More Green Energy: Crypto Mining Saves A Hydro Power Plant In Costa Rica

Green energy powers most of Bitcoin mining and the world might as well face it. And the rest of the cryptocurrencies that use Proof-Of-Work might be right behind, because they follow the same incentives. In their quest for cheaper energy sources, they all reach the same conclusion. Humanity is wasting renewable energy all over the world. And wasted energy is the cheapest of them all. 

In today’s story, a hydropower plant that had to pause operations for nine months found cryptocurrency mining and got the dream client they needed. Reuters gives us the prelude to the story:

“The plant was forced to reinvent itself after 30 years because the government stopped buying electricity during the pandemic due to surplus power supply in the Central American country, where the state has a monopoly on energy distribution.”

How much green energy does a country has to have to just stop buying from a clean hydro plant? Well, according to

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“At the end of 2016, Costa Rica reached a total installed hydropower capacity of 2.12 GW. The country dominated the headlines for the second consecutive year, achieving 100 per cent renewable electricity production for a total of 271 days.”

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How Did Crypto Mining Enter The Hydro Plant’s Picture?

Every talking head and their grandmas spread ESG FUD through traditional media. And that spills into social media, where everybody is oh-so-sure that crypto mining is boiling the oceans. Because of that, Eduardo Kooper, the owner of the plant, doubted going the crypto mining route. However, they just had to pivot. They tried other ventures, like making frozen food, and none of them work. There was no other choice.

“I was very skeptical at first, but we saw that this business consumes a lot of energy and we have a surplus.”

The hydroelectric company, with its three plants valued at $13.5 million and a three Megawatt capacity, invested $500,000 to venture into hosting digital mining computers.”

Why would miners move their operation to a hydro plant, though? Wouldn’t it be more comfortable doing it at home? They are heavily incentivized to look for the cheapest energy possible, that’s why. And green energy is renewable. Coal is not. The Reuters report quotes one of the hydropower plant’s satisfied customers:

“Installing it in this place is much more profitable than at home,” at almost half the cost, he calculated, after connecting his computer to the network at the river-powered plant.”

Business is business.

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Green Energy And Crypto Mining, A Match Made In Heaven

We at NewsBTC have been telling you this. Bitcoin mining incentivizes the creation of green energy infrastructure. And it can finance green energy plants already in place. Mining provides both a buyer of first resort and a buyer of last resort. Three months ago, we wrote:

“A whitepaper by the Bitcoin Clean Energy Initiative from earlier this year had explained how bitcoin mining, when using renewable energy, “is especially suited to accelerate the energy transition” towards a cleaner electricity grid.”

And two months ago, in an article on how Bitcoin mining is helping the Navajo Nation in more ways than one, we told you:

“As the world is trying to phase out coal-powered energy, the Navajo innovate to keep up with the times. According to Walter Hasse, Navajo Tribal Utility Authority president, “I had excess electricity that I still had to pay for and deal with. Now, I want to build renewable energy to replace my lost coal resources that are throughout the nation. I need someone to consume that renewable energy resource.”

And with Bitcoin mining, they have that buyer. And now, the other PoW cryptocurrencies can follow Bitcoin’s example. In Costa Rica, the other side of the world, a power station manager reaches the same conclusion as the  Navajo Tribal Utility Authority president. Quoting Reuters again:

“Kooper said international cryptocurrency miners are looking for clean, cheap energy and a stable internet connection, which Costa Rica has plenty of. However, he said Costa Rica’s government should be more aggressive about trying to attract more crypto mining business, although he gave no specifics.”

The Green Energy Future We Deserve

Proof-Of-Work mining is a net positive for the planet. It will lead us to the green energy future that humanity’s dreaming of. It’s the only industry that can do so. And the revolution is already well underway. 

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Tagged : / / / / / / / / / / / / / / / / / / /

Bitcoin Will Truly Drain The Swamp

The often-quoted phrase could actually mean something if the incentives behind politics change.

“Same Same, But Different Same”

While Trump recently popularized the “drain the swamp” phrase, his execution and point-of-view were flawed.

Politicians in the United States have been viewed in a negative lens for at least the last few decades. The problem is that our people have become so desensitized to this way of thought that nothing gets done to rectify the situation. Nihilism has been co-opted all the way up to the legislative level.

How common is it in your discussions with family, friends and peers to refer to our political leaders as liars willing to do or say whatever it takes to get your vote? It’s common amongst my peers; I would imagine it’s no different for you. Why is this?

Consider for a moment the incentives for an individual to run for a political office. What are the perks? Well there’s the glaringly obvious: you get to choose what happens with legislation that you deem is required or justified, with some input from your constituents (if you want to consider their points of view). But there are also second-order perks, like the pensions that are guaranteed after completion of their term. Or my personal favorite: voting on policy (like the most recent infrastructure bill) and specifically how The State (referring to the whole of the U.S. federal government) spends and allocates funds acquired by either tax revenue or money printing.

m1 money stock

M1 Money Stock

Since 2008 we’ve seen a butt-load of money printing. This is documented here by the Fed as the M1 money supply. The Fed itself explains that the definition of what M1 consists of can be arbitrarily changed. This is all to fund activities ranging from bailing out bankers in 2008 (and then not prosecuting a single individual that was actually responsible) to printing nearly 40% of the circulating supply of dollars ever created in order to fund an economic shutdown in a (futile) attempt to prevent the spread of the virus. This is without taking into consideration the plethora of systemic issues within our infrastructure including, but not limited to: civil rights, public health, healthcare, student loans, Social Security, pensions and then there’s the funding of what many are calling America’s “Forever War” state that we’ve been in since our victory over Nazi Germany (and, really, for the entire life of our country).

