How Bitcoin Mining Strengthens Electricity Grids

The House Hearing on Crypto Energy Use and Impact, held on January 20, 2022, was finally won by Brian Brooks with a great defense of the power use of Bitcoin, especially an enlightening testimony from John Belizier, the founder of Soluna Computing. Both Belizier and Brooks cite real-world examples of how Bitcoin mining today is being used to provide flexible income for utility providers and power generators, but also to provide stability for the networks mentioned. This is done by the mining operators who have contracted with these power providers to shut down mining activities during high demand. I covered these points here in April 2021 with my debut in Bitcoin Magazine.

The relationship between energy efficiency and mining does not stop there. Excavation activities provide a way for power grids to provide a level of strength and resilience so that they have the opportunity to monetize in moments of non-peak demand. This new revenue stream could allow providers to: capitalize on the balance sheet, dedicate funds to upgrade and improve services / equipment, expand services or perhaps increase compensation / benefits for their employees. Ultimately, how this newly received revenue is allocated or spent is not considered; The important thing is that mining helps to strengthen the power grid.