to their own hypocrisy over this issue.
           | You're exactly correct, of course. China manufactures the
           | vast majority of this equipment, and China runs on coal.
        
             | oblio wrote:
             | It's not hypocrisy.
             | 
             | We need computers for a lot of solid, real life uses.
             | 
             | We don't need cryptocurrencies for almost anything being
             | peddled. They're supposed to be decentralized, but you
             | can't really use them that way in 99% of situations.
             | They're supposed to be currencies and instead they're
             | vehicles for speculation. Etc.
             | 
             | I think their slogan should be: "You don't really need
             | cryptocurrencies for that".
        
               | matheusmoreira wrote:
               | I'll be the first to admit that bitcoin failed to achieve
               | everything it was supposed to. However, criticizing
               | cryptocurrency as a whole over _energy usage_ of all
               | things _is_ hypocrisy. It 's not even 1% of global energy
               | consumption. The world _is_ being destroyed, but not by
               | this.
        
               | honkycat wrote:
               | 0.55% of energy consumption[0] is not a trivial amount of
               | energy.
               | 
               | 0: https://hbr.org/2021/05/how-much-energy-does-bitcoin-
               | actuall...
        
               | matheusmoreira wrote:
               | Yeah, but in the grand scheme of things it's nothing. A
               | nuisance at best. If people really are worried about
               | climate change, they need to stop trading with China,
               | regulate big oil, invest in public infrastructure and
               | transportation, heavily incentivize development and usage
               | of clean energy sources, etc. Bitcoin is just a
               | convenient distraction from the _real_ problems.
               | Regulating it will contribute virtually nothing to this
               | cause.
               | 
               | At this point in time, there is no reason to care about
               | this. Maybe we start caring if some insane development
               | happens and BTC suddenly starts representing 10-20% of
               | our energy consumption. Until then, there are bigger
               | problems to worry about.
        
               | politician wrote:
               | Indeed. If folks weren't just virtue signaling about
               | climate change, then we could get on with tiling a third
               | of the State of New Mexico with solar panels to power the
               | North American hemisphere.
               | 
               | We already have the technology and the land area.
        
               | politician wrote:
               | PoW crypocurrencies are global communications systems
               | that offer nonrepudiation, instant settlement, and
               | finality; a subset additionally offer privacy. It's
               | valuable to people who need those guarantees. There are
               | speculators in every market.
        
               | oblio wrote:
               | > There are speculators in every market.
               | 
               | For crypto speculation is <<the market>>.
        
               | u2c4m6 wrote:
               | What crypto currency offers privacy?
        
         | yo_nigger wrote:
         | on_level? ?know if honk else username scream then doesn't
         | matter the decibels in your talk unless you declare the level
         | you are on for sure on your level, things seem bleak but on
         | another level, things seem honk
         | 
         | what ground do you stand on? when you scream your thoughts
         | whats the foundation your knowledge adors? how far do you go to
         | orgenize us all? shall we reached deeper so you can question
         | your soul?
         | 
         | what do you think happen on 911? whatever they say where do
         | they aim their informational canons? this, we hide away
         | 
         | get real man, you sound like a puppet on a string lacking the
         | substance, a barrel dropping a mountain woosh woosh look at
         | this guy scream
         | 
         | come front, you scared little weasel and repeat after me those
         | words "Chancellor on brink of second bailout for Banks" get-
         | rich-quick pyramid scheme are out of snacks
        
         | TacticalCoder wrote:
         | > Don't ever let any Bitcoin or NFT shills get away with lying
         | to you that their cryptocurrencies and CryptoKitties and
         | Digital Pet Rocks run on renewable energy.
         | 
         | Cryptokitties run on Ethereum and Ethereum is already partially
         | using PoS. Now from day one people have said "PoW does not
         | work" and yet PoW, so far, is still working. People are now
         | saying "PoS does not work" and yet, so far, PoS is working.
         | 
         | The cryptocurrencies haters better come up with something else
         | than the "energy" argument against cryptocurrencies because the
         | shift to PoS is coming and it's coming fast.
        
           | makeworld wrote:
           | _If_ PoS comes, it 'll be something to stop criticizing
           | Ethereum over. It'll still be useful to criticize
           | cryptocurrencies in general. See Bitcoin, Monero, etc.
        
             | hanniabu wrote:
             | > If PoS comes
             | 
             | Like they said, it's already here. The only thing that's
             | left is to end PoW which will happen within the next ~5
             | months.
        
       | booleandilemma wrote:
       | I've brought this up before and I was downvoted for it[0], but I
       | don't think I made my point clear enough last time.
       | 
       | People seemed to think I was questioning the soundness of the
       | algorithm, but that's not what concerns me. I was talking about
       | the concept of bitcoin itself.
       | 
       | What I'm concerned with is what if the true point of this thing
       | we have been led to call "bitcoin" is to destabilize countries.
       | What if it's a new type of nation-state attack, or virus, that we
       | haven't seen before. Something we don't yet have a word for.
       | Something that takes advantage of a country's citizens' greed
       | while doing things like disrupting power grids and causing
       | countries to be worse off than they would be without bitcoin.
       | 
       | It's like finding food someone left on your doorstep and eating
       | it without being worried someone is trying to poison you.
       | 
       | Most people that are supporters of bitcoin are driven by pure
       | greed. What if someone has found a way to weaponize greed?
       | 
       | [0]: https://news.ycombinator.com/item?id=28446571
        
         | gaspard234 wrote:
         | I have friends that joke that Crypto was introduced by alien
         | lifeforms or time travelers as a way to burn our environment
         | down before reaching Stage 2 of the Kardashev scale[0].
         | 
         | Human greed is too powerful for us to ignore the negative
         | impacts and it is destined to destroy humanity. I work in a
         | related space so I don't agree but it is interesting to think
         | about.
         | 
         | [0]https://en.wikipedia.org/wiki/Kardashev_scale
        
         | bufbupa wrote:
         | Sorry that I don't know how to present this more
         | constructively, but you sound pretty tin-foil-hat-y. You
         | argument seems to be just "I don't understand this thing, so
         | doesn't that mean someone could have introduced it out of
         | malice". As the replies from your previous comment stated, try
         | reading about the block chain protocol. It's definitely easier
         | to understand than the whole of our fiat currency system.
         | 
         | In my opinion, crypto is largely a ponzi scheme, so rest
         | assured I'm not saying this out of love for bitcoin. But I also
         | don't believe there's some master-mind illuminati behind the
         | scenes orchestrating this intentionally. This is a 100% open
         | and transparent protocol that people are supporting out of fear
         | of existing societal power structure. If you have a good reason
         | to suspect someone of manipulating crypto for some greater
         | purpose, present your evidence and let us evaluate it. But
         | vague paranoia about some puppet master's scheme sounds a bit
         | like crying wolf to me.
         | 
         | We as a society just haven't gotten good at pricing in
         | externalities (eg: carbon emissions) to consumer goods yet. If
         | crypto miners were providing enough societal value to afford
         | the excessive consumption of energy, then I think everyone
         | would be praising crypto as the next industrial revolution --
         | improving quality of life for everyone! But instead, I think
         | most people recognize it as siphoning value from many for the
         | benefit of a fortunate few.
        
         | honkycat wrote:
         | Government induced inflation is a useful tool for controlling
         | food prices and other economic concerns.
         | 
         | Allowing people to abandon their currency for another one only
         | used by wealthy people could starve people who do not make
         | enough money to catch up.
         | 
         | Look at the housing market. It has become a store of wealth.
         | And now people can't afford housing and we have a massive
         | unhoused epidemic.
        
       | ineedasername wrote:
       | The general public doesn't have the best grasp on crypto to begin
       | with. If it starts messing with their ability to go about their
       | daily lives with consistently available electricity at inflated
       | prices then mining in those impacted areas may die a quick
       | political death. Or have their facilities burned down by mobs
       | that need those fires to keep them warm.
        
       | agent_simon wrote:
       | Makes sense, since winter is coming and power needed to keep
       | people warm
        
       | zherbert wrote:
       | Bitcoin mining incentivizes the plentiful production of cheap
       | electricity. This will make it so that there are no such thing as
       | power shortages in the future and push us towards a Type I
       | civilization on the Kardashev scale.
       | 
       | Bitcoin mining reduces the risk for energy generation projects,
       | because they no longer need to worry about who will purchase the
       | extra capacity.
       | 
       | Bitcoin mining can act as a load-balancer for the grid - spin
       | down some machines if there is high demand, spin up machines if
       | there is low demand.
       | 
       | There are so many benefits. It is unfortunate that there is a
       | serious lack of understanding on this website.
        
