Energy is power. That doesn’t sound like a very controversial statement, but if Solar Bankers gains momentum through its revolutionary use of blockchain, solar energy could disrupt the current infrastructure. Should power companies be concerned? That depends on just how disruptive Solar Bankers’ model becomes. And it could become very, very disruptive.
As it stands, utilities benefit a great deal from blockchain and cryptocurrencies like Bitcoin and Ether because mining consumes a lot of energy. The nature of the cryptocurrency means miners are continually adding new blocks to the chain. This process creates an ever-increasing demand for energy worldwide.
Bitcoin’s Energy Problem
Bitcoin alone consumes more energy than Bangladesh and is just below Israel on the energy consumption ladder. Because it’s a distributed system, Bitcoin’s energy consumption isn’t confined to a single data centre in a single country. Every miner is responsible for skyrocketing energy usage, and it’s incentivised worldwide. The more energy you use, the more Bitcoin you earn. This reinforces utility infrastructures worldwide and taxes grids so that energy companies have to generate more power. More often than not, the energy isn’t clean, it comes from fossil fuels and natural gas. The Guardian’s Alex Hern points out that Bitcoin uses as …