Oddbean new post about login | logout Texas' government just spent $31.7M in the middle of a heat wave and energy shortage. No, not to provide fresh shelter to the homeless. Neither to install booths with free fresh water. Neither to increase the number of public spaces (outside of shopping malls) where people can gather, instead of burning energy to keep their homes cool 24/7. Neither to boost its investments in renewables and pivot away from the oil that it keeps digging. No, the government just gave that money away to Bitcoin miners to convince them to turn off their energy-hungry machines, so everybody else can also use energy to keep themselves cool. Let that sink in. Even a life-threatening heatwave can't get miners to behave cooperatively and turn off their machines, whose only purpose is as pointless as randomly guessing a number whose SHA256 hash satisfies a certain arbitrary numeric constraint - and they skim some profits out of these pointless puzzles just because someone decided that putting up a system with such perverse financial incentives was a good idea. In order to get them to behave as someone who's not a complete selfish sociopath and evolutionary failure, the government had to compensate them for the losses that they would make by turning off their computers. I guess that today's capitalism is that system where it's actually ok for the government to spend public money - as long as that money goes to those who need it the least. https://www.cbsnews.com/news/bitcoin-mining-cryptocurrency-riot-texas-power-grid/
@7d199f28 When is ERCOT going install some additional HVDC (AC grid <> HVDC <> other AC grid) converter stations so they can sell renewable energy to the eastern and western interconnect and also get support when they’re in a bind? Can’t they get an RIO installing those just on excess renewables - solar and wind that’s already available in the state as well as potential for future developments?
@7d199f28 Not entirely accurate, but that's not the point. Why didn't Texas use that money for improving the grid, or giving consumers credit for solar, or even upgrading ancient heating cooling systems that guzzle electric? Bitcoin mining is an easy target. But as the residential and business population grows in Texas, electric demand does as well. What is Texas doing about that? Maybe Abbot shouldn't have wasted money on political theater.
@7d199f28 Important to note that this is the exact opposite of what an actual free-enterprise capitalist would do, taking funds from the public to give to a special class that does not merit them. A libertarian would see that as pure theft and a conservative as gross inefficiency. So you have more friends than you think!
@7d199f28 Just an aside, and I'm as angry at the grid as anyone else, but this particular issue isn't as bad as everyone thinks. I mean, yes, it's bad, but note that the bitcoin miner, along with thousands of other companies, participate annually in a program where they are insentivized to shed load during emergencies and even peak time of use. What would be BETTER, I think we're all saying, is incentivize customers to do so as well and reduce the incentive and instead spend that $ on upgrades
@7d199f28 I still don't *understand* this news story... why did they even have to basically bribe this company? Isn't that what blackouts are for? Just cut their power. Not your problem. That's literally part of the point of things like rolling blackouts.
@7d199f28 imagine blaming capitalism for the government wasting tax money lmao
@7d199f28 somehow it sounds like information is missing from this story. did they just extend the same energy credits to the miners that everyone else gets?
@7d199f28 Lies and the lying liars.... “Bitcoin mining is a load that will purchase energy 24/7. However, it is unique in that it has the flexibility to turn off in high-demand hours,” Riot Blockchain CEO Jason Les said. “And by participating in the grid with different services for large loads in the grid, we help stabilize that grid as well.” https://www.texastribune.org/2021/10/28/texas-republicans-blockchain-bitcoin/
@7d199f28 I hope everyone who complains about this never uses a desktop or gaming laptop. And posts from a cell phone, tablet, or singleboard computer. And doesn't use the older style electric stoves but, induction cooktops and microwaves instead. Not during peak hours. And keeps eir own AC to 72°F or warmer. And, if doesn't use solar or wind directly, opts to use nuclear or buys credits for solar or wind farm generated power. Don't believe all the FUD against cryptocurrency. 😉