         | jmcgeeney wrote:
         | If you're honestly looking for the best solution to plentiful,
         | on-demand, cheap electricity, energy storage via batteries is a
         | much better solution. Why burn up excess energy from a wind
         | farm, rather than storing it to be reused during peak periods?
        
           | poontang1 wrote:
           | Batteries are actually terrible at storing large amount of
           | energy for any significant period of time, otherwise this
           | would be the solution everywhere
        
             | jmcgeeney wrote:
             | You don't usually need to store energy for a significant
             | period of time, just until the daily peak. Last I checked,
             | the efficiency for charge + discharge was something like
             | 70%, which, in any case, is much better than the 0% energy
             | savings from using that energy to mine crypto.
        
             | AlexandrB wrote:
             | However bad batteries are at storing energy long-term, I
             | guarantee that bitcoin mining rigs are _worse_. It 's hard
             | for a battery to do worse than losing 100% of "stored"
             | energy immediately to heat.
        
         | labster wrote:
         | Bitcoin mining uses up all of the efficiency gains from energy
         | saving over the past decade, and more. Bitcoin incentivizes
         | carbon production by keeping electricity demand artificially
         | high, even dedicating entire coal power plants to a single
         | mining location. Therefore, cryptocurrency has already
         | guaranteed we will never have time to advance on the Kardashev
         | scale.
        
           | zherbert wrote:
           | That's preposterous, Bitcoin incentivizes production of
           | whatever energy is _cheapest_. That does not necessarily mean
           | fossil fuels, though it is often that those are cheaper.
           | 
           | Hydro is a perfect example. A sizeable percentage of all
           | Bitcoin mining is done with cheap hydro.
           | 
           | Bitcoin will do the same for nuclear, making it cheap and
           | plentiful.
        
             | labster wrote:
             | How does Bitcoin incentivize cheap energy? It only
             | incentivizes energy that has a marginal cost less than the
             | Bitcoin it can produce. As long as human speculation
             | outpaces finite resources, it makes economic sense to burn
             | the most expensive, dijon fuels. This is true even if
             | externalities are factored into energy prices, which they
             | aren't.
        
         | Aretas77 wrote:
         | Take the benefits and double them up to get the drawbacks.
         | 
         | The components used for mining could have much better use cases
         | and the raw material shortage does not make this easier.
         | 
         | I doubt that mining is the reason why
         | countries/companies/people are pushing for that cheaper green
         | energy.
         | 
         | Additionally, the cryptocurrency market right now is a mess, an
         | online casino one might say, where only few can benefit.
         | 
         | And to push prices up, people are encouraging others to buy
         | them, to push the prices up more and not because they believe
         | in the future.
        
           | zherbert wrote:
           | You think the current global financial system is energy
           | efficient? How about the raw materials used by global
           | militarizes financed by unending money printing? If you fast
           | forward a couple decades, and Bitcoin becomes the global
           | reserve currency, mining will be far more efficient than the
           | amount of enormous military spending and middle-eastern oil
           | production financed by fiat currencies and the petrodollar
           | standard.
           | 
           | You people are advocating for shutting down one of the most
           | important human advancements of all time - money that is
           | directly linked to energy.
        
             | Aretas77 wrote:
             | It is not efficient, I agree. But the cryptocurrencies
             | should be of low priority right now, there are much more
             | significant topics and problems, plus - how do you expect
             | people to use cryptocurrencies if they won't even have any
             | computers due to various shortages caused by the miners?
             | 
             | Maybe sometime, but not right now.
        
         | AlexandrB wrote:
         | Breaking windows incentivizes the plentiful production of new
         | windows. This will make it so that there is no such thing as
         | window shortages in the future.
        
       | thomcano wrote:
       | I didn't realized that Kazakhstan is one of the top giant miners
       | in the world. Is there any reason for this one?
        
         | vbezhenar wrote:
         | It shares border with China. Mining has been forbidden in China
         | recently, Kazakhstan has cheap electricity, they flocked here.
        
         | baybal2 wrote:
         | https://en.m.wikipedia.org/wiki/Vostochny_Coal_Mine
        
       | etaioinshrdlu wrote:
       | Is this even possible to restrict? Does this also basically ban
       | all datacenters until you prove you're not mining?
        
       | vimy wrote:
       | The crypto hate here is ridiculous. Every thread about crypto is
       | the dropbox thread x 10.
       | 
       | Unless you want to live in a dictatorship where the government
       | dictates what is and isn't a useful use of energy, the constant
       | bitcoin electricity usage hysteria is a waste of everyone's
       | energy. :-)
        
         | malermeister wrote:
         | Why does a government that regulates energy use have to be a
         | dictatorship? A democratically elected one could put measures
         | in place too.
        
         | oblio wrote:
         | Aren't there quite strict regulations about what you can use
         | electricity for, in almost every country in the world?
         | Especially at industrial scale.
         | 
         | I don't think you can just start your own power plant and/or
         | major consumer without a ton of permits.
        
         | sudosysgen wrote:
         | You're not free to use the grid as you please. That's not how
         | freedom works anywhere. The grid can decide to subsidize some
         | uses, tax others, and forbid some.
        
         | justbored123 wrote:
         | Yep, sounds like the problem is that they just can't get
         | healthy price market for electricity going to regulate
         | consumption by just increasing cost to certain brackets.
         | 
         | My shitty country has the same problem, too many illegal power
         | connections that they fail to properly control and punish.
        
       | cinntaile wrote:
       | I wonder if cryptominers in poorer countries speed up the
       | buildout of more stable and robust electricity networks in the
       | long run? I understand they sometimes stress it too much in the
       | short run such as here and then the regulators have to take
       | action but the interplay on a longer timescale would be
       | interesting to see.
        
         | [deleted]
        
         | nwah1 wrote:
         | You could say the same about whether bridges to nowhere
         | generate important economic robustness. The problem with this
         | view is it ignores that such activity crowds out the ability to
         | do something actually useful with the same resources, while
         | also producing all the same externalities (both positive and
         | negative).
        
           | cinntaile wrote:
           | You're talking about the broken window fallacy. I don't think
           | it's immediately clear that a more robust and stable
           | electricity network wouldn't lead to additional economical
           | and societal benefits thus making it a positive sum game?
        
             | notahacker wrote:
             | I don't think it's immediately clear that cryptomining
             | leads to a more robust and stable electricity network for
             | the people it outcompetes on power. The evidence of
             | Kazakhstan certainly doesn't point in that direction...
        
               | cinntaile wrote:
               | What do you mean by outcompeting?
               | 
               | I don't know the answer of course otherwise I wouldn't
               | have posed the question but I guess asking questions
               | qualifies for getting downvoted to -3. Some of you are
               | clearly sitting on all the answers but you're not sharing
               | them with the rest of us.
               | 
               | We see the short term results, my question was directed
               | at the long term. I don't think it really matters if it's
               | crypto mining or aluminum melters or any other energy
               | intensive industry, it just happens to be crypto mining
               | in Kazakhstan.
               | 
               | It just seems plausible since higher energy usage
               | correlates with BNP. (I know, I know tax havens are
               | exceptions to that rule.) If mining sticks around then
               | this may turn out well for Kazakhstan, from an economical
               | perspective.
        
               | notahacker wrote:
               | What I mean by outcompeting is that if rich cryptominers
               | are pricing poor Kazakhs out of an electricity supply
               | which was perfectly fine before, I don't see how that
               | counts as a win for their robustness and stability of
               | power supply.
               | 
               | And PoW crypto isn't like aluminium smelting. The value
               | of aluminium smelting isn't in winning an arms race with
               | other aluminium smelters based on how much power they
               | consume, so if you bring more power plants online at a
               | lower-than-average price, market logic doesn't dictate
               | that competing aluminium smelters should immediately seek
               | to buy _all_ that capacity until they 've bid the price
               | up to the original level.
               | 
               | The whole "crypto creates demand for innovation in power
               | supply" only makes sense if you believe people haven't
               | been investing in innovation in power supply because
               | there's been barely anybody that wants cheap electricity
               | for the past century or so! That _might_ be the case for
               | [formerly] tiny niches affected by new use cases, like
               | say, _lithium batteries suitable for powering vehicles_.
               | It isn 't the case for _Kazakh ability to keep the lights
               | on_
        
               | cinntaile wrote:
               | > What I mean by outcompeting is that if rich
               | cryptominers are pricing poor Kazakhs out of an
               | electricity supply which was perfectly fine before, I
               | don't see how that counts as a win for their robustness
               | and stability of power supply.
               | 
               | The article doesn't mention any of that though. It says
               | that the miners got cut off (rationed) because 3 coal
               | plants were offline. The regulator is stepping in to make
               | sure regular people and industries are prioritized.
               | 
               | > The whole "crypto creates demand for innovation in
               | power supply" only makes sense if you believe people
               | haven't been investing in innovation in power supply
               | because there's been barely anybody that wants cheap
               | electricity for the past century or so! That might be the
               | case for [formerly] tiny niches affected by new use
               | cases, like say, lithium batteries suitable for powering
               | vehicles. It isn't the case for Kazakh ability to keep
               | the lights on
               | 
               | Investments and innovation follow demand so now that
               | demand has risen and assuming demand stays high, what
               | should we expect will happen? This is not unique to
               | crypto, it just happens to be the driving force here. Of
               | course other industries can lead to similar outcomes. If
               | you think this will not lead to innovation and
               | investments, you are basically saying that cryptomining
               | deviates from the norm and you would need to justify this
               | claim.
        
