Read original post

Introduction

The oil and gas industry is undergoing a digital transformation, moving from traditional methods of data collection and management to more advanced, real-time solutions. One company at the forefront of this change is Coldbore Technology, whose innovative approaches are reshaping how data is handled during drilling and completion operations.

Company Overview

Coldbore Technology, led by CTO Alex Fortin, specializes in smart data solutions for the oil and gas sector. It was founded to address the challenges in completions, such as the complexity of operations and the need to integrate various vendors and service companies. The company's technology enables the standardization and contextualization of data on-site in real time, thereby enhancing operational efficiency and decision-making.

Technological Innovations

SmartPAD

Coldbore's flagship product, SmartPAD, is a fully integrated software and hardware platform that provides real-time, sensor-driven data. This technology includes pressure transducers and valve position sensors, which offer detailed insights into frack operations. SmartPAD is pivotal in reducing non-productive time (NPT) by identifying responsibility for delays.

Edge Computing

Coldbore has placed significant emphasis on edge computing due to the industry's remote operational environments and inconsistent connectivity. Their edge solution ensures that computation and contextualization of data occur on-site, guaranteeing that personnel on the pad have first access to critical operational data.

Data Distribution

Coldbore offers multiple avenues for data access, including MQTT and WebSocket protocols for real-time streaming and API for querying data. Recently, the company has shifted towards Kafka queues for data distribution, enabling clients to consume data efficiently without overwhelming system resources.

Data Standardization

Coldbore's commitment to data standardization has led to the creation of uniform data channels across various service companies. This abstraction allows operators to receive consistent data, irrespective of the service provider, facilitating easier data analysis and machine learning applications.

Cloud and Database Infrastructure

Coldbore utilizes a microservice architecture with Docker containers for both cloud and edge applications. They prefer maintaining a level of control over their infrastructure, opting for a mix of managed and self-hosted services. For data storage and processing, Coldbore leverages PostgreSQL with TimescaleDB extension to efficiently handle time-series data.

Programming Languages and Frameworks

The company's software stack includes Rust for embedded systems, offering memory safety and attracting talent interested in developing with modern programming languages. For cloud-based services, Elixir and the OTP framework are utilized for their robustness in handling high volumes of data movement, akin to telecom applications.

Conclusion

Coldbore Technology is making significant strides in redefining data management in the oil and gas industry. By leveraging edge computing, data standardization, and modern programming paradigms, the company has established itself as a key player in the digital transformation journey of the sector. Their solutions not only optimize operational workflows but also pave the way for advanced data analytics, ultimately leading to more informed decision-making and increased operational efficiency.

Read original post

Key Takeaways

This episode of the Bitcoin Frontier podcast from Unchained delves into the misconception that increased energy consumption due to population growth or technological advancements will lead to the depletion of resources or environmental catastrophe. The guest, Andrew Myers, argues that the planet can sustain significant energy growth, and this fear is unfounded.

Challenges in California's Energy Market

Myers highlights the inefficiencies and bureaucratic layers in California's energy market where the end consumer faces inflated retail prices due to mismanagement and regulatory complexities, despite low wholesale costs for power production.

Centralization and Monopolies in Energy Transmission

The discussion brings to light the centralization and monopolistic control over energy transmission lines, which act as gatekeepers, adding substantial time and cost to the process of integrating new power generation assets or loads into the grid.

Bitcoin's Role in Decentralizing Energy Markets

Bitcoin is presented as a parallel solution to the energy industry's centralization problem, similar to how it decentralizes the monetary system. Myers envisions a future where deregulation and decentralization of energy markets, enabled by Bitcoin, will lead to more efficient and responsive systems.

Impact of Bitcoin Mining on Energy Consumption

Bitcoin mining is portrayed as a flexible and responsive consumer of energy that can adapt to real-time market needs, thus contributing to the stability of the grid. It's also seen as a catalyst for innovation and investment in new energy infrastructure.

The Future of Energy Production

The guest predicts that human ingenuity and innovation will lead to increased energy production and consumption without endangering the planet. He suggests that a Bitcoin standard could unlock human potential and lead to an energy-rich and prosperous society.

[

Humanity at a Crossroads

It’s time to come back to reality.

TFTC – Truth for the CommonerMarty Bent

](https://tftc.io/humanity-at-a-crossroads/)

Best Quotes

1. "Whether it stays the same or it increases by ten times, the planet can sustain that level of energy growth and energy production." - Andrew Myers, highlighting the potential for sustainable energy expansion.
2. "The utilities in California have a wholesale cost for power...but for layers of bureaucracy and mismanaged infrastructure, the retail price to the end consumer ends up being so much higher." - Andrew Myers, criticizing the inefficiencies in California's energy sector.
3. "They are the gatekeepers, and they add a year, two years or more to the process of building out new load or new generation." - Andrew Myers, on the monopolistic control of transmission lines.
4. "Bitcoin...brings money and decision-making power back into the hands of entrepreneurs and innovators and investors who can build out that grid of the future." - Andrew Myers, on the transformative potential of Bitcoin in the energy sector.
5. "We will see a growing class of entrepreneurs, investors and everyday people eager to produce and consume more energy to make their dreams a reality." - Andrew Myers, envisioning an energized future driven by Bitcoin adoption.

Conclusion

The podcast episode with Andrew Myers offers an insightful look into the energy industry's challenges and the unique role Bitcoin mining plays in driving toward a decentralized and efficient future. Myers effectively argues that concerns over the planet's ability to sustain higher energy consumption are unfounded and stem from a lack of understanding of the potential for technological advancement and sustainable growth. He also underscores the inefficiencies of centralized energy markets and the bureaucratic hurdles that inflate costs and stifle innovation.

By drawing parallels between the decentralization in the monetary system brought about by Bitcoin and the potential for similar transformations in the energy sector, Myers provides a compelling argument for the use of Bitcoin as a tool for market liberation. His vision for the future is one where energy production flourishes, driven by a class of forward-thinking entrepreneurs and consumers enabled by a Bitcoin standard.

This conversation not only sheds light on the intersection of energy and Bitcoin but also on the broader implications for society's progress towards a more self-sovereign, innovative, and resource-rich future. It serves as a call to action for continued advocacy for deregulation, market reforms, and the embrace of technologies that can reshape the energy landscape for the betterment of all.

Read original post

Key Takeaways

In this emergency podcast episode of TFTC, Marty Bent and Jason Brett discuss a sudden and concerning move by the Energy Information Administration (EIA) under the Department of Energy, which has issued a survey requesting detailed information from the bitcoin mining industry. The survey, which was pushed through quickly and without much notice, has raised alarm due to its extensive data demands, including the longitude and latitude coordinates of mining operations.

Jason Brett, serving as an advisor to the Bitcoin Policy Institute and a seasoned figure in the space, sheds light on the federal landscape surrounding bitcoin policy. He explains the potential legal issues associated with the survey, such as Fourth Amendment violations, and the broader implications for industry regulation.

The conversation touches upon the history of federal interest in bitcoin, starting from President Biden’s executive order on digital assets, which raised environmental concerns about proof of work systems, to Senator Elizabeth Warren’s push for more scrutiny of bitcoin mining’s energy consumption. Brett also discusses the Supreme Court case of West Virginia vs. EPA, which could challenge the EIA's survey as it targets a specific industry based on ESG considerations.

Marty and Jason consider the necessity of solidarity within the bitcoin mining industry to respond to this "attack vector" and suggest that legal representation is essential for those dealing with the survey. They also explore the potential for states to protect their interests against federal overreach and the importance of building grassroots support and lobbying efforts to safeguard bitcoin’s future in the U.S.

Links

Follow Jason on Twitter

Check out the Bitcoin Policy Institute

Sponsors

Sponsors

Best Quotes

1. "We don't just have to comply. And I think there needs to be some congressional light shed on why was this emergency announced." – Jason Brett_Context: Discussing the need for Congressional intervention to question the EIA's emergency authorization._
2. "This is about a form. And if this is your state and local... this is just a classic case of federal overreach." – Jason Brett_Context: Considering the potential for state governments to challenge the federal government’s intrusive demands on bitcoin miners._
3. "It's not like a friendly visit from your postal service person. This is like coming from a place of investigation." – Jason Brett_Context: Describing the intimidating nature of the EIA's survey and its implications for bitcoin miners._
4. "We're not going to get to your goals in 2050. It's going to destroy the planet, which Elizabeth Warren has said as much in some hearings. We have to stop bitcoin. It's destroying the planet." – Jason Brett_Context: Highlighting the extreme views of some policymakers on bitcoin's environmental impact._
5. "It's literally a physical attack vector that can be pinpointed and attacked." – Marty Bent_Context: Marty Bent explaining why mining has become the focus of regulatory scrutiny._
6. "As bitcoin gets bigger, I think we're going to need that at some point to make it so we don't have these overbearing type actions." – Jason Brett_Context: Discussing the need for a strong, organized bitcoin community to influence policy._
7. "The rent is too damn high. The government is too damn big too. Get out of our life." – Marty Bent Context: Expressing frustration at government overreach and the desire for autonomy.

Conclusion

The podcast episode serves as an urgent call to action for the bitcoin mining community and highlights a critical moment where both legal and grassroots efforts are necessary to counteract potential regulatory overreach. The EIA's emergency survey, which demands extensive and intrusive data from miners, represents a significant threat to the industry's privacy rights and operational freedom. Marty Bent and Jason Brett discuss the need for industry solidarity, legal defense, and political lobbying to ensure that this does not set a precedent for future regulation.

