Does the expression "perverse incentives" mean anything?
This argument is like energy incentives in the world were mostly fine, except that some energy was stranded and could only be picked up by Bitcoin.
For something that is supposed to "change the System" it for sure is often pitched like the System can never change. That missing (enforcement of) regulation makes it economically beneficial to just vent methane without even flaring, is not something to celebrate. It's nice that the incentives lined up decently, this time. We should work on fixing the incentives so the methane can stay in the ground where it belongs. Don't dig that well.
Say, you have access to cheap hydro power somewhere. The powerlines are not yet completed to export the electricity to where it could be more useful. Along comes a Bitcoin factory and sets up shop. Suddenly, the incentives are not in favour of ever completing that powerline, for benefits amortized over decades, when you can sell that sweet, sweet Bitcoin today.
Of course, the owners of the Bitcoin factory would never try to exert their influence and try to keep their cheap source of hydro power, or keep the methane flowing. /s
I will make sure to bring popcorn for the future culture wars between ETH and BTC, now that their incentives are so divorced.
> For something that is supposed to "change the System" it for sure is often pitched like the System can never change. That missing (enforcement of) regulation makes it economically beneficial to just vent methane without even flaring, is not something to celebrate. It's nice that the incentives lined up decently, this time. We should work on fixing the incentives so the methane can stay in the ground where it belongs. Don't dig that well.
Bitcoin was never billed to change that system, and yet it is anyway.
You're trying to let perfect get in the way of good, failing all modes of consensus until the world is uninhabitable, while this just works and fulfills the goals of all political parties at the moment: reducing emissions and being economical.
Bitcoin mining on existing fracking sites is a stop-gap solution at best, right now nobody is making new wells with the perk of adding miners or renting space to mining firms. Right now, the fracking operations are just meeting their climate goals, the captured state regulator no longer needs to be in the awkward position to rubber stamp emissions exemptions, the governor no longer needs to run interference for the whole fracking industry. Its only a stop gap solution because if 10x more wells were made after a 90% drop in emissions, then we're at the same place we were, so if you begin seeing that then be vigilant about that. But thats really not a bitcoin issue, thats a fracking issue that you're putting on bitcoin because you've had zero influence your entire life on the oil and gas sector, the separate higher standard doesn't make sense though, as - for now - this stop-gap solution is here and working. "oh no but its bitcoin, that other thing I spent so much of my energy hating" cope, my guy. this is working.
> Of course, the owners of the Bitcoin factory would never try to exert their influence and try to keep their cheap source of hydro power, or keep the methane flowing. /s
You see how you just substantiated my argument that Bitcoin naturally ends up favoring renewables, linking up the most efficient use of energy?
It’s not like there is (or should be) a limit on renewable energy production.
This argument is like energy incentives in the world were mostly fine, except that some energy was stranded and could only be picked up by Bitcoin.
For something that is supposed to "change the System" it for sure is often pitched like the System can never change. That missing (enforcement of) regulation makes it economically beneficial to just vent methane without even flaring, is not something to celebrate. It's nice that the incentives lined up decently, this time. We should work on fixing the incentives so the methane can stay in the ground where it belongs. Don't dig that well.
Say, you have access to cheap hydro power somewhere. The powerlines are not yet completed to export the electricity to where it could be more useful. Along comes a Bitcoin factory and sets up shop. Suddenly, the incentives are not in favour of ever completing that powerline, for benefits amortized over decades, when you can sell that sweet, sweet Bitcoin today.
Of course, the owners of the Bitcoin factory would never try to exert their influence and try to keep their cheap source of hydro power, or keep the methane flowing. /s
I will make sure to bring popcorn for the future culture wars between ETH and BTC, now that their incentives are so divorced.