               | notahacker wrote:
               | > The article doesn't mention any of that though. It says
               | that the miners got cut off (rationed) because 3 coal
               | plants were offline. The regulator is stepping in to make
               | sure regular people and industries are prioritized.
               | 
               | The regulator has stepped in to ration to avoid
               | cryptominers competing with the Kazakh poor for the
               | electricity that is left over. That sounds like the power
               | supply is less robust to me. (A quick google suggests the
               | power companies are claiming the shutdowns were scheduled
               | but the recent demand spikes weren't part of the plan...)
               | 
               | > Investments and innovation follow demand so now that
               | demand has risen and assuming demand stays high, what
               | should we expect will happen? This is not unique to
               | crypto, it just happens to be the driving force here. Of
               | course other industries can lead to similar outcomes. If
               | you think this will not lead to innovation and
               | investments, you are basically saying that cryptomining
               | deviates from the norm and you would need to justify this
               | claim.
               | 
               | I'm not sure why you're pretending I haven't already
               | observed what's different about POW cryptomining (unlike
               | other industries which tend to increase yields by
               | consuming less energy per unit of output than the
               | competition, miners seeking block rewards maximise yields
               | by consuming _more_ energy, which means they are highly
               | incentivised to consume _all_ increases in energy output
               | at a given price) or indeed why you are claiming that the
               | _norm_ is for increase in demand to result in something
               | becoming cheaper and more widely available (it invariably
               | has the opposite effect in the short term, and usually in
               | the long run too) in an attempt to shift the burden of
               | proof onto me, but doesn 't exactly create the impression
               | that you are arguing in good faith.
        
               | cinntaile wrote:
               | You are making assumptions about what I write, if
               | something is unclear simply ask and I will try to clarify
               | my argument. I am not saying the norm for an increase in
               | demand is to result in something becoming cheaper and
               | more widely available. I am saying demand spurs
               | investment and innovation. I am saying that this could
               | have beneficial effects such as a more stable and robust
               | electricity net as well as other societal benefits, since
               | this is what we usually observe when investments are made
               | and innovation happens. This is not unique to crypto
               | mining, hence why expecting something else to happen
               | would be outside the norm.
        
           | dannyw wrote:
           | To say it generates no value is a misstatement. Proof of Work
           | offers some value, it is just consumimg too much.
           | 
           | Think about as providing some form of uncensorsable money, eg
           | for orgs like Wikileakd, Tor Project, etc.
        
             | nwah1 wrote:
             | But the uncensorable aspect also allows money transfer
             | between organizations that we do want to censor, like
             | terrorists or those who prey on children. So even that
             | supposed benefit is largely nullified.
        
           | sharperguy wrote:
           | This point hinges on the assumption that bitcoin itself
           | doesn't provide any benefit to humanity.
           | 
           | If its a useless speculative asset with no purpose other than
           | as a ponzi scheme then yes, all energy used towards it is a
           | huge waste and needs to be eradicated immediately.
           | 
           | If it has the potential to allow people to save their wealth
           | under unstable regimes, as a long term hedge against
           | inflation, as away of getting people to save more instead of
           | spending every penny they have before it depreciates, to
           | cause real wages to rise again, to encourage actual economic
           | productivity rather than continually investing fake printed
           | currency into an endless series of economic bubbles producing
           | significantly more environmental damage than anything that
           | could occur as a result of bitcoin mining.... then it is not
           | waste.
        
       | ravenstine wrote:
       | Why not create incentives to mine crypto with solar?
       | 
       | Lower or eliminate any sort of capitol gains taxes on crypto
       | mined with solar, make solar panels tax free for companies that
       | mine crypto, and crypto would not only go up in value but the
       | solar industry would also be supported.
       | 
       | Oh yeah. The Federal Reserve and the central banks need fiat.
        
         | rank0 wrote:
         | Is this a serious suggestion?
         | 
         | Us peasants have to work for the government 4 months a year and
         | even after our take home we eat taxes on purchases, investments
         | and property.
         | 
         | But yeah, let's give crypto miners the tax breaks surely they
         | deserve it...
        
           | azth wrote:
           | > we eat taxes on purchases, investments and property.
           | 
           | Maybe lobby to lower taxes then?
        
           | ravenstine wrote:
           | It's serious to the extent that I'm introducing it as a topic
           | of discussion. Whether I wholeheartedly believe in it is a
           | different story.
           | 
           | As I mentioned to someone else, applying a solution to one
           | particular problem doesn't exclude it from being applied
           | elsewhere.
        
         | latchkey wrote:
         | https://oilcity.news/wyoming/legislature/2021/04/15/gordon-s...
        
         | sudosysgen wrote:
         | Because you could use that existing solar for more useful
         | things.
        
         | missedthecue wrote:
         | Why do we want to subsidize a huge block of solar panel
         | production going toward crypto mining? Not to mention the waste
         | of computing resources that crypto burns through on a constant
         | basis.
         | 
         | The core problem of crypto is that despite what its promotors
         | seek in vain to prove, it provides little societal value, while
         | requiring a constant flow of an enormous amount of resources.
         | This doesn't change whether your GPU farm is connected to a
         | coal plant or solar field.
        
         | graeme wrote:
         | Why would you want to give crypto a selective subsidy vs
         | subdizing solar for all? (If solar subsidy is your goal)
         | 
         | Picking winners doesn't work very well
        
           | ravenstine wrote:
           | Well, I didn't say it _couldn 't_ be subsidized for all. In
           | fact that'd probably a great thing. Just applying a potential
           | solution to one particular problem doesn't exclude it from
           | being applied elsewhere.
        
       | [deleted]
        
       | cletus wrote:
       | And so it begins.
       | 
       | In the developed world in particular, we're seeing the move away
       | from fossil-fuel power. This is good but currently relatively
       | expensive.
       | 
       | Crypto mining is starting to have very real impact on the ability
       | of other people to live. It is adversely and disproportionately
       | affecting poor people (who pay a greater share of their income
       | for power).
       | 
       | And at best crypto provides extremely limited utility for
       | society.
       | 
       | Crypto-mining apologists will point to figures that say "crypto-
       | mining uses mostly renewable energy". What this actually means is
       | that crypto-mining is focused on areas that have hydroelectric
       | power because it's the cheapest, generally.
       | 
       | While you might say that's still good, it's starting to raise
       | prices for other people. this has been an issue in towns on the
       | Hudson Valley in New York, for example.
       | 
       | Even if you believe the overall impact of crypto-mining is small
       | I _guarantee_ you it 's only a matter of time before politicians
       | start using crypto-mining as a convenient whipping boy.
        
         | paganel wrote:
         | > Crypto-mining apologists will point to figures that say
         | "crypto-mining uses mostly renewable energy".
         | 
         | Which is a shit take anyway because that means that non-
         | renewable energy (plus the renewable energy non-consumed by the
         | miners) is now more expensive for everyone else, it's the basic
         | law of supply and demand.
         | 
         | And in the process those miners are also making non-renewable
         | energy a more desirable investment because it now returns more
         | money to those who invest in it (because of said increased
         | prices people are now forced to pay for said non-renewable
         | energy).
        
           | njarboe wrote:
           | If big crypto-mining syndacates start using small scale
           | nuclear (as some have shown interest in doing) to be carbon
           | neutral, they could be on the vangaurd of proving out the
           | technology and be a net positive in the medium to long term.
           | 
           | They really want low, consistent prices for electricity.
           | Hydro gives them that but nuclear could also. Solar and wind
           | do not.
        
             | consumer451 wrote:
             | > If big crypto-mining syndacates start using small scale
             | nuclear...
             | 
             | Any volunteers for living in the exclusion zones?
        
               | floatingatoll wrote:
               | Seems fine to me. I already have nuclear irradiated
               | genes, I'm sterile, and I prefer nature for company over
               | human beings.
               | 
               | (If you were sarcastically implying that no one would
               | volunteer, you are mistaken. I encourage making your
               | point more clearly and with less sarcasm, since a
               | worthwhile discussion _is_ possible if you do so.)
        