The episode also emphasizes the potential role of state governments in defending their economic interests against federal intrusion, as well as the importance of conveying the human and innovative aspects of bitcoin mining to policymakers. Ultimately, the overarching message is one of resilience and the belief that, despite the challenges, the bitcoin community has the power and resources to overcome these adversarial actions and continue to thrive in the United States.

Timestamps

0:00 - Intro
6:17 - Overview on “emergency” survey
15:03 - Clearly an overt state attack
21:45 - Fighting back
30:21 - Upcoming months
32:30 - Energy industry and policy
39:29 - Failure of ESG
46:31 - Making political progress
52:20 - Federal vs State
58:12 - Wrapping up

Transcript

00:00:02:13 - 00:00:05:23
Marty
And we are live. Jason, Brett, welcome to the show.

00:00:05:25 - 00:00:08:03
Jason
Marty, how you doing? Good to be here.

00:00:08:05 - 00:00:37:04
Marty
Doing well. This is a bit of an emergency podcast we've thrown together in response to the IEA's survey requests for the Bitcoin mining industry. It seems to be driven by the Department of Energy, rushed through rather quickly over the last couple of weeks. Who? Someone is calling me here. Ignore that. Yeah. And it came out of nowhere, it seems.

00:00:37:06 - 00:00:57:10
Marty
And it is forcing the industry, the Bitcoin mining industry, to formulate a response rather quickly. I think before we make any assumptions and just maybe describe what you've been working on on the policy front, your experience and how you're viewing this, the survey, this registry, if you will.

00:00:57:12 - 00:01:27:10
Jason
Yeah, So I'm an advisor to the Bitcoin Policy Institute and I've been in the space for about seven years now. I think in terms of the policy in considering Bitcoin mining, there really has not yet been anything on the federal level regarding agencies doing anything. And the start of the federal policy on Bitcoin in general kicked off with an executive order two years ago.

00:01:27:12 - 00:02:07:28
Jason
Executive order from Biden on digital assets. Part of that was concerns about sustainability. ESG It's important for people to remember President Biden is a it's his top priority right now about concerns about the environment. So part of this looked into the energy use of proof of work systems and they talked in that if you read through the executive order, one of the findings was that maybe the, you know, these agencies, federal agencies, could guide state and local partners on potential alternatives to proof of work, as well as looking at the energy consumption and better understanding it.

00:02:08:01 - 00:02:27:17
Jason
So what you have is you have an executive order two years ago that's saying we need to learn more about Bitcoin mining. We need to understand more. And at that time the Bitcoin Policy Institute responded. We had talked to people in the White House about the program and there was good, good feedback. Trey Cross had been the lead really on that.

00:02:27:17 - 00:03:02:03
Jason
As you know, Troy is really the master of this area. But what you had was and forgive the DC speak for your listeners, but kind of you had what's called a soliloquy, which is where Elizabeth Warren writes a letter saying, I think these agencies should start to look into what Bitcoin miners are doing at the federal level. And, you know, the mining contingent, if you remember Michael Saylor and I think a few other major players went and talked to the, you know, Department of Energy saying, look, this is a little overblown.

00:03:02:03 - 00:03:22:15
Jason
We don't know if this is the right angle. But as we know now, this EIA has now decided on this emergency basis. And I say emergency lightly because you've explored and I've explored, too, these are very well thought out survey questions like, I mean, for an emergency, it's like they put together these these well-thought out questions and thoughts.

00:03:22:17 - 00:03:50:08
Jason
So I think it would have taken at least a few weeks to put together. But now what they call an emergency to look into the amount of energy that Bitcoin mining is used. And they say things like the Bitcoin mining price. So what? And we now know because we saw the EIA put out on its website yesterday, not only information about why they were doing it, which is when I call it a soliloquy, that's the response to saying We hear you, Senator Warren.

00:03:50:08 - 00:04:16:29
Jason
We're doing what you're asking. We're trying to find out all this information about how much energy Bitcoin miners are using. But the other thing that besides that response is they already started giving data of their own analysis of how much energy Bitcoin mining is using. So in a matter of 24 hours, Marty, we've gone from we need to explore in an emergency basis how much energy Bitcoin mining is using to within 24 hours.

00:04:16:29 - 00:04:38:11
Jason
The agency putting up the website, all these numbers and data they've explored saying bitcoin energy is really bad. So at a minimum I think there's well, there's lots of concerns, but the baseline concern is that there's a bit of confirmation bias because they're assuming that it's bad for the environment. So this survey to them might just result in saying, yes, we agree it's bad for the environment.

00:04:38:13 - 00:05:03:20
Jason
The real concern and it's a legal matter has to do something called West Virginia versus EPA. And I say that because that's a really important Supreme Court decision. We've heard president candidate when he was running Vivek Ramaswamy say is probably one of most important court decisions in our time as it relates to Bitcoin, because it specifically prohibits the agency from doing exactly what it's doing.

00:05:03:20 - 00:05:33:29
Jason
So what it means is it can't focus on a particular industry based on like ESG. So it can't just go after an industry saying, we think there's too many problems with the environment of what your industry is doing. And the Supreme Court, highest court in the land in West Virginia versus EPA, you know, West Virginia, one. And basically what that means is the letters that Senator Warren sent encouraging this agency to do this is probably in violation of that finding by the Supreme Court.

00:05:34:01 - 00:06:03:21
Jason
And so people are now being told, as you pointed out, like if you're a Bitcoin miner and you see these letters, it's like under criminal law, if you don't report or whatever. But it's very possible this whole exercise is what the EIA is doing, could could be challenged in court and we could potentially get a stay on what they're doing or it'd be overturned because it was made very clear, again and by the Supreme Court, you know, you can't do this to an industry just on the energy side alone.

00:06:03:24 - 00:06:17:28
Marty
Yeah. And we were talking before we hit record, this is somewhat of an unprecedented attack on a particular industry via emergency authorization authorization that was pushed through is that correct in your mind? Yeah.

00:06:18:00 - 00:06:22:12
Jason
Yeah. I've never seen this at this level happen.

00:06:22:15 - 00:06:55:29
Marty
That and I was talking to Reed Browning from Cathedra. He's a CTO at Cathedral, a mining company, and he was actually ex Department of Energy and he's pretty convinced that this was definitely pushed from above the EIA, from above the Department of Energy, because when you look at when the survey was proposed on January 24th and when it was approved, which is January 26, like something happening that quickly within the U.S. federal government really never happens.

00:06:56:02 - 00:07:05:06
Marty
And so it seems like they've been planning this behind the scenes, just getting their ducks in a row before actually pushing this forward.

00:07:05:08 - 00:07:25:25
Jason
Yeah. I mean, they invoke the emergency basis for them to execute it in the way they're doing it. But again, you look at those surveys and those questions, it's pretty evident that there was some time, considerable time put together. You know, one thing I've been thinking about with this, too, is this would almost be never tolerated in any other industry.

00:07:25:27 - 00:07:46:25
Jason
And sorry for any Detroit Lions fans, but it's kind of like being a Lions fan where you've never won the Super Bowl. We're all kind of, you know, you're a nice guy. I'm a nice guy, But but there's this sense of like, you know, if this was the NRA, this this would be shut down already, Right? If they said we're going to do a survey, figure out how many guns all Americans have, you know, the NRA would be at the White House.

00:07:46:27 - 00:08:21:05
Jason
And I think there's a certain degree of like where we need to start thinking as a as a community, as bitcoiners. You know, we hold a lot more power than we realize. You know, people reach out if we figure out ways of influencing and doing advocacy, you know, we can get this to go well. The only reason that we're even talking about this and that it's likely next week, in my opinion, this is going to start this process of because they said February to June start going around and asking information is there really isn't enough powerful force to kind of stand in their way to stop them from doing it, You know, and that's that's

00:08:21:05 - 00:08:40:23
Jason
the problem with this with new industry and there's this element of we've starting to think about how Bitcoin could change the world and how it might affect things in government. And, you know, a lot of people don't like that. And this is this is an attack vector that I have to say, unfortunately, like this is Elizabeth Warren has executed this one pretty well.

00:08:40:23 - 00:08:47:24
Jason
And unfortunately, it's obvious from this that it's not going away. It's something we have to figure out an answer to.

00:08:47:27 - 00:09:14:24
Marty
And so I want to talk about what we can do it as a response. But first, let's dive into the details of the survey. Is there any Fourth Amendment protection? Because it seems like this is a pretty egregious affront to privacy rights of individuals and corporations. It's literally asking mining companies to go to their electricity providers and have their electricity providers dox information to them about their other customers.

00:09:14:26 - 00:09:23:12
Marty
They're no the overall percentage that the bitcoin miners are using with their overall capacity.

00:09:23:14 - 00:09:48:18
Jason
Yeah, I, I chuckle because you know, we talk about Operation Choke point we've seen that about like the banks trying to cut off like I've been thinking this is like operation pull the plug like let's go to all the electricity providers so who's giving the energy to Bitcoin and then give the government the ability to like, you know, chase them away from from diverting all this energy to this unimportant project?

