Texas governor turns to Bitcoin miners to bolster the power grid and his re-election

[dalton99a]

https://financialpost.com/fp-finance/cryptocurrency/texas-governor-abbott-turns-to-bitcoin-miners-to-bolster-the-grid-and-his-re-election

Texas governor turns to Bitcoin miners to bolster the power grid and his re-election
Greg Abbott is embracing an industry that sees itself as a libertarian form of finance free from meddling by banks and governments
Michael Smith
Feb 02, 2022

Last fall, Texas Governor Greg Abbott gathered dozens of cryptocurrency deal makers in Austin where they discussed an idea that, on its face, seemed almost upside down: Electricity-hungry Bitcoin miners could shore up the state’s power grid, a top priority after a deep freeze last winter triggered blackouts that left hundreds dead.

The industry’s advocates have been making that pitch to the governor for years. The idea is that the miners’ computer arrays would demand so much electricity that someone would come along to build more power plants, something Texas badly needs. If the grid starts to go wobbly, as it did when winter storm Uri froze up power plants in February 2021, miners could quickly shut down to conserve energy for homes and businesses. At least two Bitcoin miners have already volunteered to do just that.

There’s no guarantee anyone will build more generation or switch off just because they’re asked. There’s even a chance the idea could backfire and put more strain on the grid overall. But at last October’s meeting at the governor’s mansion, Abbott made it clear that he was going to count on the miners’ assistance when the electricity grid faced colder months ahead. Help me get through the winter, the governor said, according to four people who attended the meeting.

Getting through the winter may be key to Abbott’s political fortunes as he stands for re-election. He faces two main opponents in a March 1 Republican primary and a tougher fight in November against Democrat Beto O’Rourke. The grid is one of the governor’s few weak flanks: The most recent University of Texas/Texas Tribune poll, from October, showed that 60 per cent of Texans disapprove of how state leaders have handled the reliability of the grid.

[unblock]

1. so... if demand is greater than supply, the solution is... more demand???

[BeckyDem]

2. Joseph Stiglitz: 'We should shut down the cryptocurrencies'

Published Mon, May 6 2019

Andrew Davis

Joseph Stiglitz, a Nobel-Prize winning economist, says cryptocurrencies should be shut down. He worries that they enable illicit activity by making money transactions less transparent.

Still, he sees the value in digital payments systems and supports electronic use of government-backed currencies like the dollar.

“I’ve been a great advocate of moving to an electronic payments mechanism. There are a lot of efficiencies. I think we can actually have a better regulated economy if we had all the data in real time, knowing what people are spending,” he says.
https://www.cnbc.com/2019/05/02/joseph-stiglitz-we-should-shutdown-the-cryptocurrencies.html

[captain queeg]

3. Hmmm. What could possibly go wrong?

I can kind of see the logic, but relying on miners to shut down is not exactly assured. If new plants can come online generating cheaper electricity that could be a good thing, but there’s plenty of unknowns. Doesn’t really sound like the kind of plan that ought to put TX grid on stable ground. More like the typical “free market” rethug BS. They should be looking at long term solutions and investments, not some cheap and quick fix that may or may not work. But I’m sure in typical fashion the rethugs will announce great achievement then walk away and let the next guy fix their mess.

[jmowreader]

4. Why do only Democrats realize how stupid this is?

The first problem I see is the BTC miners plan to move to Texas BEFORE the new generating capacity is even permitted.

Let's take a wild stab at it and say it takes three years to go from bare ground to selling electricity. That's probably short, but we'll use it for now. And let's further assume it takes a year to raise the capital, draw up blueprints, buy land and all the other things you need for a power plant before you can turn the first shovel of dirt. The crypto miners are going to move to Texas right away and start draining the electric grid...so you're effectively looking at four years of rolling blackouts before you get any new power into the grid.

And that's not to mention that the only difference between bitcoin trading and casino gambling is the dealers in casinos dress better.

[Aussie105]

5. Texas Governor Greg Abbott has new friends!

Advantage 1: All he has to do is ask them to turn their machines off if needed.

Advantage 2: If that doesn't work, he can blame them.

It's a good, Republican plan!