Dear Readers,
If you’ve been reading The HiFi Bitcoin Letters for a long time, you may notice that the title of this article is nearly identical to the title of an article I wrote late last year on the topic of Bitcoin mining and the energy grid in Texas. That was intentional on my part, as the prediction I made back then was recently proven right.
Back then, I, along with other Bitcoin educators, spoke at length about the positive change that Bitcoin mining was driving in energy consumption. Bitcoin uses a vast amount of energy and miners are incentivized to find the cheapest energy available in order to ensure that they are as profitable as possible. Since miners are such consistent energy customers, my expectation was that energy providers in Texas and elsewhere would be incentivized to build infrastructure and improve technology in order to serve Bitcoin miners and that energy grids would be stronger as a result.
As expected, Bitcoin mining has been a huge benefit for the Texas energy grid and all its customers. Bitcoin miners are providing regular revenue to energy providers working to build out wind and solar farms in the area, not to mention more established energy sources like natural gas and coal. And as we saw earlier this month, miners are also supporting the grid by turning off their machines in times of high energy demand.