             | malermeister wrote:
             | I keep reading that this or the other crypto thing had a
             | design flaw that caused people to lose millions.
             | 
             | I really don't want those same kinds of people running
             | nuclear reactors so I can read about how crypto scheme X
             | literally blew up.
        
           | nathias wrote:
           | so crypto doesn't count for supply and demand or what are you
           | saying?
        
           | cletus wrote:
           | It's sad that this gets downvoted because you're not wrong eg
           | [1][2][3].
           | 
           | [1]: https://www.newscientist.com/article/2284222-coal-
           | powered-bi...
           | 
           | [2]: https://fortune.com/2021/04/20/bitcoin-mining-coal-
           | china-env...
           | 
           | [3]: https://arstechnica.com/tech-policy/2021/09/old-coal-
           | plant-i...
        
             | latchkey wrote:
             | China has banned mining.
             | 
             | Update cause I'm getting down voted: the point is that the
             | quoted articles are talking about China and are therefore
             | outdated. I'm not referring to what is happening today with
             | regards to the movement of mining.
             | 
             | _Some_ miners moved to Kazakhstan, but the truth is, they
             | went global.
        
               | LurkingPenguin wrote:
               | Did you read any of the articles? China banned mining.
               | Chinese miners moved to Kazakhstan. Now Kazakhstan is
               | having power shortages.
        
               | latchkey wrote:
               | Apparently you didn't fully read the article. The
               | shortages aren't the miners, it is the fact that 3 plants
               | shut down...
               | 
               | "On October 15, the national grid operator, KEGOC,
               | announced electricity rationing after three major coal-
               | fired power plants shut down. KEGOC did not directly
               | blame miners, but it used language similar to the energy
               | minister's and said it was cutting off customers who
               | "over-consume.""
        
               | LurkingPenguin wrote:
               | > KEGOC did not directly blame miners, but it used
               | language similar to the energy minister's and _said it
               | was cutting off customers who "over-consume."_
               | 
               | And:
               | 
               | > "We have seen that our [country's] electricity
               | consumption has literally increased by 7 percent in one
               | year. That's a very big increase," Energy Minister Magzum
               | Mirzagaliyev said on September 30, noting that
               | consumption usually grows by about 2 percent per annum.
               | 
               | > _Mirzagaliyev linked the demand to mining_ and proposed
               | the government limit supplies of electricity to 1 MW per
               | mining farm and to 100 MW for the whole sector.
               | 
               | Where's the mystery here? Again, hopefully for the last
               | time: China banned mining. Chinese miners moved to
               | Kazakhstan. Now Kazakhstan is having power shortages.
        
               | latchkey wrote:
               | > China banned mining. Chinese miners moved to
               | Kazakhstan. Now Kazakhstan is having power shortages.
               | 
               | We wouldn't be reading about power shortages _at all_ if
               | 3 major power plants didn 't go offline.
        
               | malermeister wrote:
               | We also wouldn't be reading about them if crypto people
               | didnt increase power draw by 7%.
        
           | bobcostas55 wrote:
           | Energy is not fungible. Just because you have electricity in
           | place A doesn't mean you can get it to place B in a cost-
           | effective way, so mining next to, say, a hydro station with
           | spare capacity (where electricity is cheap) doesn't
           | necessarily have any impact at all elsewhere.
        
             | bryanlarsen wrote:
             | What an odd take, given that electricity is almost the
             | poster definition of fungible. Sure there are transmission
             | losses, but they are very minor.
             | 
             | It's not perfectly fungible, but nothing in the real world
             | is, everything has some sort of shipping costs. I can't
             | think of anything more fungible than electricity except for
             | virtual items like dollars.
        
               | SAWZALL wrote:
               | THANK YOU! Finally, someone with a fully functioning
               | brain cell.
        
             | paganel wrote:
             | I disagree, the hydro stations that we have in place were
             | in fact meant to transport electricity from place A (a
             | mountain area, in most of the cases) to place B (where
             | people actually live) in cost-effective ways, that was
             | their purpose from the very beginning. Using that energy up
             | increases the price people from place B have to pay.
             | 
             | You could say that one could build a new hydro station just
             | for delivering energy to crypto miners but that would open
             | another can of worms as we're slowly starting to realise
             | that hydro stations are not the most environment-friendly
             | things imaginable (especially when it comes to habitat loss
             | and disruption).
        
             | acdha wrote:
             | It's not that simple because these imbalances won't last
             | forever. If the cost of renewable power remains low, it
             | will encourage people in those regions to buy EVs,
             | electrify their homes and businesses, relocate industrial
             | usage to that area, etc.
             | 
             | If crypto-miners jump in to soak up that excess capacity,
             | that cycle doesn't happen and there's very little positive
             | outcome to show compared to all of those uses. 50 years
             | from now, people are going to wish electrifying normal life
             | had happened quickly but they're not going to be using a
             | blockchain or glad that some speculators were able to make
             | large returns for a few years.
        
             | eldaisfish wrote:
             | What you must also mention is that electricity is a finite
             | resource. Consuming electrical energy - even at a hydro
             | power station - means the energy you used isn't delivered
             | to somewhere else.
        
               | mr_spothawk wrote:
               | is electricity finite? i don't think so.
               | 
               | you might say that the grid can only support a certain
               | load at a some given time, but obviously more energy
               | _could_ be provided.
               | 
               | in any case, i think it's silly to concern ourselves with
               | (specifically Bitcoin's) energy consumption, as it's tiny
               | compared to the efficiency gains that are realized
               | elsewhere as a result of bitcoin's adoption.
        
               | quickthrowman wrote:
               | Yes, electricity is finite. Just because you could add
               | more power generation doesn't mean it's infinite, c'mon
               | now.
        
             | latchkey wrote:
             | Specific example:
             | 
             | Coinmint in upstate new york is located in an old Alcoa
             | aluminum smelter plant that has long shut down. It gets
             | power from Moses Saunders dam a few miles away. The factory
             | was originally placed near the dam so that it could provide
             | massive amounts of power to keep the pot lines hot 24/7.
             | 
             | The whole place is super remote. I've seen the costs for
             | carrying hundreds of MW just a few miles and they are
             | massive at this scale. You can't just economically build
             | more lines to send the power elsewhere.
             | 
             | Short of firing up the superfund site again and smelting
             | aluminum, a bitcoin mine is literally the most profitable
             | thing you could use this power for. The dam needs
             | maintenance and a constant draw of power to keep it
             | operational, and this pays for it.
             | 
             | Since the power lines are direct from the dam to the plant
             | and the contracts were all drawn up decades ago, this has
             | zero impact on the local community prices. Never mind that
             | the local community doesn't draw anywhere near enough power
             | compared with what the dam produces.
        
               | ilamont wrote:
               | The crypto miners who set up shop in Northern NY to take
               | advantage of cheap hydro and wind power caused
               | electricity prices to spike for local residents,
               | resulting in municipalities leveraging new taxes on the
               | companies or issuing outright bans. This article is from
               | 2018:
               | 
               |  _Plattsburgh went over its power allotment and was
               | forced to purchase electricity on the open market for far
               | higher prices. This cost was distributed among the city's
               | residents, some of whom ended up paying between $100 and
               | $200 more for their electricity than usual._
               | 
               | https://www.vice.com/en/article/8xk4qv/bitcoin-ban-
               | plattsbur...
               | 
               | Massena (near the Alcoa facility) this year issued a
               | moratorium so the city could draw up new regulations:
               | 
               |  _"The moratorium is a pretty straightforward procedure.
               | The language is relatively clear. The idea is that we
               | place a moratorium on any further cryptocurrency mining
               | development while we get some regulations in place that
               | will govern those types of facilities. The planning board
               | had indicated, and I agreed that the code lacked any real
               | regulatory scheme for these types of facilities within
               | the town," Mr. Gustafson said._
               | 
               | https://www.nny360.com/communitynews/business/town-of-
               | massen...
               | 
               | https://www.northcountrynow.com/letters/snake-oil-alert-
               | bloc...
        
               | latchkey wrote:
               | You picked off the easily googled articles that are
               | unrelated to Coinmint and happened during the crypto boom
               | in 2017 / 2018, when people were renting warehouses and
               | filling them with miners. Everyone got rightfully pissed.
        
               | dogman144 wrote:
               | Ya would have to agree. That far upstate NY, it's a
               | different game.
               | 
               | The other aspect to consider, which is being dropped, is
               | Coinmint operates with support from NYS via Empire State
               | Development, so there's that.
        