00:09:48:20 - 00:10:15:11
Jason
The survey that the idea is that it definitely it talks about a commercial crypto asset miner and what that's a tricky one because you said it yourself, individuals or businesses. You know, I have a few Bitcoin miners in my downstairs, right? I mean, do I does that mean that if if I get this survey or it says all need to report, like at what point am I a commercial endeavor?

00:10:15:15 - 00:10:47:02
Jason
Right. And there are EPA rules about pollution that certain industries have to comply with. But this this is likely a Fourth Amendment violation because it's it's probing for information. Right. And it's asking specific, like you say, asking for the electricity providers and the names, the electricity providers and giving just just downright like information about your business that may be a competitive factor that you don't necessarily want to part with.

00:10:47:04 - 00:11:09:00
Jason
So it it crosses it. It's a it's a challenge for anybody. Like for me, I have to think about and say, well, does this apply to me? I mean, I have half a dozen miners downstairs, but like, am I a commercial miner? Do I just need to fill out this form in case? So there's a question of the who who does this apply to?

00:11:09:02 - 00:11:32:04
Jason
Because it's certainly casting a wide net, but it absolutely is a Fourth Amendment violation. Because think about it, what if they what if you're talking about like mining like something or doing something with computers? And they said, we need to know how much energy your computer is using. And like, everybody has to tell you. So it seems hard to believe that it wouldn't violate that that constitutional protection that we have.

00:11:32:06 - 00:11:39:04
Marty
I mean, they literally want the longitude, latitude coordinates of all your operations.

00:11:39:07 - 00:11:58:23
Jason
And, you know, and that's what I'm trying to understand, because we saw that map, right, that showed 56 Bitcoin miners. So it feel like do they already know the coordinates anyway? And they just because because then you run the trouble of then you answer this form and what if you get it wrong and they then hold you in violation because you didn't answer truthfully.

00:11:58:25 - 00:12:26:28
Jason
So we had a latitude and longitude is is pretty, pretty priceless. But but I mean talk about a surveillance state. It's it's we've we've reached this this is we've we've departed from the the the idea of you know, we think the U.S. is against bitcoin mining. You know we know some senators have a problem with it, too. Like this is when we actually see sort of the state at work.

00:12:27:00 - 00:12:50:23
Jason
And I mean, this form, you know, you have to either what, mail it or or fax it back or something. You can't even really it's just clearly they have an operation for it. But I mean, this is I think there's some questions people need to ask that starts with is like, what does this mean? Like when people come and talk to you, you know, should you even talk to them?

00:12:50:23 - 00:13:17:18
Jason
She say, I need a lawyer first, you know, like just don't I think you have to I think it's going to require everybody to get legal representation to answer this form properly to avoid any problems with the law. Later. And that's when you're papering an industry to death, which is unfortunate. But we've never But to be honest, I mean, really, Marty, like I'm I'm saying all this and at the same time, I'm I'm slightly at a loss for words because this is really new territory.

00:13:17:18 - 00:13:30:21
Jason
I just I can't ever. Can you think in your lifetime of an industry being sort of this this collection process is just targeted And I just know I don't think anyone's ever heard of this before, so.

00:13:30:24 - 00:13:50:19
Marty
Not in the United States. But we do have one example of another government doing this throughout Bitcoin's history, and that's Venezuela. They collected all this data and then took all the information and quickly confiscated everybody's miners to mine for themselves. Yeah, it's just something that everybody should be worried about.

00:13:50:21 - 00:14:17:10
Jason
Yeah, And look, we already know the U.S. has confiscated a lot of Bitcoin, like in Mt. Gox. We don't know to the degree that they mined themselves. But I do think that what's critical here is that they're talking about in that memo that we saw today on the EIA website, concerns about, you know, this is what's happening in the United States because China shut off its Bitcoin mining.

00:14:17:10 - 00:14:49:18
Jason
And so, you know, we know it's a growing issue in the U.S. And so there's clear policy reasons behind it. You know that everyone's come to the U.S. now, you know, to mine. And I think that the the real danger here is like once they set up the registry and they've collected this information, what like next steps they're going to take, and that's like you said, there's the confiscation.

00:14:49:18 - 00:15:19:11
Jason
But in this case, is it extra taxes for using the energy? And it's so it's it's the problem. I think that is it's the once you have that registry set up and people just start complying with this just by complying with it, it makes it looks like we think there's a problem. Right. So that's that's why I think that setting up this registry, like what could the next step be?

00:15:19:11 - 00:15:30:20
Jason
I don't think it's confiscating the miners. I think to them it's like shutting it off because they want to decarbonize, you know, the planet. Yeah.

00:15:30:22 - 00:16:04:02
Marty
And it's it's weird, too, because a lot of the information they're projecting to want to understand better is already disclosed by many of the public miners, particularly and even some private miners, particularly those participating in demand response programs. I mean, just two weeks ago, we had a -4% difficulty adjustment because miners were participating in demand response to send electricity back to the grid, making it more stable and creating a more stable pricing environment for residential consumers.

00:16:04:02 - 00:16:24:04
Marty
And yeah, it is an overt attack feels that way. It certainly is that way. If it smells, walks like a duck, sounds like a duck, smells like a duck at the duck. And I guess that's a question. I mean, I wrote my newsletter. I've stayed up pretty late. I was a little tired, a little aggressive in my wording.

00:16:24:04 - 00:16:56:24
Marty
But I think personally, I would say we should not comply, shouldn't fill this out at all. Everybody, like you said, should get legal representation and fight this. And that's because over the last three days now two days, I've been having conversations with different people in the industry. And that's I think we should use this platform to say like it seems like there's a number of people ranging from the largest miners in the country to small private miners that are having these individual conversations.

00:16:56:24 - 00:17:21:23
Marty
And there needs to be some way for everybody to get together and have a coordinated action together in solidarity against this, because I think there could definitely be individual actors who want to be the ones who fight this fight. But I do think there's a need for solidarity across the industry to fight this this particular aggression.

00:17:21:26 - 00:17:43:00
Jason
Yeah, And I think that like that word and I read your newsletter and it could, you know, feel your scent sense of it. And I think you're right. Like when you started to say at first maybe this seemed like a positive thing, right? Like they want to learn more information, but as you look more and understand the purpose of it, it doesn't seem like it's just simply, you know, let's do a fact finding mission.

00:17:43:00 - 00:18:04:13
Jason
And of course, the problem is we don't kind of cooperate then where they can say, well, see, they have all this stuff to hide, even though we're doing things like helping balancing the grid, that the funny thing is think about this for a second. Like, what's your least favorite U.S. agency of of all or most Americans? What would you say that the agency they dislike the most?

00:18:04:15 - 00:18:07:23
Marty
MM The IRS.

00:18:07:25 - 00:18:34:13
Jason
Perfect. So even with the IRS, when you and I file taxes, it's not about this mandatory compliance that if you get if you don't get your taxes perfect, you're going to like go to jail. It's I'm reporting based on what my records are. And then if there's a problem, you can come in and audit me. What I don't understand is if they really genuinely wanted to figure out what this process was of how the energy is used by Bitcoin, miners have it be a self-reporting mechanism.

00:18:34:13 - 00:18:57:15
Jason
You know, just like you report in your taxes. Like I said, no one likes to even do that. But as the miners send in the information, don't send out, you know, this form saying it's mandatory. And if you do anything wrong, it could be a criminal violation. It's and that's where it's something. Unfortunately, everyone has to get used to in this industry is it's treating us like criminals.

00:18:57:15 - 00:19:13:15
Jason
Right. Like it's kind of we have to hit you over the head because you might not fill this out correctly because we don't really trust you in the first place. Plus, you're wasting all this energy instead of just saying, look, file your taxes, you know, maybe not your favorite thing and really won't be your favorite thing if we have to audit you later.

00:19:13:15 - 00:19:32:27
Jason
But you know, you report to us and to me that's at a minimum. It's not great, right? No one like I said, no one likes the IRS. But you at least you report what you your income is. You know, that's always the joke, right? Did you cheat a little bit on your taxes? Whatever, Stuff like that. So if they want to learn all this information, they can pull it.

00:19:32:27 - 00:19:56:05
Jason
Pull that, do it that same way. But this is this is not in that just let's reported in like no criminal violations. If you don't know, just let's start collecting the information because we want to learn more and we want to see, you know, what we might want to do with this information and better understand maybe there's benefits to it and so it just doesn't give give us the benefit of the doubt.

00:19:56:05 - 00:20:19:25
Jason
So at a minimum, I think this the way that some of this is worded needs to be changed. The form itself might be a problem or a violation of the way the form is put together. B The reason I say the legal representation is it's not even even if you had everything right, right. And even if you had, you know, you're minors, you know, you're like and everything the way the form says, you know, if you get something wrong.

00:20:19:27 - 00:20:36:20
Jason
That's why I think everyone needs a lawyer to fill it out if you are going to fill it out. Because what if you get something wrong? It's it's like a bit of a catch 22. And so so there's lots of I think there's room. Luckily, we live in a country where there's room to get lawyers to help us with this.

00:20:36:20 - 00:21:09:22
Jason
We don't just have to comply. And I think there's there needs to be some congressional light shed on why was this emergency announced and that, you know, the biggest problem to me is this price increase that Bitcoin went up in price. And so and their assumption that therefore that, you know, there's going to be more activity. You know it notably doesn't mention that to have having is coming up soon I'd love them to try to evaluate what that might mean to it but here we are and maybe to get the Bitcoin ETF.

