European Energy Security | Bitcoin Education

Video Transcript:

hello there and welcome to the hash power Academy my name is Jake scander and today’s topic is going to delve into European energy security and that is in tandem with European energy policies and I’m going to take you through the context of why Bitcoin is of fundamental importance in relation to these two discussions it’s quite close to home I care about Europe um and I think it’s in absolute shambles the the duopoly of energy and Finance is of fundamental importance to everyone because when it comes to Net Zero and the subsidizing of new sources of power versus the hundreds and 100e plus history of our industrial base based on high carbon High control power sources and the move to low control lowcar carbon power sources and the benefits and the drawbacks that they both bring but in the context of energy security Europe has a dependency on oil and gas and it comes from sources that may be in contradiction to our energy security policies so where should we go with this let’s go back in history on a gold money standard the cost of War could be defined in a price of gold and every time you look at the history of warfare the price of gold drops because the cost of war is a lot of energy and thus a lot of money and in Modern Warfare times it seems to be that the value of currency seems to drop at the times of war and it’s because essentially the Fiat money system allows decision makers at the top to hide the cost of War through inflation so everyone suffers higher prices blame it on energy when it’s actually the money in the middle that is the accounting trick that steals everyone’s purchasing power and the reason why I’ve brought Bitcoin into this discussion is because if everything to do with Warfare and your ability to defend yourself is in the context of your access to energy and monetary resources and Bitcoin is a system of connecting local energy to Global Finance through computation well it deserves its weight in digital go in part of that discussion so let’s just go through some examples here if you produce power at 5 cents per kilowatt and you can run it through a computer that just needs energy and an internet connection like when you rush in the house and you connect to the Wi-Fi and plug your phone in well Bitcoin as a network is demanding transactions to be settled and those transactions are settled on the blockchain by the production of compute power through the consumption of a computer Bitcoin mining Hardware which requires electricity and Bitcoin mining has been deployed across grids and off-grid everywhere across the planet on every grid on the planet and this is because it just needs electricity and an internet connection for local energy producers anywhere in the world to export their energy onto the inter internet it sounds all weird and wonderful but that’s just the hard brass tax physics of how this network works and that is to say that if you have these volatile power sources such as solar wind and hydro that only produce power in certain times of the day or may be stranded in location because where it’s really wet really windy um or really sunny not really much Europe those areas may not be where civiliz ation live and so the physical constraint of moving power to cities and in in industrial bases that can be challenging as well because no one wants huge transmission lines across their backyard so to speak and so if you have this solution of plugging computers locally to these sorts of sources you have a buyer of energy that can move anywhere and any time that is that is because you can always monetize energy any time because there is always a block of Bitcoin to be mined so timing is not a problem in terms of the availability of power anywhere it’s because all you need is the computer to have the power input locally and an internet connection globally and this is of fundamental importance because as I mentioned energy security when it comes to the context of warfare and security is that you need an access to a lot of power and a lot of resources and Bitcoin as a system is an incentive to build more power production sources because there is a guaranteed buyer of the energy anywhere anytime you do not have physical constraints to turn the energy into money so you can rotate the money into building more energy production and as we increase the supply of energy in any particular location or country well it’s going to reduce the price that means that transportation is easier that means production and Manufacturing bases can produce things at a greater volume because the money purchases more and that relation between energy and money is so fundamental in terms of security the Russia Ukraine war has brought a wider context as to what the Modern Warfare landscape is going to look like it’s World War I with drones sadly it’s a a war of attrition you just Brute Force push your resources to the front and push back against the others and the advancements that Europe has had on the technology front of warfare highly Advanced systems missiles drones and tanks well when a 5 million euro tank could be blown up by a little fpv drone the play the playing field starts to change and you need to start thinking of of your ability to produce drones at volume and that production process is going to require a lot of energy and if energy has a cost derived in money you need some form of system to continually incentivize the buildout of energy production infrastructure and that’s exactly what Bitcoin does because you have a guaranteed buyer of energy that will consume the power to monetize it at 10 cents