Former President Donald Trump met with several Bitcoin miners at his Mar-a-Lago estate on Tuesday night. During the meeting, Trump expressed his love and understanding of cryptocurrency, stating that Bitcoin miners help stabilize the energy supply from the grid.[1][2][3] He also hinted that he would advocate for miners if elected to the White House again.[2][3] The Trump campaign did not respond to requests for comment on the meeting.[2][3]
Donald Trump wants all remaining Bitcoin to be mined in the United States. He believes Bitcoin mining could serve as a defense against central bank digital currencies (CBDCs) and help make the US energy dominant.[3][4][5]
On June 11th, Trump met with executives from major US Bitcoin mining companies like CleanSpark, Riot Platforms, and Marathon Digital at his Mar-a-Lago residence.[4][5] He expressed support for the Bitcoin mining industry, stating āWe want all the remaining Bitcoin to be MADE IN THE USA!!!ā[3][5]
Trump sees Bitcoin mining as beneficial for stabilizing the gridās energy supply and creating jobs.[4][6] His stance contrasts with President Bidenās administration, which has been hostile towards Bitcoin and more supportive of CBDCs.[3][4] As a presidential candidate accepting crypto donations, Trump aims to champion the crypto industry if elected.[4][6]
The only ways that statement makes sense would be:
(a) bitcoin mining is treated as an interruptible activity, where the public power supply to those entities can be throttled back when needed to prevent overloading the grid, or
(b) bitcoin miners are required to provide their own power supply (presumably from reliable āgreenā nuclear power plants), with excess power being fed into the public grid.
Bitcoin miners can help manage peak demand on the electric grid in several key ways:
Bitcoin mining operations are highly flexible and can quickly ramp down their electricity usage during times of peak demand or grid stress[1][2][3]. This demand response helps relieve pressure on the grid.
Miners can absorb excess renewable energy generation, especially during off-peak hours when demand is low[3]. This reduces energy waste and helps balance the grid.
By providing a steady demand for excess renewable energy, Bitcoin mining can improve the economics of renewable energy projects, leading to more investment in sustainable generation[3].
During grid emergencies, some Bitcoin miners have voluntarily curtailed all operations to reduce demand[2]. For example, Greenidge Generation in New York curtailed mining during a grid emergency in 2022[2].
Bitcoin miners are location-agnostic and can set up near renewable energy sources to utilize excess generation[3]. Their flexible load helps integrate more renewable energy onto the grid.
Miners can secure long-term contracts to provide a consistent base load for new renewable energy projects[4]. This helps justify the capital investments needed to build out clean energy capacity.
So in summary, Bitcoin minersā ability to quickly adjust their electricity usage, absorb excess renewable generation, and provide stable demand for new clean energy projects makes them a valuable tool for managing peak loads and integrating renewables onto the grid[1][2][3][4].
Bitcoin miners in Texas are profiting by using less electricity during periods of high demand on the stateās power grid[1][2][3][4]. In August 2022, the largest bitcoin mining company in Texas, Riot Platforms, received $31.7 million in energy credits from the stateās grid operator ERCOT for reducing its electricity consumption[2].
This arrangement, known as demand response, allows miners to act as a failsafe during periods of low and high demand[1]. When electricity demand is high, miners can switch off or sell back pre-purchased energy in exchange for a fee[1][4]. However, critics argue this is effectively double-subsidizing miners, as residentsā taxes provide funds for buying energy from miners during peak demand[1].
As of November 2022, crypto miners in Texas were using around 2 gigawatts (GW) of energy, about 2.5% of the stateās peak load[1]. But a long queue of companies representing an additional 32 GW of consumption are either awaiting approval for new mining installations or beginning construction[1].
The influx of mining activity has raised concerns over its impact on the Texas grid, with some estimating it has driven up energy prices for consumers by $1.8 billion[3]. Residents have also reported adverse effects like noise pollution from mining facilities[1]. However, the industry argues it helps improve the profitability of renewable energy sources and incentivizes new development by using excess energy when demand is low[1][4].
Just an observation ā the worst strategy Bitcoin enthusiasts could adopt would be to nail their flag to the heavily-subsidized uneconomic unreliable intermittent ārenewableā energy scam.
The unsustainable subsidies for ārenewableā energy will inevitably come to an end as the economic woes of a de-industrialized West accelerate. Then where will that leave Bitcoin miners?
Bitcoin miners seek to minimize the cost of electricity regardless of source. Some put out statements about renewable for public relations. But they donāt care about clean energy vs coal vs natural gas vs hydroelectric. Mining is difficult and competitive and expensive.
Former President Donald Trump says āBitcoin mining may be our last line of defense against a CBDC.ā
company listed in the paragraph above