00:21:09:22 - 00:21:35:25
Jason
So like Cathie Wood and others involved in this conversation because you have all of Wall Street now benefiting from a spot Bitcoin ETF and this policy looks like it's a bit of a reaction to that. You know like and wouldn't put me it wouldn't put I wouldn't put it past sort of the progressive attitude in this country of the minute something starts to be successful in a capitalistic light, you know, New York, New York, embracing these Bitcoin ETFs, prices burning.

00:21:35:25 - 00:21:55:02
Jason
And of course, it came back a little bit. You know, this is when we start to see that the liberals get really crazy, right? I'm not trying to take sides between like, you know, conservatives and but but that's what they tend to do. They tend to just start go in and use these backdoor mechanisms to get what they want anyway, even if it's really already been decided.

00:21:55:02 - 00:22:17:11
Jason
This is sort of policy. You know, there wasn't like a notice of rule saying, we're thinking about doing this and everyone respond or us respond and treat us like professionals and say this is the kind of information you should be looking at if you're really interested in learning about the energy use of this industry. This is just let's use the mechanism of the state to get what we want and because because they're terrified.

00:22:17:12 - 00:22:24:09
Jason
They're terrified now that there's all these Bitcoin ETFs that that Bitcoin might win and succeed.

00:22:24:11 - 00:22:50:02
Marty
Yeah, you can go back to the congressional point to the is that a way to prevent this from moving forward is if somebody in Congress was like, hey, why was the emergency authorization used? Like, shouldn't this go through Congress, go through a vote first, think, is there a roundabout way where Congress could stand up, say, you should have passed this through us first, like you know, the authority to do this?

00:22:50:04 - 00:23:16:28
Jason
Yeah, it doesn't it doesn't actually have to be a vote of Congress. But every federal agency has oversight from a committee. And right now there's the House Energy and Commerce Committee that would have oversight. So that the chair of that committee, Cathy McMorris Rodgers from the state of Washington, could call a hearing or or request information as to why this was asked for.

00:23:17:00 - 00:23:52:13
Jason
I'm not sure how much of a bitcoiners she is, but I do know she supports some of the broader, you know, concepts of like us being competitive against China. But that's really what you want is you want some chair of a committee who has oversight over this agency to send a letter immediately, send a letter asking questions like, you know, a letter that would say within two weeks, please explain what this is, what resources may be already deployed, you know, questions about it and maybe even say, maybe even in the letter request.

00:23:52:13 - 00:24:07:00
Jason
Please wait on, you know, wait on this hold off like a month until you come before Congress and can really explain what you're going to be going out and doing with all of this information. Yeah.

00:24:07:02 - 00:24:16:05
Marty
So how do you think the next six months plays out, ideally in your mind?

00:24:16:07 - 00:24:51:25
Jason
Ideally, I think that people might take enough exception to this. It might affect the outcome of the elect presidential election. And a lot of this might be reversed because right now this is a symptom of the Biden administration and the overwhelmingly progressive influence from Senator Warren. I think what I hope plays out and what I think you'll see, Marty, is you'll see people come to us in this community because people will realize that this can happen to this one industry.

00:24:51:25 - 00:25:12:18
Jason
It can happen to any industry. And when you look at the amount of information that they're asking for, the degree to which they're doing it, it's a stifling of innovation. So I think that my hope would be in the next six months that they curtail this and that a lot of the large miners have already given information to Senator Elizabeth Warren.

00:25:12:21 - 00:25:41:12
Jason
You know, so maybe leave it at these these are what the large commercial miners are. And I mean, hopefully get something like this shut down to the degree that there's enough pressure right. From Congress to say this is an overreach on administrative level. And I think you're going to have a huge lack of noncompliance. And I don't say that to say people are going to listen to your show and say, know, I'm not going to sign it.

00:25:41:20 - 00:26:04:20
Jason
I think some people just won't. They they'll look at it. They won't be sure how to answer it. Some people may not even be aware they fall into this classification. I mean, there's been no notice, no press, no explanation how to do it. This is not like a friendly visit from, you know, your your postal service person. This is like, you know, coming from a place of investigation.

00:26:04:20 - 00:26:15:16
Jason
So I really have a hard time seeing how they're going to get the results they want if, in fact, they do pull all this stuff between now and June.

00:26:15:18 - 00:26:51:24
Marty
Yeah, and it's funny, the justification is you need to do this to make sure that our grids are secure and our energy systems are secure and everything this administration has done is a complete projection onto the Bitcoin industry specifically. But I wrote it in the newsletter. So if you want to stabilize the grids, make sure that you're building more reliable baseload and spin up the leases on federal lands again, maybe finish the Keystone XL pipeline, maybe take all the red tape off of nuclear power generation.

00:26:51:27 - 00:27:39:02
Marty
There's many other lower hanging fruits that the government could take advantage of instead of attacking a specific industry. And that's that's where I think the signal is, is they have to know this to some extent. And do they really care about Bitcoin's energy use or are they using this, as you mentioned earlier, as an attack vector to hinder Bitcoin's proliferation throughout the economy and its adoption by individuals that could something like this, the survey go out, the data come back, and the government either manipulate the data or present it in a disingenuous way to fearmonger about all the energy that Bitcoin is sucking up.

00:27:39:04 - 00:28:11:13
Jason
Yeah. Or come up with policies for the electricity providers, right? Who like maybe limit the amount of electricity they would be willing to give to this industry. There's there's this is this is where you would say like this the dam has broke. Right. And we're now is this now the era of like Bitcoin mining regulation and what that looks like in the US where there's actual federal regulations around the way you can mine Bitcoin.

00:28:11:15 - 00:28:30:00
Marty
I hope it doesn't get to that point. That's one thing I wonder too, like talking about allies not only within the industry but across industries. I mean, I've seen it up close and personal. I'm very involved with multiple mining operations throughout the country, in the utilities companies that we work with love us because we're able to provide them more revenue.

00:28:30:00 - 00:28:57:10
Marty
They can buy power in bulk passes, lower prices on to residents. That's an but still it's still early in that relationship between the energy sector and the Bitcoin mining sector. But this is something I've been saying at conferences and events over the last few months is like, we really need to get allies in the energy sector and help leverage their lobby to come help us put our case forward.

00:28:57:10 - 00:29:24:09
Marty
Like, Hey, this is actually really good for our energy systems and our companies, our bottom lines and our ability to reinvest in infrastructure. That's that's one thing I'm hopeful will materialize. But now with this this registry for going out there, it seems like the time is and I need to convince those in the energy sector to think we're valuable economic partners to come come help us fight this.

00:29:24:09 - 00:29:32:22
Marty
And as you mentioned, like West Virginia versus the EPA, they've certainly gone through this before. And is that the Chevron deference case as well, or is that separately?

00:29:32:24 - 00:29:34:11
Jason
That's that's the one.

00:29:34:14 - 00:29:35:06
Marty
Yeah.

00:29:35:08 - 00:30:02:00
Jason
So also, you know, if you remember like that, there's things ebb and flow in DC. We're in an election year. There's this one great documentary. I've got to try to find it, but it shows really like the cycles of the way Democrat presidents care about, like ESG, and they show them like putting solar panels on top of the White House and the like.

00:30:02:00 - 00:30:20:12
Jason
As soon as Trump moves in or Bush moves in, they send construction workers on top of the White House and they take hammers. They knock the solar panels down, throw them off the roofs, you know, put them away for four years until the Democrat comes back. So what I guess I'm saying is, I mean, this is it seems a lot right now to us, right, Because this just happened.

00:30:20:12 - 00:30:58:09
Jason
It's like, what does it mean? There's a lot of unknown. It's kind of scary. But you know, within a year, if there's a new administration, like all of us could go away really, really fast. And I think that's to me, like the hope at this point, because this there's just this is this is like epic level of of FUD about Bitcoin energy use and it's likely that this was scrambled in an emergency way because they know that if it's under a new administration, whether it's Trump, Haley or whoever, they're not going to put somebody in charge of an agency and do anything like this to Bitcoin.

00:30:58:12 - 00:31:26:14
Jason
And I hate that Bitcoin has to become partizan that way. But I think for right now that's at least what it will take all of this kind of reporting stuff to go away. It's it's President Biden's and a little unusual that he's really really focused on ESG. And I and I've talked about this on other podcasts before, too, of you know, we hit this real roadblock with this administration because they decided to look at digital assets for the first time.

00:31:26:20 - 00:31:47:19
Jason
You know, we had the huge market growth. Everything bubbled up and we just so happened to come across like a president that isn't just your average Democratic, you know, president who kind of cares about the environment, but has made it his number one priority. And so when you had those that really weren't fans of Bitcoin, you know, say, look, this is well, we know it's not.

00:31:47:19 - 00:32:14:06
Jason
But look, use of energy, it's completely contrary to your objectives. We're not going to get, you know, to your goals in 2050 Bitcoin. It's going to destroy the planet, which, you know, was born. It said as much in some hearings. We have to stop Bitcoin. It's destroying the planet. It was his number one priority as a president. And so I think that that is why you're seeing this today is the last couple of days, this emergency thing go through because it is a priority of President Biden.

