One of the flags that those who try to attack Bitcoin mining usually wave is the high energy consumption that characterizes this activity. However, the workers of Satoshi Nakamoto’s network have a factor in their favor known as “demand response«.
«demand response«, or response to demand, can be defined as the ability of a user to adapt their energy consumption to the needs of the local electricity park. In other words, someone who can minimize your electricity use or even stop it, if necessary. This in order to release part of the electrical capacity of the network and thus make it available for priority purposes at a certain moment.
Entrepreneur Daniel Batten created a thread tweets where he explains why, in his opinion, the response to energy demand by Bitcoin mining is one of its most valuable qualities in terms of energy consumption.
What makes Bitcoin mining an efficient use of a power grid?
Batten mentions a fact extracted from the book Electrify Everything (Electrify Everything), by Saul Griffith. It states that “for a renewable (energy) revolution to occur, the power grid needs to generate three times as much power.” On the other hand, the International Energy Association (IEA, for its acronym in English) ensures that, in order to achieve the carbon emission targets known as Net Zero by 2030, it is necessary that the response to the demand must be ten times greater than the current one.
There are three examples Batten mentions of niches that can meet the demand response goal: metals, electric cars, and Bitcoin mining. Although the level of flexibility will depend on the honesty and social sense of those who lead these companies and the owners of this type of vehicle, in the particular case of Bitcoin there are examples to cite.
CriptoNoticias has reported the times in which Bitcoin miners in Texas, United States, shut down their farms partially or completely to collaborate with the distribution of energy to the townfirst because of the frost in the winter and now because of the summer heat wave.
Batten mentions that the fact of having a significant number of users that offer an optimal response to the demand favors the administrator of the electrical network. The main advantage is that no need to constantly repower or modernize the power gridwhich reduces infrastructure costs and allows a more efficient operation.