Crypto Twitter Discusses Role of Renewable Energy in Bitcoin Mining

It all started with a tweet from Dennis Porter, a podcast host and self-proclaimed Bitcoin advocate, sparking a heated discussion about renewable energy and the role of Bitcoin miners. Porter asserted that Bitcoin (BTC) has created an impetus to build renewable energy, but environmental scientist Peter Gleick refuted the claim, calling it a “self-serving lie.”

Nic Carter, general partner of Castle Island Ventures and co-founder of Coin Metrics, entered the chat area and said that Gleick knew nothing about energy, which caused the comment area to boil.

Don't tell me you don't know anything about energy,

— nic no credentials carter (@nic__carter) April 4, 2022

Carter went on to explain in the tweet how the energy market works and defended the use of cryptocurrencies. He first refuted Porter’s claim that each kilowatt-hour (KWh) of renewable energy “has been used efficiently, and Bitcoin diverts that use.” In his view, Porter is wrong to say that every unit of energy is being used, citing market reports that show energy prices are negative, or that energy is being curtailed "without economically productive use".

Is it required that "climate scientists" be completely ignorant of how energy markets work?

— nic no credentials carter (@nic__carter) April 4, 2022

He pointed readers to a program led by the Electric Reliability Council of Texas (ERCOT), which operates much of Texas's grid amid a supply glut. In his presentation at the Texas Blockchain Summit last year, he said bitcoin mining could improve the economics of renewable energy projects.

According to Carter, bitcoin mining provides wind and solar installations with the ability to absorb any excess supply that cannot be sold. When generators stop outputting to the grid, or even shut down temporarily, any energy that might be wasted can be used to mine bitcoins. He added that there are already miners hooking up wind farms to the grid, they can buy energy during off-peak periods or when prices are high, and provide households with better access when demand is high. He called on critics to appreciate the miners, who are currently assessing the economic viability of the infrastructure.

The thread has more than 400 comments, with many siding with Carter and Gleick or asking for clarification and additional reading. A user “@SGBarbour” who builds a bitcoin mining farm agrees with Porter that bitcoin miners “do not incentivize renewable energy” but rather “they help free up capital in unreliable power generation”. So while Barbour agrees that mining is good, he doesn’t think it addresses the fact that “significant amounts of money are being wasted installing unreliable energy generation like wind and solar,” he said in the Substack article.

Conversely, another user “@jyn_urso,” a climate change physicist turned bitcoin advocate, credited Carter with “raising another important thread about how energy markets work.” According to her previous tweets, she believes community and individual level solutions such as bitcoin mining can help accelerate the transition to renewable energy and reduce reliance on political structures.

Overall, this debate demonstrates how widely misunderstood Bitcoin and the use of energy are. The split on whether Bitcoin represents a good use of unused energy remains to be proven. A growing number of scientists and climate change advocates are willing to consider how Bitcoin's energy consumption could unlock renewable energy gains.

Carter eventually changed his Twitter name to "nic no credentials carter" after Gleick pointed out their differing education and expertise in energy. Another supporter of Carter chimed in to make fun of Gleick using his position of authority as evidence of his claimed truth.

One country that sets an example for Bitcoin miners is Norway. A recent government report revealed that Norway’s electricity mix is 100% renewable, giving miners there access to completely green and cheap electricity, especially hydropower.