00:32:14:09 - 00:32:37:00
Jason
This is his number one priority. And and so that we've they've hit upon the idea of what proof of work is. They feel like it used a lot of energy. And to them, it's like backwards. It's like we're going back to the coal era to the and it doesn't think through all the things that, you know, you've so eloquently talked about with maybe we need to go back to nuclear or anything like that.

00:32:37:03 - 00:33:13:17
Jason
It's just like up here, we go back, we're just taking steps backward when it's an emerging innovation, Right? It's it's a new kind of money. It has so many possible uses, not just on the mining side, but so many uses in society. And it's just so we just kind of hit this really bad. It's bad timing because we just had a president who has been unusually worried about the environment and has been pandering for the most part to a lot of the environmental groups on a lot of these issues, not just Bitcoin, a lot of the, you know, energy industries have been facing this now for the last few years with the ESG narrative.

00:33:13:19 - 00:33:50:22
Marty
Yeah, which is hilarious considering we just have to look over the Atlantic to Europe and I think they went first with this aggressive net zero energy policy and it's been extremely detrimental to their quality of life and the stability of their energy systems. And they rely a lot reliability of their energy systems and again, it is nonsensical in an election year considering that most of his first term has been plagued by high inflation and particularly in the energy sector, which has come down over the last year.

00:33:50:22 - 00:34:13:07
Marty
But there's what's going on in the Middle East. The price of oil could certainly go much higher rather quickly if things escalate there. And it's just weird that they're doubling down on this ESG policy when it's an abject failure. Every everywhere you look that it's been implemented at full scale.

00:34:13:09 - 00:34:26:20
Jason
Absolutely. And there's been a lot of folks who are now talking about reversing the ESG rate, like people are saying, we're going to get rid of this, you know, as soon as this is definitely going to be something that's going to affect, you know, the election.

00:34:26:22 - 00:35:10:02
Marty
Yeah, And that's that's the other weird thing, too, is like obviously, I've been a notorious anti-gay advocate. But I mean, if you look at it, just like off grid miners reducing methane emissions, if you care about ESG, Bitcoin is a perfect vehicle to sort of bring about a more efficient energy system, whether it's offered or all great on grid solves the and yes, the social side of things where it's okay if these miners can come in and create grid stability and create stronger revenue streams for individual utility providers or power plants, I think that allows them to have a stronger balance sheet which will allow them to get more creative.

00:35:10:02 - 00:35:18:21
Marty
The pricing, which typically benefits residential consumers with with lower prices.

00:35:18:24 - 00:35:47:21
Jason
Yeah, absolutely. Yeah. You know, I know that you don't want it necessarily to come to this, but my my vision sort of three or four years out would be we're still going to be able to mine Bitcoin. But the larger commercial enterprises, a Bitcoin think of somebody who shows up from Washington DC in a suit and tie and, you know, puts on a hard hat and you know, is the, you know, Bitcoin mining inspector right?

00:35:47:23 - 00:36:07:06
Jason
And you know, it's going to poke around, you know, look at what you're giving back to the grid, you know, questioning your practices. I don't think we'll get to like it won't be Venezuela. They won't co-opt it. I don't think they'll they'll never shut down something because remember that the same government loves and counts on our tax money.

00:36:07:06 - 00:36:39:21
Jason
Right. So they'll how can we tax Bitcoin? How can we tax these these businesses to bring revenue back to the government? But I think the end game is that at least for the larger Bitcoin miners, this is the sustainable path, no pun intended is I think four or five years from now you might see sort of these inspectors from the the DOE to come out and just poke around like they do any other any other aspect of energy production.

00:36:39:23 - 00:37:01:06
Jason
And I'm not saying that's a good outcome, but I like because I think we'd still be able to to to do Bitcoin mining. I just think we we might be seeing the era of, of, of regulation of Bitcoin mining in some degree or another in this country because, you know, as you said, it's like A.C. but we've just we've moved in this country so far away of just basic freedoms.

00:37:01:06 - 00:37:06:21
Jason
It's hard to imagine that an industry could ever just be left alone entirely.

00:37:06:24 - 00:37:34:21
Marty
Yeah, I've hope we can get back to it. Hopefully Bitcoin succeeds and they don't have all the money they need to to burden us with the pencil pushers and the scrutiny. It's just insane because when you think the innovation, the Bitcoin mining has brought the energy system, it's like palpable, it's tangible, it's very clear in the data. The data is there, it's out.

00:37:34:21 - 00:37:59:19
Marty
That's the most frustrating thing about this is they're asking for data that's already public that they could easily find in public filings by companies like Riot, Marathon, Iris, whatever it may be, stronghold like strongholds doing alone to solve the waste coal problem that exist in Pennsylvania. That should be something that people are cheering on. There's this weird vendetta.

00:37:59:21 - 00:38:19:14
Marty
I think it's because they can't control Bitcoin, the asset or the network. At the end of the day, mining is just the attack vector they've chosen because it's very visible and physical. So it's literally a physical attack vector that can be pinpointed and attacked.

00:38:19:16 - 00:38:45:18
Jason
It's funny that you say that too, like for riot and Marathon and these are others brings bears to mind. Well, this type of activity allows the larger Bitcoin miners to get bigger because you might have a lot of people who are smaller commercial miners who maybe can't afford or don't have to pay for a lawyer to fill out this form or might just be kind of, you know, straight up intimidated by the form to say this is not worth our business.

00:38:45:18 - 00:39:22:25
Jason
If if this is, you know, the US government's asking for all this information, it's turn off the mines and turn off the miners. So it might create a little bit more consolidation, which isn't a good thing, right? We need the decentralization. We need the smaller miners as well as the larger miners. But that's that's part of my fear with this is not just about the the substance of the form, but the manner in which it's being delivered and the business decisions that might come, you know, come up for people saying, well, you know, I'll fill out the form this one time, but I'm getting out of this business because it's, you know, clearly this is

00:39:22:25 - 00:39:42:00
Jason
something that, you know, I don't want to like. Now they're asking who my electrician tricity providers are. So there's this element of I guess it's kind of intimidation, right, that we're just extra burden, extra regulatory burden. You know, why would I want to be involved in this? So it's going to take the true believers to kind of push back.

00:39:42:00 - 00:40:13:03
Jason
And, you know, one thing that's been done in the past was about it was more about like the Bitcoin core developers in turn. Remember, it was like in 2016, but there were these like 50 lawyers in DC that got together and started offering like pro-bono help. So that I mean, that could be something like something I'll think about, like how can we coordinate to help get, you know, pro-bono help for people who are going to be getting these forms so they don't just walk away from the business and also so they can feel protected, you know, if they choose to answer the form.

00:40:13:06 - 00:40:47:27
Marty
Yeah, I guess that dovetails into a broader topic, which is the state know of Bitcoin, the Bitcoin industry's influence over policy, which you touched on in the beginning. But what would you like to see in terms of the industry really getting smart about interacting with the federal government despite whether or not we would like to do it seems that you do have to play ball to a certain degree just to protect your interests and the profitability of your business and the ability to to exist at all in the first place.

00:40:48:00 - 00:40:53:24
Marty
Like, have we made progress in recent years? Is it happening fast enough?

00:40:53:26 - 00:41:17:11
Jason
Yeah, I think we've made progress. Like, I mean, I'll toot the Bitcoin Policy Institute's horn, you know, I'm an adviser to them, but they responded. They engaged with the White House when they were looking at it and some of their report did talk about the benefits of Bitcoin mining. So it's it's not this is just one administrator and and his sort of, dare I say, narrow view of what Bitcoin is and what the way it should be handled.

00:41:17:13 - 00:41:41:11
Jason
But there has been open reception to the possibilities of the benefits for Bitcoin mining. And so I think we need to curate that. My belief for a long time has been we need to create something akin to whether it's the NRA. People don't like that because they feel like it's just this far right or something. Of the AARP, I mentioned the idea of the NRA.

00:41:41:11 - 00:42:12:07
Jason
I'm like the Progressive Bitcoiners podcast and they didn't like that. How are we going to sell that to progressive Democrats? But you call it the AARP. But if you have a group of people, even if they're in a minority and they believe in something strong enough, you need that that grassroots support, which the playing ball part is finding some smart people right in Washington, DC, who are also believers and who know who to speak to in power, who know how.

00:42:12:09 - 00:42:50:20
Jason
Washington, DC works, you know, understanding, you know, who to go talk to, the right people. And if you think about anytime there's an action that the NRA doesn't like, I mean, it's instantly stopped. You know, it's very hard to get any kind of bill right regarding, you know, guns and Second Amendment issues. So the idea of the Fourth Amendment and finding that that narrative to go with the fact that there's all these people out there that believe Bitcoin, that care about it, that maybe you're willing to, you know, like you do with NRA, you know, chip in ten or 15 bucks, you get a magazine.

00:42:50:20 - 00:43:31:09
Jason
But, you know, you have your support, build that up. I think that doesn't exist yet for us. It's it's starting to like BPI is a good start. But remember, it's a51c3 nonprofit. So it doesn't actually, you know, go and try to change policy or change legislation directly with lobbying. So I think as Bitcoin gets bigger and there's like the Bitcoin ETF are growing and other things that, you know, getting a getting a good crew of Bitcoin lobbyists that can organize a grassroots campaign that would already be instead of you and me talking like this, we already be in front of the right officials trying to, you know, get this changed or get this modified or

00:43:31:11 - 00:43:52:06
Jason
to be quite honest, this is already kind of done right. The forms already printed and everything. The idea in DC is you want to try to get something before it's complete. So like, you know, you maybe have the right people in play who like this is sort of the rumblings of what's going to happen and they can run to the White House to sort of say, no, this you should you better not declare an emergency on like Bitcoin mining that's, you know, absurd.

