Bitcoin Never Had a Leader: The Intrinsic Need For a Bitcoin Mining Council to Justify the Crowd
From media pressure to an ecological and global educational movement.
Everybody seems happy in this photo, doesn’t it?
The photo seems to be a central bank type of meeting or a Bitcoin type of council?
For everybody to be happy, it seems that another financial weapon was just launched by the Fed to “stabilize” the system. The system, you know? That one that doesn’t fall- the no more crisis system. (just kidding)
Yet, not the Bitcoin network. Bitcoin never had a leader, and it never will. And yes, I’m talking about the recent Elon Musk novel about the meeting between the Tesla’s CEO, Michael Saylor, and a future Bitcoin Mining Council.
Are we preparing ourselves for a centralized trojan horse?
I don’t want to protect the environment. I want to create a world where the environment doesn’t need protection.
Additionally, after Elon Musk tweet his concerns about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, the Musk Effect took place. After Elon’s tweet, we’ve seen a massive deleveraging of the Bitcoin ecosystem, which I think is a very healthy episode.
In his unique fashionable way, Musk did follow his social journey, revealing that he had just been with the North American Bitcoin miners and his most recent friend, Michael Saylor, to prepare a kind of action group, to quickly rest the most skeptical, on environmental issues related to this activity.
I spoke with the North American Bitcoin miners. They pledged to make public the current and planned use of renewable energy and to ask miners around the world to do so. Potentially promising, — Elon Musk tweeted.
The mining ecosystem is new. It evolved very rapidly as the complexity changed over time. One day you could use a personal computer to mine Bitcoin, but today it involves a much competitive ecosystem that transformed itself into a new industry.
Recently, Musk tweeted also an enthusiastic milestone of 200k energy powerwalls installed globally.
What Are Environmental, Social, and Governance (ESG) Criteria?
Many of the CFO’s from the top hedge funds, ETFs, and institutions have been sharing their concerns about ESG.
Elliot Hentov, the Head of Policy and Research at State Street Global Advisors, recently wrote a fascinating article: Biden’s impact on ESG investing will go deeper than climate. Hentov shared:
The Biden administration is undoubtedly eager to promote ESG investing, but there are institutional limits to what can be achieved through direct intervention. Paradoxically, this is one area of financial regulation where the government is likely to pursue a laissez-faire approach. The idea is to remove obstacles to industry trends fostering growing ESG integration, building on pension beneficiaries and retail investors’ underlying demand for ESG-aware assets.
So, Elon Musk will continue his journey against fossil fuels and in favor of protecting the environment. But what better way to do it, if not creating value, catapulting new services, and reinventing sectors of specific industries?
About Environmental, Social, and Governance (ESG), we will hear about this topic again in the coming decades. And the good news is that we are going to hear about these matters for good reasons.
The economy will change for the better. Bitcoin is already part of the change, but the Biden administration could also stay in the history of humankind by leading this new economic and environmental force that will undoubtedly put pressure on emerging economies like China and India.
Believe me, nothing is being done randomly, neither by Biden nor by Musk.
We have forgotten how to be good guests, how to walk lightly on the earth as its other creatures do.
Roughly three-quarters of mining operations use some renewable energy, and 39% are entirely renewable (when hydropower is included), according to Cambridge researchers, who say the topic continues to be “misrepresented.”- Eric Rosenbaum from cnbc.com.
I’m not saying energy sources used in specific industries are not an important issue. Of course, they are. But this is a wrong narrative to damage the Bitcoin network.
If we have to dig deep into energy consumption in all industries, you’d be astonished by the fossil fuel consumption of certain ones. Or we could argue about the 50 thousand terawatt-hours wasted every single year by the inefficiency of the global energy system.
The world generates 160 thousand terawatt-hours of energy per year. Of that, 50 thousand terawatt-hours are wasted every single year. The Bitcoin network uses 120 terawatt-hours a year. Putting it into perspective, that’s seven and a half basis points of all the energy in the world.
Most recently, Yassine Elmandjra, Blockchain and Cryptoassets Analyst at ArkInvest, and Derek Hsue, Investments and Research Team Member at Blockchain Capital, conducted a white paper on energy consumption:
We believe that Bitcoin mining integrated into the distribution grid, and by that, I mean solar roofs power wall in homes, utility merchant power producers starting to include Bitcoin mining in the ecosystem. Why would they do that? They would do it because renewables are intermittent power sources. And Bitcoin mining could take off. If there is excess energy from solar being loaded into powerwalls, it can be offloaded into Bitcoin mining and the all ecosystem, therefore, becomes much more economic. — Cathy Wood, CEO of ArkInvest
The Bitcoin network industry didn’t have to justify anything to the community until the day it did. So, for CFO’s and future legislation, the Bitcoin Mining Council will be demanded.
And having Elon Musk in a Council that concerns energy efficiency, it’s the best acquisition we, the bitcoiners, could dream of.
Musk is a resilient dude. Remember. Tesla was almost bankrupt in 2018. Now, the company is in the S&P500 index. So, don’t underestimate the power of a rocket scientist.
The Bitcoiners have one single issue to solve.
Yet, institutions can’t buy Bitcoin because of ESG concerns. So, if we can’t accept the Bitcoin Mining Council and pretend we can manage the rising power of the Bitcoin network alone, without finding bridges between the absolute decentralized philosophy and a centralized council, I see many constraints for the Bitcoin network proof its functionality.
Final Thoughts
The fascinating thing about the Bitcoin network is that it’s just at the beginning of its journey.
This is a new technology, and it’s disrupting the money industry. Obviously, there is massive resistance from governments and central banks, as they feel threatened by the growing weight in the economy that the Bitcoin network is exerting.
Discussing energy concerns is essential, but it’s not the main issue.
Like many other aspects of the energy industry, bitcoin is not necessarily a “bad guy.” It’s simply a new and vaguely understood industry.
The discussion about energy consumption and bitcoin is, I believe, unfair without discussing the energy intensity of new technologies overall, specifically in data centers.- Jack Marley in theconversation.com
The main issue is that Bitcoin has been used as currency in developed countries and threatens countries’ currencies. Governments legitimately have concerns about losing control of their currencies. That means losing control of security and geopolitical matters. And this is something that we should all care about.
A new technology unknown to most is quickly taken advantage of by malicious individuals. We live in security because we have regulators and institutions that look after the protection of its citizens.
We must not forget this incredible detail to deter the excitement of seeing the bank account grow astronomically by betting on new technology.
We should try to put some emotion aside and try to realize that the institutions that we sometimes feel manipulating us are also those that protect us from outside aggression.
Yet, the Bitcoin network was designed to be decentralized.
A Bitcoin Mining Council, as good as it may seem, contradicts an entire anti-system culture described by its creator, Satoshi Nakamoto, as an alternative to the current system.
Will this Council survive the irreverence of a community tired of manipulation, distortions, opaque policies, and lack of transparency?
I think the Bitcoin Mining Council will be a good thing because it’s going to bring ESG discussion into the mainstream.
The Bitcoin community will see the discussion move forward across the spectrum of highly polluting industries. If the proper comparisons are made, with intellectual honesty, we will be surprised by the number of sectors, including recent technologies, that will show us how much they pollute and damage our planet.
The real winner from all this frenzy is our dear planet.
And that’s always great news!
This article is for informational purposes only, it should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.
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