               | SAWZALL wrote:
               | THANK YOU! EXACTLY!
        
               | ilamont wrote:
               | The article about the moratorium is from the summer, and
               | if you are looking for the Coinmint angle, here you go
               | (dated July 23, 2021):
               | 
               | https://www.northcountrynow.com/news/massena-town-board-
               | plan...
        
               | latchkey wrote:
               | You are just googling articles and not even reading them.
               | Coinmint is mentioned in there, but there is no 'angle'
               | in that article other than the mention. They are still in
               | operation today and expanding and I doubt that is going
               | to change any time soon.
        
               | SAWZALL wrote:
               | Oh, PLEASE! POST MORE _VICE_ LINKS, YOU SILLY MORTAL.
        
               | jamincan wrote:
               | There's on the order of 7+ million people within 150km of
               | the dam. I don't think I would call that remote.
        
               | dpierce9 wrote:
               | Not to mention that all New York power plants, including
               | Moses Saunders, are connected to a massive electrical
               | highway that runs straight to New York City.
        
               | latchkey wrote:
               | The lines from Moses Saunders to the plant are direct.
               | You can even see them on google maps if you zoom in and
               | follow them.
               | 
               | You can't just suddenly push more power through the same
               | lines.
        
               | dpierce9 wrote:
               | The Moses Saunders dam is connected to the NYISO
               | transmission network. The power system in New York is
               | designed to move power north to south, west to east
               | (lines tend to be symmetric in theory but a good model is
               | that the city is the load). You can look at a price map
               | of New York State and see that. Power from the dam can go
               | from it to anywhere else in New York (or the eastern
               | interconnect) at the cost of transmission losses and
               | tolling. Drawing power directly from a hydro plant
               | doesn't make that power green because, insofar as the
               | plant could supply electricity to the rest of the grid,
               | it means your power usage has the same environmental
               | impact as the average unit of electricity on the grid at
               | that time. The only thing it does is reduce your cost.
        
               | latchkey wrote:
               | The amount of load that is allocated to the Alcoa
               | facility has been negotiated and fixed into contracts and
               | capex has been spent to build out the infrastructure for
               | that. It isn't like you can just flip a switch and direct
               | the power to the NYISO.
               | 
               | > at the cost of transmission losses and tolling
               | 
               | ... a key point that I feel you're glossing over.
        
               | dpierce9 wrote:
               | Yes you can flip a switch and direct the power elsewhere,
               | that is what switching yards do. The plant might have a
               | supply contract with Alcoa but if Alcoa doesn't use the
               | supply they contracted for you they don't have to throw
               | the power away. Usually those agreements have take or pay
               | provisions which require the buyer to pay regardless of
               | whether they take the power. If they don't take the power
               | the generator is free to sell it on.
               | 
               | Transmission losses are not nothing but they are not
               | huge. Maybe 2% to New York (it isn't they far). Maybe 5%
               | total if you include distribution.
               | 
               | Edit: Follow the lines out of the plant, at 44.978432,
               | -74.797925 they split.
        
               | Scoundreller wrote:
               | This does make me wonder how difficult it is to raise the
               | voltage on the same lines by changing transformers.
               | 
               | You might need to separate the lines more (and need
               | bigger insulators), but I wonder how much of this gets
               | overbuilt at the point of construction so you can upgrade
               | to run more energy over the same wires without replacing
               | them.
               | 
               | Anyone know?
        
               | jamincan wrote:
               | The NYPA is in the process of upgrading the Massena-
               | Adirondack transmission lines which will initially be at
               | 230kV, but later be able to be run at 345kV.
               | 
               | https://www.nny360.com/news/stlawrencecounty/power-
               | authority...
        
               | dogman144 wrote:
               | Lol your 150km loop captures Ottawa, Montreal and
               | Kingston in Canada and Watertown/Plattsburgh NY.
               | 
               | All of these are about as apples to oranges in relation
               | to geographic ties to Massena as you can get.
               | 
               | Between Massena and those places is a whole lot of
               | nothing for a couple hours.
               | 
               | That's like saying there is some meaningful geographic
               | tie between Bethlehem, PA and NYC (133km), or that "Unity
               | House, PA" is not remote because it's 143km away from NYC
               | and its 8.4mil residents.
        
               | latchkey wrote:
               | Do you know how much to costs, per km, to run and
               | maintain those lines?
        
               | jamincan wrote:
               | You seemed to be asserting that without a major user near
               | the dam, they would need to build more transmission lines
               | or otherwise waste the generating capacity available.
               | 
               | This seemed unlikely to me, as transmission grids are
               | built with significant redundancy, especially for the
               | high-voltage networks. For example, the transmission
               | capacity for the 8 500kV circuits from Bruce Nuclear
               | (ignoring 3 230kV circuits) is 1.5 times the generating
               | capacity. I wasn't sure about this particular station,
               | but with a bit of digging, it seems like the Massena-
               | Adirondack lines alone (there are several others) can
               | carry 900MW, which is more than the capacity of the power
               | station. So no additional lines should be needed.
        
               | oblio wrote:
               | I can't be that much since we've had long distance high
               | voltage transmission lines for decades, even in
               | relatively poor countries.
               | 
               | Plus, if you really wanted to because there was no other
               | use, you could, you know, shut down the hydro power plant
               | and return the land to nature. Hydro power plants still
               | have an environmental impact, no point in running them
               | for what is practically, speculation.
        
               | latchkey wrote:
               | In the US, the people who pay for those lines are the
               | consumers and it isn't cheap to run. This translates to
               | more expensive power bills.
               | 
               | Shutting down the dam isn't going to happen. It is split
               | by Canada and the US and does more than just power
               | Coinmint.
        
               | Symbiote wrote:
               | The lines are cheap enough to run. About 1-2% of the
               | electricity cost in the UK.
        
             | jcranmer wrote:
             | People don't build hydroelectric plants in, say, northern
             | Quebec and suddenly discover that there's all this free
             | energy and no one around to use it. The build those
             | hydroelectric plants _and_ the transmission lines to places
             | (say, Montreal) where people need that energy, even if
             | those lines are 1000s of km long.
             | 
             | The electricity may be cheaper next to that hydro station
             | because you're not _also_ paying for the 1000km
             | transmission line. But your use of that electricity would
             | preclude the people 1000km away from using it.
        
         | Nextgrid wrote:
         | Taxation could be a solution though, with rebates for low-
         | income people and individuals. This means that the
         | disadvantaged still get access to cheap power, where as crypto
         | miners have to pay the (taxed) price which makes their
         | operation less profitable.
        
           | AlexandrB wrote:
           | It's not uncommon for poor people to not have spare money to
           | float some taxes to the government for up to 12 months until
           | they can get their rebate at tax time. That's assuming that
           | the rebate is easy enough to get for 100% of those eligible
           | to claim it.
           | 
           | This seems strictly worse than just taxing "mined" bitcoins
           | more harshly.
        
         | politician wrote:
         | Would you be bothered if folks built their own solar farm to
         | power crypto mining on their own independent grid?
        
           | oblio wrote:
           | Any way you skin this cat, resources are limited. So it would
           | be taking away resources from other uses.
           | 
           | Plus producing solar farms is harmful to the environment, as
           | is running them.
           | 
           | Unless you actually use solar farms for something useful, you
           | know, replacing stuff with a higher negative environmental
           | impact.
           | 
           | Building your own power grid for crypto speculation is kind
           | of the textbook definition of greed and selfishness.
        
             | politician wrote:
             | The Sun is not a limited resource, not until we're a K2
             | civilization anyway -- and we're no where close to K2. The
             | other materials in solar panels are abundant and reusable.
             | There is plenty of unoccupied desert to build on.
             | 
             | In what way are resources limited?
        
               | TomSwirly wrote:
               | > The Sun is not a limited resource,
               | 
               | Photovoltaic cells and the materials to use them _are_
               | limited and the amount of power produced by solar today
               | is _very_ limited.
               | 
               | > not until we're a K2 civilization anyway
               | 
               | People should read less science-fiction and look at the
               | actual world as it exists today.
        
               | politician wrote:
               | Yes, let's look at the actual world as it exists today:
               | the land area required to power the annual global energy
               | consumption (110 TWh) with the inefficient solar panels
               | that we have today is smaller than the US state of New
               | Mexico.
               | 
               | How's that for pragmatics?
        
               | sudosysgen wrote:
               | Hyper pure quartz for photovoltaic solar is limited.
        