a kilowatt well if the price of the energy goes above that the miners will switch off so that’s more Supply to that local grid whilst demand is high and if the price of energy drops because it’s really windy it’s really wet and it’s somehow really bright at the same time high supply low demand of power well then you’ve got something that can consume that margin between buying it and monetizing it at 10 cents and this sort of duopoly that relationship ship that you’ve got a buyer and seller of energy that works opposite to the stability of the Grid in terms of when the price is going to the upside there is too much Demand versus Supply and then you’ve got a consumer of energy releasing Supply back to the Grid or you’ve got the price of energy going down which is there’s too much supply of energy not enough demand and so you need a buyer of energy a consumer of energy to step in and soak up all that EXT access cheap power and what does Bitcoin mining do it buys power low sells it high that’s the business model Buy Low sell high buying electricity consuming it into money and that context of a gold money standard is something of a historical precedent that energy and money are fundamental to any form of security framework and so you’ve got different regions that have different power sources all across Europe and if you have the introduction of computers which also produce heat well then you’ve got other costs being reduced in different areas of the economy if that’s not worth its weight in discussion uh to energy Security in Europe I don’t know what is and there’s several other pieces to this such as the communication systems of a storage space for data the blockchain storage space that’s going to remain permanently online that is only updated by The Brute Force cracking of the next block in the chain so you have a source of Truth where control actions of say drones I I do believe that there’ll be a path in which um entire swarms of drones are coordinated and communicated to one another through some form of compute framework so that they cannot be hacked into based on external uh cyber security attack vectors that is to say that if they have a way of communicating with a blockchain and the only way that they they read and understand that information is to be hardwired to communicate only through the blockchain just in the way that Bitcoin is data units on the blockchain and it’s only communicated in movement and settlement based on the proof of work of energy being consumed what these sorts of pieces do is bring about and more Modern Warfare world that neutralizes threats through moving our power projection into the Cyber domain but that will be a topic for a different day all the different Northern regions of Europe have such great opportunity for power monetization because the the process right now especially with Net Zero is that Europeans pay for renewable to be built through subsidies which essentially a subsidy is subsidizing the business to remain profitable and Contin continually build but other businesses are not getting subsidized like that that a a business that sells energy should make their money selling energy not subsidies to allow them to remain profitable and so what Bitcoin offers as a network is a monetize monetization engine in which Renewable Power sources and all other alternative power sources they they grow and expand and build out that supply of energy infrastructure that we need in Europe based on a buyer of energy allowing that Capital rotation between energy and finance instead of subsidies of your money allowing them to just remain profitable there’s so much to this but I hope this video provides some other sorts of insights as to the fundamental importance of bitcoin’s underlying infrastructure and how it can truly help Europe not just with the Three core Commodities but with carbon accounting from energy production sources the heat output of these computerss because energy is neither created nor destroyed and all the sort of block space and money that is going to be based on electricity because the interesting thing about Bitcoin is that the cost of production the amount of kilowatts to produce one Bitcoin is going up forever because Bitcoin is a database of 21 million units fixed in Supply and a continually growing amount of hash rate and electricity trying to produce those units and so the pricing system between say one Bitcoin and a certain amount of kilowatt hours is continually increasing and as I mentioned if the price of the energy goes higher than the rate of Revenue that you can consume the energy into Bitcoin well then the the miners will switch off and sell the power back to the grid and they are comparing a quantity of Bitcoin to a quantity of money that they can sell for and so there is a new pricing system of energy and Bitcoin and so if you think of it the other way around if the the amount of kilowatts to produce a Bitcoin is continually going up and there’s an exchange rate within there put it the other way around if you’re holding a Bitcoin it continually allows you to buy more kilowatt hours from the miners and the more miners you deploy across Europe you now have an asset that not only converts into dollars but converts into electricity at an ever increasing rate essentially an increase in purchasing power literally I hope this was interesting I hope you enjoy if you’ve got any comments let me know um and there’s other different topics related to this subject that I’d like to delve into so give me your thoughts give me your feedback back like subscribe all that fun stuff and I’ll see you in the next video goodbye