00:43:52:06 - 00:44:12:15
Jason
So I do think that's the kind of juice that that we need to protect Bitcoin. It it it goes very antithetical to the way a lot of people, including myself, believe. Like I've always said, I'll teach anybody how you go talk to your congressman or talk to your, you know, local representative. I don't want to be like an intermediary or a middleman.

00:44:12:17 - 00:44:40:13
Jason
I want it to be peer to peer, you know, But it's one degree or another to have the right messengers and build that grassroots support is going to be necessary to protect kind of the core tenants of what Bitcoin is about. And it's so great the, you know, the rights of property, the right to code. There's so many aspects of this that makes it so much in the American spirit, the American way that, you know, that's what I hope we can find.

00:44:40:13 - 00:45:01:08
Jason
I think that would be a really exciting kind of grassroots movement to get together with. And, you know, I'll say this like some people in Bitcoin I've spoken to before on this and they know I'm a lobbyist and everything. And, you know, they kind of the question always comes up, Marty, and the debate into, well, why do we need you?

00:45:01:08 - 00:45:17:01
Jason
You know, we don't want to lobby. We're just going to do our own thing and just sort of ignore like what DC does. And the problem with that is that there's people in DC to care about what you're doing. And this is like case in point, you know, if you just sort of ignore them, then they come up with all these things and they make up their own stories.

00:45:17:01 - 00:45:37:14
Jason
So you just at some point or another, if enough people decide you have your own storytellers there to kind of protect the turf and as Bitcoin gets bigger, I think we're going to need that at some point to make it so we don't have these overbearing type actions. We're getting there. We're seeing some reactions. You know, BP was on the phone all day yesterday.

00:45:37:14 - 00:45:54:20
Jason
You know, David Zell and that group trying to figure out what to do or not quite there yet, where we have sort of the juice of an NRA or something to kind of just step in and push back. And I think most people in Bitcoin will come around and realizing this is part of the game. We need to just play that for now so.

00:45:54:22 - 00:46:26:21
Marty
We'll know we've made it. When the NBA is synonymous with the National Bitcoin Association and the National Basketball Association. And so that's the goal for is to get there. One last topic to touch on, which I think is important to bring up is states standing up for companies in their borders. Obviously, there's a big federal or state standoff coming going on down here in Texas right now at the border.

00:46:26:21 - 00:46:48:06
Marty
We saw that trend of states asserting their autonomy from the federal government during COVID lockdowns. That seems like something that is becoming more prominent in terms of national. The states standing up and say, now we're going to do our own thing. You see states standing up for their companies in their borders, regards the federal government, or would that be important?

00:46:48:06 - 00:46:50:24
Marty
At the end of the day?

00:46:50:27 - 00:47:12:23
Jason
You know, I think that would be pretty powerful. I mean, when like DeSantis tried to do the whole anti cbdc thing or say, in Florida, we're not going to have a cbdc. I mean, the government prints money at the federal level and it's not really I don't know that the law would be effective, but like talking about Texas and the border and that too, to that point, this is about a form.

00:47:12:23 - 00:47:39:07
Jason
And if this is affecting, you know, your state and local businesses, I mean, this is just a classic case of federal overreach. You'll likely have a lot of state opposition to it. And, you know, the one thought I had when you were sort of sharing that, it's like, you know, with Bitcoin, it's about the consensus. Right. And a lot of times in government when these programs start, it's a lot about like consensus and like, do you get the results?

00:47:39:07 - 00:47:57:25
Jason
So like, you know, you send in, you know, people with the badge, you know, the enforcers and saying here and fill out these forms. But like if enough people don't fill out the forms or don't comply, you know, that's they don't have enough of a consensus. They don't have enough of the information that way. It's possible they just walk away.

00:47:57:25 - 00:48:14:06
Jason
You know, they've already come up with their own conclusions. They already put out yesterday on their website how much Bitcoin energy is using and looks like they have all this data in there, you know, talking about want to do this, you know, very careful data collection practices. The problems with these jokers is it's not like a geological survey.

00:48:14:06 - 00:48:31:29
Jason
You know, there's actual people and businesses that you're exploring and kicking the tires around. And it's a it's a violation of privacy. So absolutely. I mean, if if we're willing to if you sort of start seeing what's happening, the dynamics in Texas right now. Right. But the border is about filling out a form is that state reps just say we're not filling it out.

00:48:32:03 - 00:48:39:10
Jason
You know, our companies won't fill it out for you and create a federal versus state. Yeah. Standoff.

00:48:39:12 - 00:49:04:23
Marty
Wow. This that's what I love to hear. Getting excited is talk. The rent is too damn high, the government is too damn big. Get out of our life. It's. It's funny. I mean, again, it's just, uh. Yeah, this stuff should be expected that Conor has been talking about these hypothetical adversarial situations for a decade and a half now.

00:49:04:26 - 00:49:50:13
Marty
I mean, and it should be expected. It just is disconcerting when you finally have it's like, Oh, God, here we go again. We got a spend bunch of money and get a bunch of lawyers, write a bunch of newsletters, articles, get some data and fight back, spend a bunch of money to do this. And that's the frustrating thing, I think, for a lot of people in this industry, because I think, as you would agree, that the innovation that's happening, whether it's within the mining industry, at the payments layer, at the just sound digital money layer, it's extremely exciting and extremely encouraging for all of humanity to think that a bunch of 70 to 90 year

00:49:50:13 - 00:50:14:23
Marty
old individuals in DC who really don't understand or maybe they do understand, but just don't like Bitcoin from a philosophical and ideological perspective are going to try to throw the baby out of the window because they don't like it and it's just get out of the way. And so it's very frustrating.

00:50:14:25 - 00:50:40:24
Jason
I mean, it's hard to believe we're about to have a potential presidential contest where people in like eight decades of life each like where's the hope? Where's the JFK or whoever you want to call it, right of out of our time. And and I think one thing that probably would be helpful would be to show Washington, DC the faces of like what Bitcoin mining is about, make sure that they're real people, real jobs, real professions.

00:50:40:24 - 00:50:58:12
Jason
I think that's what we need to get to because right now they're they're kind of able to dehumanize it. You know, it's like Bitcoin itself. It doesn't really exist. We don't know what it does, but it waste all this energy, you know, showing stories of people who've made, you know, careers for themselves, you know, hire people, you know, get involved in the industry.

00:50:58:15 - 00:51:30:10
Jason
And they're being responsible about the energy use. Right. Working with grids. You know, there's a there's a powerful story to tell, you know, for the Bitcoin mining community. And I think, you know, if we can figure out a way to tell it correctly, you know, then then that's something that can can push back on this One thing, you know, just like with the, you know, the 51% attack is, you know, realize some of these folks like the environmental groups, this kind of this angle of attack, it's not going to go away.

00:51:30:12 - 00:51:48:27
Jason
It's always going to attack it. Just the way will always be attackers, the Bitcoin network. We just have to make sure the incentives are aligned in such a way where we're able to keep, yeah, the sound money and everything else, you know, dream alive here in the U.S. And I think that it's they picked the wrong country to try to pull this kind of stuff in.

00:51:48:29 - 00:51:52:07
Marty
Yeah, we're going to win, Jason. We're going to win.

00:51:52:09 - 00:51:52:24
Jason
Yeah.

00:51:52:26 - 00:52:11:24
Marty
It's not going to be easy, but nothing worth doing was ever easy. So, look, luckily we have individuals like yourself who understand these problems very intricately can help advise us as we're fighting this. And thank you for hopping on the part. I mean, you did me yesterday. I was like, Can you record tomorrow? I think it's a pretty important sell.

00:52:11:27 - 00:52:15:09
Marty
Thank you for coming around quickly to have this conversation.

00:52:15:11 - 00:52:17:21
Jason
Absolutely. As you're talking to Imani.

00:52:17:23 - 00:52:33:28
Marty
Yeah. I think we'll post this right away at Logan just to get it out there, because the time it's time we're pressed for time. The clock is ticking. We need to really begin coordinating and in fighting back against this, I think we'll win, though.

00:52:34:00 - 00:52:35:02
Jason
Yeah.

00:52:35:04 - 00:52:44:03
Marty
So where can anybody listen to this? Find out more about you, what you're doing, and how you can help.

00:52:44:05 - 00:53:10:23
Jason
Yeah. Demi at my date, my Twitter handles at regulatory. Jason And also reach out to the Bitcoin policy Institute that's at BTC policy and you know we can direct you to sort of your resources as I can definitely share you know start to think about a list of lawyers that I want to put together to maybe get people support any questions at all.

00:53:10:28 - 00:53:30:24
Jason
You know, you want to figure out how to talk to politicians. Maybe I'll work on like sort of like a letter or something you can start to send in. But at the end of the day, like it's it's important to just not just fill out this fact. There's lots of reasons, you know, talk to your business advisors, consultants, lawyers before you just fill out this form because it's already February.

00:53:30:24 - 00:53:38:29
Jason
Right. And they said they're going to start the first week of February. That's Monday, right? That's in three days. So yeah, yeah. Just DM me on Twitter. I'll get back to you.

