Friday, Sept 15, 2023

bitcoin mining and energy, global adoption, institutional interest

“We are stuck with technology when what we really want is just stuff that works.” – Douglas Adams ||

Hello everyone, and HAPPY FRIDAY!!! I, for one, am relieved Friday is finally here because it’s been a pretty intense week. My hosting of the CoinDesk Markets Daily podcast went live on Monday, and I feel blessed to work with such a professional and kind team, they are amazing. Thanks to them, I’m enjoying it so far. Do please subscribe on your favourite platform, and leave nice comments! Also, I started radiation treatment this week which is fascinating (the machines! very sci fi) but also a bit draining. ALMOST done with the tough part!!! So excited, truly…

I was Sheila Warren’s guest on the Money Reimagined podcast this week, she’s always stimulating to talk to. You can find the episode here.

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IN THIS NEWSLETTER

• Bitcoin energy consumption goes macro

• Global adoption is dropping, with some surprises

• Deutsche Bank plans crypto services

WHAT I’M WATCHING

Bitcoin energy consumption goes macro

Bloomberg Intelligence published a note earlier this week laying out how renewables now account for the majority of bitcoin mining energy sources. The full report is only available to Bloomberg terminal subscribers, but its author – crypto analyst Jamie Coutts – published a tweet thread yesterday with the main findings.

One of the shared charts shows how total related emissions have declined since China’s mining ban in 2021 even though hash rate (an estimate of the power invested in bitcoin mining) has more than doubled.

(chart via @Jamie1Coutts)

The note also discusses how, rather than add to contamination, the activity can help with the global transition from coal to wind and solar: this usually requires onerous subsidies which can be at least partially financed by bitcoin mining.  

Furthermore, the report notes the growing interest from nation states in bitcoin mining, to support the development of renewable energy sources, to help stabilize grids, and/or to monetize excess energy. We now have at least four nation states involved in bitcoin mining: in descending order of capacity, they are the United Arab Emirates, Oman, El Salvador and Bhutan.