Three reasons why Bitcoin mining may in fact reduce CO2-emissions.
Bitcoin mining consumes energy to protect the purchasing power of the monetary network.
Purchasing power stored in the network today is purchasing power not spent on consumer goods, and these goods would have had to be produced by consuming energy.
At least some of the energy going into mining Bitcoin would thus have gone into the production of electronics, cars, and shoes instead.
How much energy would have been consumed in these alternative uses is anyone’s guess. But it is certainly not negligible.
The power demand from Bitcoin mining is…
On the consumption-investment tradeoff and the Keynesian inversion of reality.
A cornerstone of Keynesian economics is the idea that consumption can “stimulate” the economy.
To clarify the multitude of errors in the assumptions and the logic behind this conclusion would require a full book. My goal in this post is to address just one element (and an important one): To explain why investment and consumption are mutually exclusive and what this means for the Keynesian idea.
To produce is to create something of value (utility) to human beings. You can produce for yourself directly (go fishing and eat the catch)…
Rambling my way down the Bitcoin rabbit hole.