Michael Saylor is an avid bitcoin enthusiast, with his company having purchased nearly 130,000 bitcoins over the past few years. Six days ago, the US Office of Science and Technology Policy released a report claiming that proof-of-work mining operations have an impact on climate change.
The Department of Science and Technology believes the Biden administration needs to take action against the industry and create standards and regulations for mining. Following this report, Saylor issued a letter to journalists, investors and regulators regarding the “sheer volume of disinformation [et] propaganda circulating lately“.
Microstrategy Executive Chairman Publishes Article on Bitcoin and the Environment
Michael Saylor, Executive Chairman of Microstrategy, published an article on bitcoin and the environment. “Given the sheer volume of misinformation [and] propaganda circulating lately, I thought it was important to share the truth about bitcoin mining and the environment“, wrote Saylor on Twitter with a link to his open letter
Given the sheer volume of misinformation & propaganda circulating lately, I thought it important to share the truth regarding #Bitcoin Mining and the Environment.https://t.co/CRkayFwDsj
— Michael Saylor⚡️ (@saylor) September 14, 2022
The editorial is titled “Bitcoin mining and the environment” and discusses topics such as “The use of energy by bitcoin“, “Bitcoin compared to other industries“, “Bitcoin value creation and energy intensity“, “Bitcoin compared to other cryptocurrencies“, “Bitcoin and carbon emissions“, “Bitcoin and environmental benefits” and “Bitcoin and global energy“. Each topic shows how a number of environmental misconceptions regarding the Bitcoin network can be examined in a different way.
“Bitcoin runs on stranded, excess energy, generated at the edge of the grid, in places where there is no other demand, at times when no one else needs electricity“, says Saylor. “By retail [et] commercial electricity consumers in large population areas pay 5-10 times more per kWh (10-20 cents per kWh) than bitcoin miners, who should be considered wholesale energy consumers (who normally expect a budget of 2 to 3 cents per kWh)“, adds the editorial of the leader of Microstrategy.
Saylor points out that he thinks the world is producing far more energy than the planet actually needs. “About a third of this energy is wasted“, insists Saylor. “The last 15 basis points of energy power the entire Bitcoin network – it’s the least valued and cheapest margin of energy left after 99.85% of the world’s energy has been allocated for other uses.”
In the paragraph concerning “bitcoin vs. other industries“, Saylor cites a study by the Bitcoin Mining Council. The Microstrategy executive also spoke about the Bitcoin network and the environmental benefits this technology has to offer. Saylor mentioned Geneious CEO and ESG analyst, Daniel Batten who has published a number of articles on the subject.
“There is a growing awareness that bitcoin is quite beneficial to the environment as it can be deployed to monetize stranded natural gas or methane gas energy sources. The reduction in methane gas emissions is particularly convincing and [Daniel Batten] has written some impressive articles on this topic. It has also become apparent that power grids that rely primarily on sustainable energy sources such as wind power, hydropower and solar power can sometimes be unreliable due to lack of water. , sun or wind.added Michael Saylor:
“In this case, they should be paired with a heavy consumer of electricity like a bitcoin miner in order to build network resilience & finance the establishment of the additional capacity necessary to responsibly supply large industrial/population centres. The recent example of a major bitcoin energy curtailment on the ERCOT network in Texas illustrates the benefits of bitcoin mining for sustainable energy providers.”
The executive chairman of Microstrategy cites two links related to Bitcoin Mining Council research. Saylor also shares the casebitcoin.com macro environment research website. The Microstrategy executive’s open letter ends by thanking people for their interest in the article. Microstrategy currently holds 129,698 BTC on its balance sheet, according to current bitcoin treasury listings.