What’s the most interesting second order effect of hyperbitcoinization?
I’ll start, the potential implications of Bitcoin mining on global energy grids is 🤯🤯
Discussion
a #zapathon holiday, like pizza day
I predict bitcoin mining as a business will disappear, and we’re living through a special era of adoption.
It simply makes too much sense to integrate mining systems directly to power generation. Mining subsidizes energy producers, and the more people that use electricity, the more spread out over power generation systems globally mining becomes.
Mining pools -> Grid systems
Interesting take. Agree that energy producers and miners will become the same industry.
Mining is a tool for energy producers.
Straight magic.
General lowering of time preference and rise of personal responsibility throughout our culture.
Turning super-power nation states from perpetually waring control apparatuses into service providers that have to deliver value to citizens instead of extracting it.
But how?
If global markets determine bitcoin is the money then money printers can’t go brrrr.
This makes endless wars, sanctions, global armament accumulation games and perpetual military occupation (eg 750+ US bases globally) unaffordable short-term and impossible long-term.
In the same vein, governments that levy ridiculous levels of taxation will see net-outflows of citizens. Without money printers to fund internal armies for citizenry-control (eg CCP) authoritarians will lose their grips.
The only option left is to provide socially and economically favorable environments for citizens. This would kick off a positive feedback loop game theory between nation states.
A man can dream…
Yours is tough to beat. But for conversation purposes:
The de-monetization of financial assets, particularly real estate.
Devils Advocate; There is no global energy grid!
I said global energy grid”s”.
Plural.
BTC mining companies are HELPING electric grids.
You read that right.
Many have partnered with grid companies.
You see, it is hard for the utilities to adjust- throttle production up and down. It takes days and there’s a lot of waste. So many have agreements with large mining companies. It is much easier for server farms to throttle usage. So what they are doing is now the utility companies get to run at a more constant rate. When demand goes up, mining rigs are turned down. When demand goes down, mining rigs are turned up. The mining companies get a discounted rate for being so cooperative and the electric companies are more efficient by running a constant rate. Everybody wins.
Art and Culture
The development of new cities/communities around energy sources which were not exploited before due to their location. They won't even have to be connected to the grid đź’Ş.
Switch in time preference
What does this mean for humanity?
I will preface this by saying we not need to wait for hyperbitcoinization to adopt a low time preference, we can do this now on our own accord as it has been done on the fringes voluntarily as far as I can see.
I think it means humanity has a choice to go back to fundamentals, logic and reality on an economic and personal level.
With hyperbitcoinization I imagine debt, loans and excess liquidity will be reduced. If you want a loan to start an endeavour you will have to convince someone to loan you their Bitcoin which is incredibly scarce commodity with fixed supply. Ideas will be vetted more throughly, zombie entities not only will not survive but will not get an opportunity to begin as we can’t print to find non economically viable businesses. In short the best ideas/business will be funded and survive. I think value for value here.
It will encourage long term thinking because we will be on a hard money standard and won’t be looking to keep up with debasement of money so we can be more selective instead of short term wins and gratification. I think over time the collective mindset will shift to long term, decade thinkers, i imagine they will be saying, I want to build for the future, I want to be healthy, I want to eat high quality food, I want to build great relationships with family, friends, etc. you can see this in the btc community already. It’s here it’s just not widely distributed.
Sure there will be drawback of hyperbitcoinization as well, always trade offs.
- one man’s perspective.
✌️