00:53:39:01 - 00:53:54:09
Marty
Awesome. We'll link to Jason's Twitter, the Bitcoin Policy Institute's Twitter in the notes, so go check those out. And Jason, thank you again. Extremely important work. I'm sure we'll be talking about this again at some point in the next six months.

00:53:54:12 - 00:53:57:12
Jason
Sounds great, honor. Be on your show, Marty Quick then.

00:53:57:15 - 00:54:02:28
Marty
Tell everybody at the Bitcoin Jawn I said, What's up on Monday? Got it. All right. Peace, love freaks. Okay.

Read original post

The oil and gas industry has experienced a significant technological evolution in recent years, with industry professionals like Jeff Hughes leading the charge. With a background that intersects accounting, technology, and energy, Hughes' story exemplifies the non-linear career paths often found in the tech and energy sectors.

Background and Career Path

Jeff Hughes, the founder of PointFlow Technologies, began his career with an accounting degree from Oklahoma State University. His first encounter with coding came while pursuing an engineering major, where he learned VBA and app-building skills that would later prove invaluable.

Hughes' professional journey took him to ONEOK in Tulsa, where as a credit analyst, he identified opportunities for efficiency through technology. He automated financial models using Bloomberg terminals, significantly reducing manual data entry tasks. This skill set led him to roles in finance and IT, where he continued to innovate and push tech boundaries in the energy sector.

Revolution Resources and PointFlow Genesis

Hughes later co-founded Revolution Resources in 2018, where he initially wore multiple hats before specializing as IT Director. Despite the company's success, Hughes felt the urge to tackle new problems, leading to the creation of PointFlow. PointFlow was born from a desire to improve accounting processes and a passion for technology, aiming to provide solutions for small to mid-sized operators looking for cost-effective alternatives to mainstream software.

PointFlow's Approach and Offerings

PointFlow Companies operates various subsidiaries, including PointFlow Technologies, which focuses on providing lower-cost and highly customizable tech solutions. The company utilizes tools like Quickbase to create adaptable software that meets the unique needs of each client.

One of PointFlow's products is a competitor to Wellview, targeting operators who require robust data management without the high price tag. The software integrates functionalities such as daily reporting, cost tracking, and more, under a single, user-friendly platform.

The Cloud vs. On-Prem Debate

Hughes has been a vocal advocate for on-premises solutions, citing cost and control as primary factors. He points out the hidden expenses and complexities of cloud services, such as ongoing VM costs, even when not in use. His preference for refurbished servers and localized control stems from firsthand experiences of cost-efficiency and the ability to customize infrastructure to specific business needs.

Security Considerations

While cloud services tout advanced security features, Hughes argues that human error remains the weakest security link. He emphasizes the importance of internal vigilance over reliance on cloud-based security, sharing anecdotes about the ease of accessing sensitive data due to lax security practices in the field.

Conclusion

The technological landscape within the oil and gas industry is diverse and continually evolving. Professionals like Jeff Hughes are at the forefront, blending expertise from different domains to drive innovation and efficiency. Through PointFlow, Hughes offers a glimpse into the future of industry-specific technology—flexible, cost-effective, and tailored to the unique challenges faced by energy operators.

For more information or to get in touch with Jeff Hughes and PointFlow, visit their website at pointflowco.com or reach out via LinkedIn.

Read original post

The Kelce Moment

During the recent conference championship games, Travis Kelce's interaction with his brother stood out as a significant moment. Post-game, Travis Kelce was approached by Taylor Swift, but he shifted his attention to embrace his brother instead. This exchange highlighted the tight-knit bond between the Kelce siblings, underscoring the importance of family within the context of professional sports.

Coaching Decisions: The Case of Dan Campbell

Dan Campbell, the head coach known for his aggressive play-calling, faced criticism for opting to go for it on fourth down multiple times during a crucial game. Statistically, aggressive play on fourth down can be justified, as exemplified by a high school coach in Arkansas who has adopted a no-punting, always-on-side-kicking strategy based on mathematical analysis. Despite the statistical support, many coaches may avoid such tactics due to the fear of appearing imprudent should the decisions backfire.

LNG Export Projects: An Economic Evaluation

Recent developments have seen the White House announcing a pause on pending LNG export projects to assess the environmental and economic impacts. This decision appears to primarily affect projects in the permitting process rather than those already under construction. The economic implications of this pause could be significant, potentially affecting market competitiveness and investor confidence. The US's LNG export capacity is crucial not only for domestic economic strength but also for maintaining a strong position in the global energy market.

LNG Export Pauses and Global Energy Strategies

The pause in LNG export projects raises questions about the United States' strategic positioning in the global LNG market. Other countries, such as Saudi Arabia, are pressing ahead with shale gas projects and investments in LNG infrastructure, which could lead to shifts in market share and long-term implications for US energy security.

The Role of Free Markets in Energy Project Development

There is a debate surrounding the idea that markets should be allowed to decide the fate of energy projects. Some argue that a free market approach would result in the most economically viable projects succeeding, while others contend that there may be valid reasons for regulatory pauses, such as assessing environmental impacts. However, the abundance of natural gas in the US and the market dynamics suggest that the country is well-equipped to support further LNG development without compromising energy security.

The Impact of Energy Policy on International Relations

US energy policy decisions, such as the pause on LNG export projects, have broader implications beyond domestic markets. A reduction in US market share in global gas exports could weaken the country's economic competitiveness and influence in international affairs, highlighting the interconnectedness of energy policy and geopolitics.

The Intersection of Energy Development and Environmental Concerns

Environmental concerns play a significant role in energy project development, with some advocating for a transition away from fossil fuels like coal. The debate often centers on the environmental benefits of natural gas as a cleaner alternative to coal and the potential for gas to play a role in reducing emissions. This discussion reflects the ongoing tension between energy development and environmental stewardship.

The Future of Nuclear Energy and International Cooperation

As nuclear energy gains renewed interest as a low-emission power source, the challenges of constructing new nuclear plants have come to the forefront. French company EDF, a leading developer of nuclear plants, has faced significant budget and timeline overruns in projects across Europe and China. The ability of countries to collaborate and overcome these challenges will be crucial to the future of nuclear energy as a viable and scalable solution for global energy needs.

Electric Vehicle Buses: Real-world Challenges

The adoption of electric vehicle buses has encountered practical difficulties in various cities, with issues ranging from mechanical failures to charging problems. The bankruptcy of Proterra, a major manufacturer of these buses, has left many municipalities with non-operational fleets and limited options for repair or replacement. This scenario demonstrates the complexities of transitioning to electric transportation and the importance of reliable manufacturing and support infrastructure.

Oil Markets: The Influence of Hedge Fund Activity

Oil markets have seen recent support with the price of West Texas Intermediate crude oil moving into the mid to upper $70s range. This price movement has been partly attributed to short covering by hedge funds. However, the overall market sentiment remains cautious due to concerns about global demand and geopolitical factors. The oil market continues to be influenced by a combination of trading activity, inventory levels, and broader economic trends.

Read original post

In a CNBC interview earlier today, former Secretary of Energy Rick Perry voiced strong criticism against the current administration's pause on energy policies, which he believes will negatively impact the American economy and job market. Perry, also a former governor of Texas, is skeptical of the administration's portrayal of the climate crisis as an existential threat and suggests that this pause could inadvertently lead to an increase in coal plant activity, particularly in Europe.

Perry argued that if the goal is to genuinely address climate concerns, the U.S. should promote the use of clean-burning American liquefied natural gas (LNG) rather than halting its production. He warned that the expected economic fallout would extend beyond the primary LNG-producing states of Texas and Louisiana, affecting jobs in Ohio and Pennsylvania—states critical to the political landscape.

[

Peak Cheap Oil Is A Myth, NGLs, & Winding Down Wind Farms

Recent trends in U.S. oil production have surprised many, with significant growth despite expectations to the contrary. The concept of “inventory runway” has been central to these discussions, referring to the duration for which producers can maintain or increase output levels.

TFTC – Truth for the CommonerStaff

](https://tftc.io/peak-cheap-oil-myth/)

The former secretary suggested that the president's actions might be politically motivated, aimed at appeasing environmentalists within the Democratic Party. Perry expressed concern that unilateral decisions by the administration, circumventing Congress, could signal a disregard for the legislative process and the will of the American people. He drew parallels between energy policy and immigration policy, implying a pattern of bypassing Congressional approval to satisfy a political agenda.

Perry also highlighted the geopolitical implications of the administration's energy stance, stating that it sends a negative message to European allies who rely on the U.S. for energy security and to reduce dependence on Russian energy sources, which can be used as a geopolitical weapon.

In conclusion, Perry anticipates a strong voter response in November, reflecting dissatisfaction with the current energy and immigration policies. He cautions that the administration’s current path could have far-reaching consequences for American energy workers, the political climate, and international relations.

Read original post

Texas experienced a significant winter storm named Heather, which tested the state's electric grid's resilience. The Electric Reliability Council of Texas (ERCOT) managed the situation, and there was much discourse regarding the performance of renewable energy sources during the event.

Grid Performance

During the storm, ERCOT implemented new operating procedures and conducted winter inspections, which appear to have contributed to the grid's stability. In addition, the demand for electricity was lower than anticipated, with a 13% reduction on the first day and a 10% reduction on the following day.