It is for these reasons that I propose; politics and government have inextricably become married to the Federal Reserve. The Fed has slowly become the lender of only resort to the U.S. and to support the Petrodollar. And what’s worse is that this bank account can manifest dollars out of thin air with zero effort.

Fix The Incentive Mechanism

Drain the swamp. Via Yves Moret on Unsplash

Drain the swamp. Via Yves Moret on Unsplash

Trump had the right idea: “drain the swamp.” You have no idea how much it pains me to say this because, as a human being, I find him deplorable. But that shouldn’t prevent anyone from agreeing with the point-of-view of any individual. Unfortunately he didn’t have the foresight or clarity of mind to see one important fact: if we don’t change the incentive structure, it does not matter who we replace the current leadership with.

Furthermore: if we don’t fix the money, today’s problems will simply manifest again in the future.

This problem needs to be faced today. We need a better currency today. No revolution, whether cultural or confrontational, in today’s environment will accomplish anything if we don’t alleviate the incentive problem.

This problem isn’t just within the Federal Reserve, it’s also due to the lobbying relationships in Washington that I touched on in my previous article. This relationship is allowing for external parties to prod, probe and press politicians to affect legislation that can benefit particular entities or industries (maybe for a modest fee or kickback, we can infer).

Our world continues to show how much we need bitcoin the asset and Bitcoin the network.

Our leaders continue to show how much we need a money that is not under their purview.

Furthermore, our leaders and those closest to the money printer continue to show not only their incompetence with regards to money management, but also their stubbornness to admit that the music is slowing down and the number of chairs to claim are growing sparse.

If the United States of America does not make significant moves to: 1.) accept humility and admit that there is a need to learn about this world-changing asset, 2.) take action on the efforts to learn from reputable and knowledgeable members of the Bitcoin community, and, last but not least, 3.) consider that maybe our world could actually be better with a monetary asset and policy that does not fall prey to human greed or fallibility.

It’s not that bitcoin is a fantastic risk-return investment, it’s that Bitcoin is a fundamental necessity.

This is a guest post by Mike Hobart. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.


Tagged : / / / / / / / team proposes $225 million YFI token mint

After a week of at times rancorous debate, an 11-author team of core contributors and community members have submitted today a proposal to increase the supply of YFI by 6666 tokens — a quantity worth roughly $225 million at today’s prices.

The proposal is the culmination of a wider discussion about developer incentives for decentralized finance’s (DeFi) original yield vault project. While the Twitter discourse revolved around memes and namecalling, on Yearn’s governance forum debate of the pros and cons of a mint were far more sophisticated.

Community members analyzed team token allocations for popular DeFi platforms such as Aave, Synthetix, and 1inch, which tend to reserve around a quarter of token supply for team members and contributors, as well as the treasury holdings for these projects — treasuries which can be valued as high as $4 billion for projects like Uniswap.

Yearn, by contrast, has a $500,000 treasury, and 0% of the YFI token supply was reserved to incentivize the team during the project’s “fair launch” liquidity mining event.

While the fair launch attracted a fervent community, the team now argues that the lack of resources make it near-impossible to effectively compete with projects which can lure top talent away with massive war chests and generous compensation packages.

The token mint proposal seeks to rectify these flaws. The proposal, called “Funding Yearn’s Future,” calls for a one-time mint of 6666 tokens, increasing YFI’s current 30,000 supply by 22%.

Of those 6666 tokens, 4444 — roughly $150 million — will be used for the establishment of a treasury overseen by the Operations Fund and subject to Yearn’s governance, and 2222 would be used to compensate current and early contributors. A “Compensation Working Group” will be convened to determine the exact structure of the 2222 token distribution.

In an interview with Cointelegraph, semi-anonymous core contributor and co-author of the “Funding Yearn’s Future” proposal, Tracheopteryx, said that the Compensation Working Group will present a more complete picture of how the compensation tokens will be disbursed in the future, but the plan will “definitely” include a vesting schedule to protect the YFI market.

“Lots of ideas being discussed, the goal is to protect YFI holders from dumping via vesting while also finding something that works for the pace of DeFi,” he said. “We’d like the work group to be composed of both core contributors and yearn community and will be overseen by the multisig.”

Just two hours old, the proposal has attracted over a hundred yes/no votes, with over three-quarters of voters in favor of the plan. At the end of the week, the proposal will likely proceed as a formal YIP that YFI token holders can vote on.

In an interview last week, Tracheopteryx said that the process of debate has ultimately been an invigorating one.

“There is always a lot of noise and conflict in these moments […] but I am far more moved by the positive creative energy exploding in our network.”