Bitcoin is the most talked about phenomena in the modern economy used by millions of people, and it’s technology, blockchain, could hold the key to many of the problems facing the economy and energy consumption today.
Before 2009 cryptocurrency wasn’t even a thought inside anyone’s mind because the first cryptocurrency wasn’t created until 2009 as a response to the bank crash in 2008.
Bitcoin is the much-hyped cryptocurrency that has been making headlines for a lot of different reasons. Some of them are because of the doubtful economists who swear to the Federal Reserve and other national banks as the true currency and their claims that biotin and other cryptocurrencies can’t be trusted. In fact, just over the last couple months Bitcoin had a record high of $19,000, but in the last couple of weeks has plunged down to around $11,000, which is still relatively high for a stock price.
To add on to all of this, there are new cryptocurrency’s being created around the world today. Each currency uses a different software and creates its own rules which the people involved in trading with the currency have to follow.
Digital entrepreneurs have used cryptocurrency for both negative things like selling drugs through websites like Silk Road, to positives like solving complex math problems or using/creating huge computers that get the job done for almost any technological job. The point is that its use has been all over the place, and it doesn’t seem like it’s the end of cryptocurrency. Instead, it seems like it’s just the beginning.
The supercomputers that are used to mine for bitcoin, unfortunately, use a ton of power to function, and their power comes from coal and gas-fired power plants, which creates more pollution.
Blockchain was the ground-breaking technology created for Uber, and the technology is now used by a lot of the competing cryptocurrency’s being created every single day.
Blockchain takes out the third party when making a transaction online, and allows users to do business without a central authority like a bank. So normally a bank would certify that when you are sending money online that it ends up not going to multiple parties online. Blockchain cuts all of this out, and instead acts a digital ledger where every computer that’s a part of this system can keep track of each transaction.
The whole idea has become an anti-government libertarian dream; there is no way that a central authority can track the transactions you make, and if you make a bad purchase and someone plays you, it’s on you, and if the decision you’ve made is the right one, then it’s also on you! Plus, the largest blockchain controlled cryptocurrency, Bitcoin, has scarcity built into it.
Of course, there have been risks using bitcoin and other cryptocurrency’s but it has made it easier for entrepreneurs to make transactions since a bank doesn’t validate the transaction, and if you’re in business this can help with a lot of things like time.
These definitely appeal to the blockchain, but you might be asking how can a software program that takes supercomputers to operate solve some problems with the climate?
Well, here’s an example it is difficult for businesses to trade carbon credits, or to help owners sell electricity, and it’s partly because of how complex the banking system is when it comes to things like that. Well, with Blockchain those making these trades won’t need a third party to tell them what to do.
The majority of the energy that we use up is generated from natural gas-fired power plants, and as the price of solar panels decreases using currencies that are decentralized and don’t take much time to have payments go through might make it easier to sell let’s say solar panel rooftops.
In many places, owners can sell back their electricity back to the power utility, but this ends up hurting the utility core business of generating and selling electricity. Which creates a problem for solar rooftop owners who want to sell their surplus energy to the companies, because a lot of Utility companies are fighting to end this practice.
Just like cryptocurrency innovated the way people see currencies; a new startup is looking to shake up the utilities and energy industry. Brooklyn Startup LO3 Energy has found out how to cut out the middleman and use the blockchain technology to help people sell the excess energy that they have.
Scott Kessler the Director of Business Development at LO3 Energy told Nexus Media, “Traditionally, your money really goes towards large corporations. The generating stations are located a distance away, now you can make sure that’s staying local.”
A growing number of states have placed a cap on the amount of carbon pollution a business can generate, and because of that several states and countries have set up cap-and-trade programs for this. So, a company that pollutes less than another company can sell the rest of their allowance to other firms.
In China, IBM is working with a Chinese firm to use Energy-Blockchain labs and a scheme to allow businesses to transfer to each other directly. The blockchain process in green energy is attractive to a lot of different investors, because of the transparency involved in it.
The Chief Strategy Officer of Energy-Blockchain Labs Cao Yin said, “Blockchain technology is expected to become an important means for effective control of carbon emissions, which is of great significance to China, the world’s largest source of carbon emissions.”
Even though blockchain is still in its infancy it’s already moving the economy forward in a multitude of ways. The funny thing is Solar is still relatively new to the marketplace, so in the end, the two might be a perfect pair together.
If cryptocurrency ends up furthering the solar industry then maybe the economists who have been so against it might finally change their minds, because the economy is changing no matter what they want to believe.
People are choosing convenience over everything else when making microeconomic decisions for themselves, and that’s why solar and crypto are both the future and why the technologies of both might lead us to a cleaner future!