               | philipkglass wrote:
               | Are you thinking of purified silicon? Silicon is made
               | starting with quartz, quartzite, or similar minerals rich
               | in silicon dioxide. Crude silicon always requires
               | additional purification for solar uses after it's
               | initially created, so the purity of quartz going into the
               | electric furnace isn't critical.
               | 
               | You can see the process flow from raw materials to
               | completed PV modules here:
               | 
               | http://oasis.mechse.illinois.edu/me432/ME432_L31_Nov4.pdf
        
           | nitrogen wrote:
           | A bit, because that solar manufacturing capacity wasn't used
           | for reducing global carbon emissions or other direct human
           | needs.
        
             | politician wrote:
             | On the contrary, it directly reduces global carbon
             | emissions by removing a load from a grid that has not been
             | decarbonized.
        
         | bena wrote:
         | I think the other thing ignored is that crypto tends to take as
         | much power as possible.
         | 
         | Making crypto more efficient wouldn't make it use less
         | electricity, it would just increase the number of miners. And
         | you'd be a fool not to do that because only one node becomes
         | part of the chain and the more you mine, the greater your
         | chances you get that golden ticket.
         | 
         | Crypto will always try to get power usage as close to 100% as
         | possible from every possible source. We never get off of fossil
         | fuels unless crypto stops being a thing.
         | 
         | And not to mention, being at capacity all the time is a bad
         | thing. In something you want available all the time, you want a
         | lot of potential capacity in case of failures or demand spikes.
        
         | nathias wrote:
         | crypto provides a very important social utility to the poor,
         | the only hope that they might stop being that
        
         | morning_gelato wrote:
         | It does not appear that this particular electricity shortage is
         | caused by moving away from fossil fuels. The coal plant
         | shutdowns mentioned in the article were outages (2 unplanned
         | and 1 planned) [1] rather than permanent closures due to an
         | energy transition.
         | 
         | [1] https://www.nasdaq.com/articles/kazakhstan-rations-power-
         | aft...
        
         | FriedrichN wrote:
         | Even if it did use mostly renewable energy, which I doubt (I've
         | heard some buy old coal fired plants to run their mining
         | operations), it's still energy that could have been used for
         | something useful. It takes away power for real enterprises and
         | people that use it for their daily living.
        
         | _fat_santa wrote:
         | An important distinction here, this really only applies to PoW
         | (proof of work) tokens. The original philosophy for Bitcoin
         | being proof of work is that you had to give up something
         | (electricity) to produce it.
         | 
         | Your comment is very true for Bitcoin and other PoW tokens but
         | that will soon be in the rearview mirror as more and more coins
         | either come out as PoS (proof of stake) or migrate to it (in
         | the case of Ethereum), even Bitcoin is taking about migrating
         | to a PoS model.
         | 
         | Crypto will evolve past this.
        
           | cletus wrote:
           | This has been a popular defense for several years now. For
           | awhile I too bought into it. But there are real questions
           | about whether it can ever work and won't in fact be
           | vulnerable to attack.
           | 
           | The best evidence for this is that PoS hasn't happened
           | despite years of talk about it.
        
             | dlubarov wrote:
             | > But there are real questions about whether it can ever
             | work and won't in fact be vulnerable to attack.
             | 
             | At this point PoS is quite prevalent among modern
             | blockchains (Cosmos, Solana, NEAR, Algorand, Polygon,
             | Cardano, ...). As far as I know, there have been no
             | successful attacks based on PoS's theoretical weaknesses,
             | like its reliance on weak subjectivity. Some PoS networks
             | like NXT have been in production for nearly a decade now.
             | Isn't that fairly strong evidence that PoS works fine in
             | practice?
        
               | rfd4sgmk8u wrote:
               | There have been several consensus failures from PoS,
               | including the recent outage of Solana. One just needs to
               | look at the Steem/Hive 'takeover' by Sun to see how
               | political wars can form and threaten the security model
               | in PoS world. Contrast with bcash incident of 2017.
               | 
               | A few years ago, I saw a Hybrid PoS/Work chain (a
               | satoshi-client derivative coin) being attacked in real
               | time, and totally hijacked. Ultimately it was a bug in
               | the PoS logic that enabled it. I am very apprehensive
               | about PoS even providing a fragment of the security.
               | Chain takeovers are a real threat in PoS world. The
               | attacker needs very little physical resources -- just
               | know the right stakeholders. PoW need resources. PoW is
               | trivial to verify and test. PoS advocates like to gloss
               | over all the real world failures.
               | 
               | You may notice that during the China ban, Bitcoin worked
               | pretty much as expected (with some slight block delays
               | until difficulty adjusted). PoW works.
               | 
               | The other metric to observe is how many chain reorg's
               | occur due to PoS. This is practically a non-event in
               | large PoW chains like Bitcoin, today. In Turing complete
               | chains like EVM chains, it might not be possible to
               | reorder transactions with no-loss during reorgs as
               | transactions are state dependent. PoS potentially
               | destroys finality.
        
               | dlubarov wrote:
               | > the recent outage of Solana
               | 
               | Do you mean [1]? It sounds like the consensus issues
               | there were related to Solana's unusual PoH model.
               | Validators being "unable to process all the proposed
               | forks" would never happen in a BFT PoS model, like
               | Tendermint etc, since forks cannot occur (under a 2/3
               | honesty assumption).
               | 
               | > Ultimately it was a bug in the PoS logic that enabled
               | it.
               | 
               | To state the obvious, PoW chains can have bugs too. It
               | sounds like you were just looking at a niche project that
               | didn't have high standards for engineering and audits.
               | 
               | > PoS advocates like to gloss over all the real world
               | failures.
               | 
               | PoS and PoW chains have both had plenty of incidents, but
               | you haven't really pointed out any PoS incidents that
               | were caused by weaknesses inherent in the PoS security
               | model.
               | 
               | > Bitcoin worked pretty much as expected
               | 
               | Bitcoin has been around the longest, has a relatively
               | small feature set, and rarely changes. One would expect
               | such a chain to be very stable regardless of PoW/PoS.
               | 
               | > The other metric to observe is how many chain reorg's
               | occur due to PoS.
               | 
               | Reorgs can't occur in BFT PoS chains (under a 2/3 honesty
               | assumption).
               | 
               | [1] https://solana.com/news/9-14-network-outage-initial-
               | overview
        
               | rfd4sgmk8u wrote:
               | Agreed about bugs. Bugs can exist everywhere. It is far
               | easier to validate and test PoW code. Its a <
               | comparision.
               | 
               | Contrasting: https://etherscan.io/blocks_forked and
               | https://polygonscan.com/blocks_forked it would appear
               | that indeed PoS BFT chains like Polygon can and do reorg,
               | very regularly.
        
         | 908B64B197 wrote:
         | > What this actually means is that crypto-mining is focused on
         | areas that have hydroelectric power because it's the cheapest,
         | generally.
         | 
         | Hydro is also interesting because it _has_ to output power.
         | When the reservoir gets above a certain level water has to be
         | let out because dams can 't handle overflow. That's achieved by
         | diverting water to a stream without a turbine.
        
         | dogman144 wrote:
         | > this has been an issue in towns on the Hudson Valley in New
         | York, for example.
         | 
         | Believe you have your NY State river valleys swapped. There's
         | not much mining downstate. Most of the the mining in NYS is up
         | in the North Country and pulling excess power of the St.
         | Lawrence River and a dam up there that supplies a fair bit of
         | power to NYS/Canada/surrounding region. There was a study from
         | Wharton recently on the impacts of power prices as a result.
        
         | risyachka wrote:
         | "extremely limited utility for society" is harldy an argument.
         | 
         | It's limited today. In 10 years it can change many things for
         | people (very possibly in areas that are not even close to
         | crypto).
         | 
         | Going to space had hardly any utility, going to Mars even less.
         | But on the way there will a TON of progress and discoveries
         | made that will be used in medicine, manufacturing etc.
        
           | oblio wrote:
           | Yeah, but meanwhile let's not burn the planet down.
           | 
           | Let's ban all resource intensive crypto-currencies.
           | 
           | If they're so good for society, surely they can be lean, too?
        
         | Fiahil wrote:
         | I'm a bit of a crypto enthusiast, but I generally agree that
         | crypto-mining suck too much power out of the grid for it's
         | current utility level.
         | 
         | However, your comment is a bit short-sighted and doesn't
         | account for the switch of Proof-of-Work to Proof-of-Stake
         | algorithms that is currently happening. PoS use A LOT less
         | power and doesn't need extensive mining farms. See also:
         | https://blog.ethereum.org/2021/05/18/country-power-no-more/
         | 
         | The only remaining question is: are we going to transition away
         | from bitcoin, the largest PoW bastion, or not ? Probably, yes.
        
