Power companies should mine bitcoins

[cbeast]

A lot of grid is wasted during off peak times. Energy is stored or sold in inefficient manners. Instead, they should use any excess energy in mining bitcoins to sell. Rather than raising electric rates, they can increase their customer base. Their price discovery will be the electricity/btc pair. They can choose which will be most profitable. Storage can then be bought by customers for their needs based on rates. This just seems more efficient than being forced to sell to only one market.

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[rubenelportero]

Well, the extra-energy can be stored and sold later. I think that it isn't profitable mining bitcoin with this extra-energy because of the high price of the ASICs (and the maintenance). Not only free electricity is necesary to mine bitcoin, it's necesary a investment in machines and space.

Bye

[1Referee]

Not every industry is interested in Bitcoin or Bitcoin mining.

Power companies have no reason to start mining Bitcoin because they have extra not used/needed energy.

[cbeast]

Battery storage suck. We don't even have decent electric cars. Why should power companies buy expensive wasteful batteries?

[rubenelportero]

Not all the extra-energy is stored in batteries. Do you know about Pumped storage hydroelectricity? (and it's only an example). Bitcoin is not profitable for the electricity companies.

Bye!

[chennan]

It is a good idea! The company shifts excessive electricity to mining bitcoin and generate another cash flow!From another point of view, other mining farms can't compete with power company who has cheap electricity!

[Bananana]

A lot of grid is wasted during off peak times. Energy is stored or sold in inefficient manners. Instead, they should use any excess energy in mining bitcoins to sell. Rather than raising electric rates, they can increase their customer base. Their price discovery will be the electricity/btc pair. They can choose which will be most profitable. Storage can then be bought by customers for their needs based on rates. This just seems more efficient than being forced to sell to only one market.

Actually, I think its more profitable and better for ASIC manufacturer as compare to power company to mine bitcoin. Power company can do other related business like selling battery.

 

[cbeast]

A lot of grid is wasted during off peak times. Energy is stored or sold in inefficient manners. Instead, they should use any excess energy in mining bitcoins to sell. Rather than raising electric rates, they can increase their customer base. Their price discovery will be the electricity/btc pair. They can choose which will be most profitable. Storage can then be bought by customers for their needs based on rates. This just seems more efficient than being forced to sell to only one market.

Actually, I think its more profitable and better for ASIC manufacturer as compare to power company to mine bitcoin. Power company can do other related business like selling battery.

If ASIC is more profitable for ASIC manufacturer, then power company can become ASIC manufacturer instead of battery.

Not all the extra-energy is stored in batteries. Do you know about Pumped storage hydroelectricity? (and it's only an example). Bitcoin is not profitable for the electricity companies.

Bye!

That's only a tiny percent of electricity produced.

[DannyHamilton]

As the block reward shrinks over the next few decades, and mining competition gets even tighter, I've always assumed that mining would migrate to locations with the cheapest electricity and the cheapest forms of cooling.  Depending on just how profitable mining becomes, it is very likely that mining companies will eventually merge with (or create their own) electricity companies in order to get the cheapest possible electricity.  They will also probably migrate towards the poles in search of ever cheaper cooling.

Another possibility is that ASIC companies eventually begin creating consumer devices that make use of the heat such as ASIC powered home heating systems and ASIC powered water heaters.  If these devices catch on, then they could increase the difficulty to the point where it is no longer profitable for large mining companies to exist (even if they have access to extremely cheap electricity and cooling).

[Ghostface]

You could probably say this about many things. Why don't potatoe farmers just make fries etc? It's not their industry or business to do so, even if they could turn a decent profit on it. Remember they need to fork out for the hardware and find space for them etc.

[DannyHamilton]

You could probably say this about many things. Why don't potatoe farmers just make fries etc? It's not their industry or business to do so, even if they could turn a decent profit on it.

And yet, some farmers enter exclusive business agreements with compaines such as McDonald's and all of their potatoes become either fries or hashbrowns.

Remember they need to fork out for the hardware and find space for them etc.

Certainly, but a profitable very large mining company might find it to be in their best interest to either purchase a power company, partner with a power company, or build their own.

[jyakulis]

Battery storage suck. We don't even have decent electric cars. Why should power companies buy expensive wasteful batteries?

batteries lol....you know what a transformer is right?

[DannyHamilton]

Battery storage suck. We don't even have decent electric cars. Why should power companies buy expensive wasteful batteries?

batteries lol....you know what a transformer is right?

Yes, it converts (transforms) alternating current to either higher voltage with lower current or lower voltage with higher current.  It does this through electrical induction between two coils with differing numbers of windings.  What does that have to do with the discussion at hand?

[tonygal]

Actually, this happened (on a very small scale). There is one guy who bought (or rented..? don't know)
a small water power plant. I mean really small. I think the normal way would be to sell the electricity,
so "become a power company". But instead he put miners in it. (He also offers hosting, though.)

[cbeast]

Battery storage suck. We don't even have decent electric cars. Why should power companies buy expensive wasteful batteries?

batteries lol....you know what a transformer is right?

Yes, it converts (transforms) alternating current to either higher voltage with lower current or lower voltage with higher current.  It does this through electrical induction between two coils with differing numbers of windings.  What does that have to do with the discussion at hand?

I think he's right. They use transformer stations to change amperage for long distance transmission on the grid. Still it's not very efficient compared to batteries and bitcoin would be more efficient still.

[mutha]

There is one company... still dark/experimental utilizing some very ingenious electrical usage operations here in the US.

They are setting up urban/inner city grow farms. Using Solar Wind and friction electrical generation, converting blighted inner city buildings warehouses, factories and whatnot into indoor all natural controlled environment veggie/fruit growing and utilizing excess energy to BTC mining which is more profitable than selling the extra capacity back to the electric company. The mining is allowing across the board cost savings on every level of their op's and free heating as needed in their grow ops.

Too bad the utility companies do not think outside the box like alot of indy's are currently doing and executing.

[JLynn171]

A lot of grid is wasted during off peak times. Energy is stored or sold in inefficient manners. Instead, they should use any excess energy in mining bitcoins to sell. Rather than raising electric rates, they can increase their customer base. Their price discovery will be the electricity/btc pair. They can choose which will be most profitable. Storage can then be bought by customers for their needs based on rates. This just seems more efficient than being forced to sell to only one market.

Doing this might also influence them to accept payments via BTC :-P

[Beliathon]

They will, but not yet. Check back in 3-4 years.

[JLynn171]

They will, but not yet. Check back in 3-4 years.

Lol in 3-4 maybe only electric companies will be able to afford to pay the electricity to keep mining them :-P

[jyakulis]

Battery storage suck. We don't even have decent electric cars. Why should power companies buy expensive wasteful batteries?

batteries lol....you know what a transformer is right?

Yes, it converts (transforms) alternating current to either higher voltage with lower current or lower voltage with higher current.  It does this through electrical induction between two coils with differing numbers of windings.  What does that have to do with the discussion at hand?

They only talk batteries when they talk solar cells/wind energies. Stuff that produces electricity when it's not necessary.

The current grid doesn't need batteries with its current design.

A voltage is potential energy. A transformer transforms voltage yes but is also a storage of potential energy via a magnetic field.

So, yes you need a battery for wind energy or solar energy because it does not produce a steady state energy. Thus you can't power a transformer because you do not have a constant potential difference. You think a coal power company or anything that runs off a turbine is using batteries lol?