Opinion
It is not how much, but where and when
Every mining discussion opens with a number in terawatt hours. That number says little, because the same machine can be a burden in one place and a solution in another.
This is an opinion piece. It reflects the author's view and is not investment advice.
Same consumption, different effect
Power that would otherwise be curtailed on a windy night has a different value from power drawn from a gas plant on a cold evening. Both count equally in the average consumption figure.
An honest debate looks at the moment of consumption and the generation behind it. That makes the discussion harder, but usable.
Value of a megawatt hour across a day
Illustrative profile: mining helps in the troughs, hurts in the peaks.
Three questions that move the debate
Does the site absorb energy that would otherwise be lost? Can it shut down within seconds when the grid asks? And is the waste heat reused?
Three times yes means a grid-friendly installation. Three times no means a consumer competing with households at the worst possible moment.
- Absorbs surplus rather than peak capacity
- Contractually curtailable
- Waste heat put to use
- Transparent quarter-hourly metering
What policy can do with this
A ban moves activity to countries with a dirtier energy mix. A tariff that penalises peak use and rewards flexibility changes the behaviour itself.
Policy options and likely effect
| Option | Effect inside the EU | Effect globally |
|---|---|---|
| Ban | Activity disappears | Moves to a dirtier mix |
| Peak tariff | Consumption shifts to troughs | Limited |
| Mandatory flexibility | Grid becomes more stable | Sets an example |
| Heat reuse requirement | Efficiency rises | Limited to urban sites |
Staying honest about the limits
Some installations genuinely add nothing: fixed load on a congested grid, no heat reuse, fed by fossil peaking plants. Those deserve no defence.
But treating all mining alike also hides the sites that help the grid. That is analytically lazy and counterproductive as policy.
Frequently asked questions
How much power does bitcoin mining use?
Estimates vary widely and shift with price and hardware. The total says little without location and timing.
Is mining on surplus power climate neutral?
Not automatically, but it uses energy that would otherwise be curtailed and then displaces no other demand.
Does banning mining work?
Within a country, yes, but the activity usually relocates to regions with a less clean energy mix.
About the author
Mathias graaft in on-chain data, liquiditeit en DeFi-protocollen. Hij bouwt de datamodellen achter de koers- en liquiditeitspagina's van Block #9.