           | rfd4sgmk8u wrote:
           | No, never. Bitcoin will be PoW forever. PoS is and will never
           | have the same security properties of PoW. Its bad for
           | decentralization, its bad for censorship resistance, and its
           | bad for the free world.
        
             | L33tCrown wrote:
             | Actually PoW accentuates the concentration of miners, while
             | in Ethereum 2 you are limited to a few mining machine, thus
             | distributing more equally the mining power.
        
               | rfd4sgmk8u wrote:
               | Actually, no, the opposite. One of the fundamental
               | problems with PoS is that it has no externally observable
               | metric that a block is correct. PoW is trivially
               | externally verifiable. This is good for decentralization.
               | There can be no lies from the miners.
        
               | ilammy wrote:
               | Bitcoin miners _per se_ do not control Bitcoin network.
               | They are the backbone, but the nodes ultimately decide
               | whether they include a mined block or not. Validating
               | blocks is way cheaper than mining them. Expensive mining
               | process only ensures that you can 't easily flood the
               | network with bogus blocks.
        
             | Fiahil wrote:
             | I didn't meant for Bitcoin to transition to PoS, but rather
             | everyone using Ethereum instead of Bitcoin because it's now
             | PoS.
        
               | rfd4sgmk8u wrote:
               | Yeaaaaah i will believe it when i see it. I don't think
               | betting the economy on changing airplane engines mid-
               | flight is a good play. My prediction is that if ETH
               | switches to a PoS consensus model, the value will TANK.
               | If this happens at all. I know the PoS timeline, I think
               | it is fiction.
        
               | whatisthiseven wrote:
               | Ironically, ETH switching to PoS is the reason I am
               | holding the currency.
               | 
               | In the future I expect all PoW cryptocurrencies to be
               | banned, or severely hobbled, because of their electricity
               | usage and e-waste. I have a long bet on ETH specifically
               | because of its eventual move to PoS. Bitcoin doesn't even
               | have a plan, and when the legal landscape changes it will
               | be in the worst position to pivot.
               | 
               | We'll just have to see what the future holds. But I got
               | my money down.
        
               | rfd4sgmk8u wrote:
               | Nah, I don't think it can be banned. At least not in the
               | non-authoritarian parts of the world.
               | 
               | Even if it is, they would need to break my fingers to
               | prevent me running a Bitcoin node. And I will get the
               | blocks via Satellite. If there was a credible threat, we
               | would go somewhere it is not.
               | 
               | If your economic thesis is based on hoping the government
               | bans something, why are you even playing with state-
               | resistant decentralized monetary systems?
        
               | oblio wrote:
               | > Nah, I don't think it can be banned. At least not in
               | the non-authoritarian parts of the world.
               | 
               | Why can't it be banned? It's wasteful and closer to a
               | Ponzi scheme than an actual currency.
               | 
               | > Even if it is, they would need to break my fingers to
               | prevent me running a Bitcoin node. And I will get the
               | blocks via Satellite. If there was a credible threat, we
               | would go somewhere it is not.
               | 
               | That could be hard if many of the worthwhile places ban
               | it :-)
               | 
               | > If your economic thesis is based on hoping the
               | government bans something, why are you even playing with
               | state-resistant decentralized monetary systems?
               | 
               | Most people in crypto are in it for the money, not for
               | idealism.
        
               | rfd4sgmk8u wrote:
               | As someone who has been in this space a long time, I
               | assure you I am idealistic in my positions. Hopelessly
               | idealistic.
               | 
               | What does Ban even mean? That it is illegal to run in
               | places like the US? Very unlikely, and as more
               | institutional money flows into it, it grows more
               | unlikely. Some places are starting to put 401k/pension
               | funds into it. Some places are raising it as legal
               | tender. There is also that 1st amendment thing.
               | 
               | So will it banned like drinking straws? (which are still
               | available) Or banned like drugs? (which are still
               | available).
               | 
               | I feel you WANT it to be banned because it tickles your
               | authoritarian tendencies. I am glad we live in a world,
               | at least today, where your wishes are ignored.
        
               | crummy wrote:
               | How is the first amendment relevant here?
        
               | oblio wrote:
               | This discussion is worth revisiting in 10 years :-)
        
               | trevyn wrote:
               | I wonder what the economics are like for a Starship-
               | delivered nuclear-powered Bitcoin mine in space...
        
               | TacticalCoder wrote:
               | Why would Ethereum's value tank when it shall be
               | switching entirely to PoS (the PoS chain is already up
               | and running perfectly fine btw)?
               | 
               | Ethereum shall also lower the block reward, lower the
               | fees, and make more people hold on to their ETH to get
               | the staking reward.
               | 
               | Why would the price tank? Also ETH is already at 1/2th
               | the "market cap" of Bitcoin, so a takeover is definitely
               | not unthinkable.
        
               | swalsh wrote:
               | I'm currently staking ETH 2.0 Many people are.
        
             | sushisource wrote:
             | Bad for the free world? That's a bit of a fucking stretch.
             | I think you can pretty comfortably argue the power and
             | e-waste situation created by PoW is much worse for the
             | "free world" than a slightly stronger consensus mechanism
             | for a speculative value store.
        
               | trevyn wrote:
               | I haven't dug into this, but I do intuitively sense some
               | risks with PoS. Can anyone recommend a good, thoughtful
               | writeup of the specific risks?
        
           | mr_spothawk wrote:
           | isn't the current virtual money system already a PoS system?
           | 
           | (i mean proof-of-stake, not the alternative inflammatory PoS)
        
         | adventured wrote:
         | > And at best crypto provides extremely limited utility for
         | society.
         | 
         | Whenever you sell it, if you generated a profit on that sale,
         | you are going to pay taxes on it (at least in the US).
         | 
         | That's a real value for society. Can it ever be enough to
         | offset the added squeeze on the electricity grid (which we
         | really don't need right now, with EVs coming on and our grid in
         | serious need of upgrade/expansion)? Someone will have to do the
         | math on that.
        
           | lottin wrote:
           | No. Your profit from trading bitcoins is someone else's loss.
           | The amount wealth in society remains unchanged, only it's
           | allocated differently. Total value added = zero. A tax on
           | profits doesn't add any value either, it's just an additional
           | re-allocation of the same wealth.
        
             | trevyn wrote:
             | That's not strictly true; some forms of capital allocation
             | increase future productivity (and therefore future wealth)
             | at a greater rate than others.
        
           | TomSwirly wrote:
           | Crypto transactions cannot create or destroy fiat currency.
           | 
           | If you buy and hold cryptocurrency, at no time will it
           | produce "dividends" in fiat currency, or physical objects
           | like cell phones.
           | 
           | So if you make money by selling some cryptocoin, that is
           | _entirely_ because someone else purchased it at a greater
           | price than you did.
           | 
           | Their expectation is that someone else will later buy it at a
           | greater price from them, and that person will be buying it on
           | the hope that someone will pay yet more again.
           | 
           | No actual cashflows appear anywhere in this process.
           | 
           | What happens when there isn't a new Greater Fool?
        
             | ilammy wrote:
             | > _at no time will it produce "dividends" in fiat currency,
             | or physical objects like cell phones_
             | 
             | Why it has to be physical? One could use cryptocurrencies
             | to pay for virtual things on virtual internet, which are
             | nevertheless thought to be meaningful.
             | 
             | Like, fiat currencies exist as a way of paying taxes to
             | your government _and also_ you can exchange them for goods
             | and services.
        
             | trevyn wrote:
             | The value of fiat could go to zero.
        
         | matheusmoreira wrote:
         | > And at best crypto provides extremely limited utility for
         | society.
         | 
         | This is true for _bitcoin_. It failed at everything it set out
         | to be and yet it is the most mined coin. Truly a waste of
         | energy.
         | 
         | There are better projects out there which actually provide
         | value and utility. Monero is an example. It's pretty sad that
         | bitcoin is still number one despite the existence of these
         | projects.
        
           | rfd4sgmk8u wrote:
           | Monero is a proof of work cryptocurrency. I like PoW, it is
           | the most secure distributed consensus algorithm we have
           | discovered. If Monero was as popular as Bitcoin, it would use
           | something similar to the energy. None of it is a 'waste of
           | energy'.
        
             | matheusmoreira wrote:
             | I agree with you. It's a waste of energy because that
             | energy is being spent mining BTC, a useless coin that isn't
             | anonymous, private, decentralized, fungible, it isn't even
             | an actual currency. It should be spent mining Monero
             | instead which actually does have all of those properties.
        
