I haven’t gotten my head around the apparent collision course that energy hungry bitcoin has with the need to clean up our limited capacity energy sector. Is it still a requirement to mine more bitcoin? And how does that compare with printing more money?
Great question cuz! I'll start with the existing system.... how is the existing monetary system secured and what is the energy required to secure it? For starters, the existing Petro-dollar system is secured by the US Military, which uses 4.6B gallons of oil per year.... I have a friend who has 3 kids and wanted his wife to stay home with them, but due to inflation and money printing and despite him having a good 6 figure salary, she had to go back to work, buy second car and do 1.5 hours of daily commuting - what the energy impact of that? And we all know tons more similar stories. What's the energy and environmental impact of a monetary system that is required to have 2%+ inflation? Bitcoin mining serves the purpose of securing the Trillion dollar monetary network. It has done so successfully as it has never been hacked. So yes, the network will continue to need to be secured in the future. The miner is paid a block reward (Bitcoin) for the effort of that security. Much of the energy Bitcoin uses is in fact from stranded or otherwise wasted sources e.g. flare gas from oil producers or excess hydro or nuclear. Lyn Alden is a tremendous thinker and put together a comprehensive piece on this https://www.lynalden.com/bitcoin-energy/ if you want to deep dive further. 💕👊
Not to get too personal, but with real estate prices falling dramatically against Bitcoin for the last number of years: what went into the decision into increase RE holdings vs. increased stacking?
That’s a great question! I’m only buying real estate or taking on projects that are personally interesting to me. As well I’m looking at doing “Bitcoin backed real estate projects”. And Free cash flow will parlay back into BTC.
If we are only looking at straight math and returns - I would tell people to simply buy and stack Bitcoin.
As well, I also acknowledge that there are no certainties and the .01% chance we are wrong on Bitcoin, having a real estate hedge will be helpful.
I haven’t gotten my head around the apparent collision course that energy hungry bitcoin has with the need to clean up our limited capacity energy sector. Is it still a requirement to mine more bitcoin? And how does that compare with printing more money?
Great question cuz! I'll start with the existing system.... how is the existing monetary system secured and what is the energy required to secure it? For starters, the existing Petro-dollar system is secured by the US Military, which uses 4.6B gallons of oil per year.... I have a friend who has 3 kids and wanted his wife to stay home with them, but due to inflation and money printing and despite him having a good 6 figure salary, she had to go back to work, buy second car and do 1.5 hours of daily commuting - what the energy impact of that? And we all know tons more similar stories. What's the energy and environmental impact of a monetary system that is required to have 2%+ inflation? Bitcoin mining serves the purpose of securing the Trillion dollar monetary network. It has done so successfully as it has never been hacked. So yes, the network will continue to need to be secured in the future. The miner is paid a block reward (Bitcoin) for the effort of that security. Much of the energy Bitcoin uses is in fact from stranded or otherwise wasted sources e.g. flare gas from oil producers or excess hydro or nuclear. Lyn Alden is a tremendous thinker and put together a comprehensive piece on this https://www.lynalden.com/bitcoin-energy/ if you want to deep dive further. 💕👊
Too bearish! Just kidding.
Not to get too personal, but with real estate prices falling dramatically against Bitcoin for the last number of years: what went into the decision into increase RE holdings vs. increased stacking?
That’s a great question! I’m only buying real estate or taking on projects that are personally interesting to me. As well I’m looking at doing “Bitcoin backed real estate projects”. And Free cash flow will parlay back into BTC.
If we are only looking at straight math and returns - I would tell people to simply buy and stack Bitcoin.
As well, I also acknowledge that there are no certainties and the .01% chance we are wrong on Bitcoin, having a real estate hedge will be helpful.
Amazing!
I'd love to hear more about the BTC-backed projects when you're ready to share.
Thanks for another great read.