               | rfd4sgmk8u wrote:
               | I like and hold Monero, it is a good coin.
               | 
               | But it is not Bitcoin. It likely will never have the
               | attention of large capital holders (eg: Financial
               | Institutions). Ignoring the regulatory risks (which
               | absolutely exist), IMHO the real critical risk is that
               | bugs or bad math will break the economic model.
               | 
               | With transparent blockchains like BTC, you can trace
               | every satoshi. With opaque chains like XMR, you risk that
               | a bug in the code will permit invisible inflation. This
               | has happened before!
               | (https://jonasnick.github.io/blog/2017/05/23/exploiting-
               | low-o...).
               | 
               | The same problem applies to all ZK based solutions --
               | Zcash, Grin, Mina... You are one mistake away from
               | invisible inflation that will sap all the value from the
               | coin.
        
               | matheusmoreira wrote:
               | > Ignoring the regulatory risks (which absolutely exist)
               | 
               | I'm of the opinion that Monero is a failure if it can't
               | withstand regulation.
               | 
               | > IMHO the real critical risk is that bugs or bad math
               | will break the economic model.
               | 
               | I agree. I don't think I have sufficient cryptography
               | knowledge to evaluate this risk but I acknowledge its
               | existence. For the moment I trust that the Monero
               | developers will do everything possible to prevent this
               | from happening.
               | 
               | Still, BTC is way too valuable for something that failed
               | to become everything it was envisioned to be. It seems to
               | be driven by brand name alone. XMR is way too undervalued
               | and undermined for a coin that at least tried to address
               | the majority of problems in BTC.
        
               | BoiledCabbage wrote:
               | Oh dear.
               | 
               | I don't remember who said that crypto is Lululemon,
               | Amway, multi-level marketing for tech guys, but it's
               | amazing the similarities.
               | 
               | In a discussion on Proof of work does not scale, cannot
               | scale, will choke out production in the economy going
               | forward because of its design, a person responds with say
               | "you're right, that product is bad. Don't buy that one
               | instead buy this one".
               | 
               | Does this other one solve any of those problems? Nope,
               | but the person hawking it has purchased a lot of product
               | and gets a cut if you buy into it.
               | 
               | It's amazing how disingenuous crypto conflict of interest
               | has made any and all discussion about crypto.
        
               | slaman wrote:
               | Lululemon is a regular clothing retailer, with no MLM,
               | membership or even loyalty program at this time.
               | 
               | You can't earn any money by re-selling their clothes,
               | you'd probably get sued if you tried.
               | 
               | You probably mean LuLaRoe, a brand that is capitalizing
               | on the name similarity.
               | 
               | https://en.wikipedia.org/wiki/LuLaRoe
               | https://en.wikipedia.org/wiki/Lululemon_Athletica
        
               | BoiledCabbage wrote:
               | Yes, I meant LuLaRoe thank you. Too late to correct it.
        
               | matheusmoreira wrote:
               | So you think I'm a multi-level marketer? Is it even
               | possible to prove otherwise? I just happen to believe in
               | that project and like to talk about it. Am I supposed to
               | not talk about this stuff?
               | 
               | I don't particularly care that energy is being spent on
               | cryptocurrency. What I hate is the fact that energy is
               | being spent on bitcoin in particular. The energy is not
               | supposed to be wasted, it's supposed to _buy us
               | something_. Namely, a decentralized, private, anonymous,
               | uncensorable, unsanctionable digital cash network.
               | Something that could withstand even the might of the US
               | and China if needed.
               | 
               | Bitcoin is not it. At this moment I think Monero is
               | closest to being it. I'm totally open to new ideas.
        
               | coldpie wrote:
               | > I'm totally open to new ideas.
               | 
               | Find a better hobby =/ This casino is not worth boiling
               | the world.
        
               | matheusmoreira wrote:
               | It's not even 1% of global energy consumption. It's the
               | oil companies who are boiling the world but nobody dares
               | to touch them. The cars, the factories, the developed
               | nations and their comfortable lifestyles supported by
               | such a highly polluting economy. China is the most
               | polluting country in the world, but will the US, Europe
               | stop trading with it? No. How will the west survive
               | without its cheap consumer products? The very computers
               | we're posting this on? Yet I'm expected to care about BTC
               | energy consumption? No, I refuse to care. It's a drop in
               | the ocean compared to the real problems that no
               | government will lift a finger to solve.
               | 
               | That said, I'm totally open to new hobbies.
        
               | sudosysgen wrote:
               | 1% energy usage is far from a drop in the ocean. It's
               | huge!
        
               | matheusmoreira wrote:
               | In absolute terms, sure. In relative terms, it's nothing.
               | Removing BTC energy consumption from the equation barely
               | affects the result. In order to actually do something
               | about climate change, humanity needs to tackle that big
               | 80-90% chunk of energy consumption coming from much more
               | problematic industries. Cryptocurrency is a nuisance by
               | comparison, a minor problem.
        
               | oblio wrote:
               | > It's not even 1% of global energy consumption.
               | 
               | For now. As its usage goes up, its energy consumption
               | will go up, <<by design>>. It's crazy that we're even
               | talking about a <<currency>> (!!!) using this much power.
               | 
               | > It's the oil companies who are boiling the world but
               | nobody dares to touch them.
               | 
               | We are working on all of that, I guess you haven't been
               | following the news. It's not easy, but we are.
               | 
               | > The cars, the factories, the developed nations and
               | their comfortable lifestyles supported by such a highly
               | polluting economy.
               | 
               | Same. Electric cars, environmental regulations for
               | factories, increased energy efficiency for houses, etc.
               | 
               | > China is the most polluting country in the world, but
               | will the US, Europe stop trading with it? No.
               | 
               | China's working on it and the US and EU are actually kind
               | of gearing up towards a trade reduction.
               | 
               | > No. How will the west survive without its cheap
               | consumer products? The very computers we're posting this
               | on?
               | 
               | These computers are also used for work, hobbies, making
               | people's lives better.
               | 
               | > No, I refuse to care. It's a drop in the ocean compared
               | to the real problems that no government will lift a
               | finger to solve.
               | 
               | It's not a drop. It's something we created about a decade
               | ago and it uses up a 100th of the energy the entire world
               | is using. That's crazy. And those real problems are being
               | tackled, you just don't know it or refuse to see or think
               | it's simple and easy to solve.
        
               | matheusmoreira wrote:
               | > And those real problems are being tackled, you just
               | don't know it or refuse to see or think it's simple and
               | easy to solve.
               | 
               | Okay. Let's wait for them to solve the big problems first
               | before we focus on inconsequential stuff like
               | cryptocurrency. Once that's taken care of, we'll see if
               | proof of work remains an issue.
        
               | trevyn wrote:
               | The evidence seems pretty strong that the world's gonna
               | get boiled anyway, fwiw.
               | 
               | It's fine to hope that things might be different, but
               | making decisions and plans based on that hope
               | seems...imprudent.
        
               | TomSwirly wrote:
               | > Namely, a decentralized, private, anonymous,
               | uncensorable, unsanctionable digital cash network.
               | 
               | In other words, the perfect ability to money launder,
               | evade taxes and purchase contraband. Great.
               | 
               | But what would a law-abiding person do with this?
        
               | BoiledCabbage wrote:
               | > So you think I'm a multi-level marketer? Is it even
               | possible to prove otherwise? I just happen to believe in
               | that project and like to talk about it.
               | 
               | And do you own any Monero?
        
           | brezelgoring wrote:
           | >yet it is the most mined coin
           | 
           | Not a surprise when it is the most valuable one, a day of
           | drops and the corresponding surges that come afterwards can
           | set you up for a long time if you're not from the EU/US, it
           | also appreciates faster than a house, which makes it a great
           | asset to hold.
           | 
           | Not a surprise it is the most sought after, looking at it
           | from the supply/demand aspect.
        
       | obiwan14 wrote:
       | Is Texas next? Given that several mining companies have set up or
       | about to set up shop on Rockdale and Pyote. And this is a state
       | that endured a major grid crisis early this year.
        
         | hanniabu wrote:
         | That'd be tough, they'd need to figure out the mental
         | gymnastics with their muh freedom narratives, especially since
         | this is something that'd be good for the environment which it
         | seems they're adamantly against.
        
       | webinvest wrote:
       | Crypto helps accelerate the growth, demand, and build-out of
       | renewable energy.
        
         | FriedrichN wrote:
         | Which will be totally useless if it's completely consumed by
         | cryptocurrencies, thus only adding to further destruction of
         | the climate.
        
         | marginalia_nu wrote:
         | That doesn't really help if crypto is also consuming the
         | renewable energy it "helps" build-out.
         | 
         | The problem isn't that the relative proportion of renewable
         | energy is too low, but that the consumption of non-renewable
         | energy is too high. It doesn't matter if renewables make up 10%
         | or 90% if that number doesn't mean a large reduction in the
         | consumption of fossile fuels.
        
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