Role of Renewables

Renewable energy sources, particularly wind power, played a crucial role in the grid's performance. West Texas wind underperformed due to the storm's impact; however, the Gulf Coast and South Texas wind generation were robust. Additionally, battery storage systems reportedly performed well. Despite the success of renewables, there were still periods where fossil fuels (natural gas, coal, and nuclear) constituted a significant portion of the energy mix, reaching 85% to 95%.

Challenges and Improvements

While the grid fared well during the storm, it was suggested that luck played a part due to favorable wind conditions. The need for better reporting on the state of charge for batteries was identified as an area requiring improvement. Moreover, the Public Utility Commission (PUC) faced criticism for its handling of the situation, although it was noted that lessons were learned from the previous Winter Storm Uri.

Demand Response and Communication

Notices were issued by ERCOT encouraging energy conservation. This demand response, potentially triggered by proactive communication, is believed to have contributed to the lower electricity consumption during the storm. Awareness of energy conservation measures among consumers and power generators, especially those using natural gas and nuclear, was higher due to the experiences from Winter Storm Uri.

Infrastructure and Investment

To address future electricity needs, the complexity of the power grid was highlighted, including the necessity of transmission lines capable of moving generated power to where it is needed. Discussions around new projects, such as the proposed Southern Cross transmission line, underscored the intricate challenges in building a resilient grid.

Conclusion

The Texas grid's performance during Winter Storm Heather indicates a measure of progress in grid resilience and the beneficial impact of renewable energy sources. However, the reliance on fossil fuels remains significant, and the grid's success was partly attributed to lower demand and favorable weather conditions for wind generation. Going forward, improved infrastructure, better reporting mechanisms, and continued investment in diverse energy sources will be crucial for the grid's long-term stability and reliability.

Read original post

Bitcoin's Impact on Human Rights

This fireside chat held at Pubkey in New York City presented a deeply engaging conversation on how Bitcoin is not only a financial asset but also a tool for promoting human rights and freedom. The discussion detailed Bitcoin's use cases beyond mere investment and price speculation, focusing on its significance in upholding financial freedom and sovereignty, especially in regions where these are not taken for granted like in many western countries.

The core topics included the negative portrayal of Bitcoin in mainstream media, the Human Rights Foundation's (HRF) initiatives to showcase Bitcoin's positive impact, the importance of Bitcoin for financial sovereignty, and the role of Bitcoin in addressing infrastructure challenges in Africa. Additionally, there was an insightful exchange on the practical challenges that Bitcoin faces, such as scams that tarnish its reputation, and the need for more localized solutions and education.

The episode featured Carla Kirk-Cohen, a software engineer and Bitcoin Lightning developer, who shared her insights on Bitcoin's potential in Africa, the mismanagement of government services like electricity, and the innovative ways in which Bitcoin mining is financing energy infrastructure in remote areas. She also highlighted the importance of empowering local engineers and developers to create Bitcoin solutions tailored to the specific needs and challenges of African countries.

[

Bitcoin Energy & Mining Summit Reflections

There is no stopping an idea whose time has come.

TFTC – Truth for the CommonerMarty Bent

](https://tftc.io/energy-mining-summit-bitcoin/)

Best Quotes

1. "Bitcoin, in fact, is a tool for freedom."
   • Context: This quote underscores Bitcoin's potential beyond an investment vehicle, emphasizing its power to enable financial sovereignty and free speech, especially in societies where individuals may be marginalized.
2. "Wherever there is poverty and desperation, there will be people who are going to fall for [Bitcoin scams]."
   • Context: Carla Kirk-Cohen reflects on the challenge of overcoming the stigma associated with Bitcoin due to scams, especially in regions where people are vulnerable and desperate for financial solutions.
3. "I don't believe there's another cryptocurrency out there that can stand up to the biggest governments in the world."
   • Context: The conversation turned to the question of why Bitcoin, as opposed to other cryptocurrencies, is the ideal choice for empowering disenfranchised regions. It points to Bitcoin's resilience and decentralized nature as key to resisting exploitation by powerful entities.
4. "I think it is that we need to empower engineers in the African continent... We need businesses built out of Africa, serving Africa."
   • Context: This quote calls for a focus on fostering local talent and entrepreneurship in Africa to create Bitcoin solutions that are genuinely useful and sustainable for the continent's unique challenges.

Conclusion

The podcast episode provided a nuanced and comprehensive look at Bitcoin's role in advancing human rights and freedom. It painted a picture of Bitcoin that goes beyond the typical media narratives, illustrating its potential as a powerful tool for change in regions plagued by government mismanagement, lack of infrastructure, and financial restrictions.

Through Carla Kirk-Cohen's experiences and the initiatives of the Human Rights Foundation, listeners gained insights into the tangible ways Bitcoin is being used to solve real-world problems, from providing electricity in off-grid villages to enabling financial transactions in countries with volatile currencies.

The overarching message of the episode was clear: Bitcoin has the potential to be much more than a digital currency or an asset class. It can be an instrument for empowering individuals, fostering innovation, and promoting sovereignty in a way that traditional financial systems have failed to achieve.

As we look to the future, the episode leaves us with thoughts on the importance of supporting and investing in local solutions and education to maximize Bitcoin's positive impact worldwide. It serves as a reminder that the journey toward financial freedom and human rights is ongoing, and that technologies like Bitcoin can play a vital role in that journey.

Read original post

Last week the team at Bitcoin Park in Nashville, Tennessee hosted the Nashville Energy and Mining Summit. As you may be able to tell by the name of the summit, professionals from across the mining and industries congregated to discuss a wide range of topics. I still have a bunch of the discussions from the end of last week ping ponging in my mind, so I figured I'd write down some of the things I took away from the event and share them with you all here. The summits at Bitcoin Park follow Chatham House rules, so I won't be able to attribute any of the takeaways to particular individuals.

Geographic Distribution of Hashrate

After the Chinese Communist Party decided to ban mining within China in the middle of 2021, a material amount of hashrate migrated to the United States. Current estimates state that anywhere from 35-40% of bitcoin's network hashrate is operating in the United States. With a large chunk of that located in the state of Texas. It was funny that the summit was happening last week because there was a polar vortex that devoured the Southern part of the United States, which spike the demand for energy on grid systems and forced miners accounting for gigawatts worth of power to wind down to ensure the grids remained stable. At one point, ~25% of the total network hashrate came offline, with some saying that Texas miners alone sent 2 gigawatts worth of electricity they would have used back to the grid.

25% of bitcoin hashrate is offline!

Down from 525 EH to 395 EH in just few days. Caused by freezing weather in the US - miners turning off to save the grid.

The grid needs the energy for heating households so miners switch off automatically. Demand response at its best🤌 pic.twitter.com/vVTBN8f545

— Braiins (@BraiinsMining) January 17, 2024

This showed up in the difficulty adjustment over the weekend, which came in at -3.9%.

via mempool.space

While it is exciting to see that miners are playing a crucial role to stabilize grids during periods of peak demand, it is not ideal to have this amount of hashrate concentrated in the United States. This shouldn't be surprising considering the fact that Americans, despite the collectivists who make up our federal government, are extremely entrepreneurial, have access to the most mature capital markets in the world, and the most robust energy infrastructure in the world (again, despite what the collectivists have done to destroy these advantages).

Luckily for those of us who worry about geographic hashrate centralization, the discussions during the summit have made me extremely optimistic that hashrate is about to enter another phase of rapid geographic distribution. It is becoming clear that energy rich countries in the Middle East are becoming well aware of the opportunity bitcoin mining presents for them to take advantage of their cheap electricity and stranded energy sources. At the same time, advancements in ASIC water cooling technology have reached the point where it is becoming viable to run mining operations in extremely hot geographies.

On top of this, bitcoin mining is proving to be a great way to bootstrap energy systems in areas across Africa that do not have the correct economic incentives in place to justify build outs. A consistent buyer of first and last resort solves the zero to one problem.

Expect mining activity to pick up in the Middle East, Africa and South America.

Bitcoin ASIC Wars

With Bitmain's aggressive pricing of their s21 series of miners ($14/Th) out of the gate it is clear that the largest bitcoin miner manufacturer in the world is attempting to use its economies of scale to muscle out their competition. It will be interesting to see if the pricing moves are able to suffocate the smaller ASIC manufacturers. I think MicroBT should be safe, but the others are probably sweating. If the s21 series from Bitmain proves to provide the market with durable and reliable hardware, we could see the bitcoin mining hardware market turn into an entrenched duopoly. Though, it is encouraging to see hardware providers catering to home miners like FutureBit seeing a lot of success in the market.

ASIC Firmware

It is becoming abundantly clear that the stock firmware offered by Bitmain and MicroBT is not meeting the demands of the market. Miners located in different environments and in different economic situations demand different outputs from their machines. The ability to tap into the firmware running on the machines is essential to running a mining operation as efficiently as possible to ensure the long-term health and financial viability of a mining fleet. Miners have had to turn to after-market firmware like Braiins OS+ to reap these benefits.

Unfortunately, to even get after-market firmware like Braiins OS+ to the market it takes a Herculean effort for the firmware producers to jailbreak the machine and make it so their firmware is compatible. I think it is very clear that something needs to happen to create a mining firmware standard of sorts to make it as easy as possible for third party firmware producers to bring better products to market. A return to the open source standards set by a project like CGMiner would be a step in the right direction in my opinion.

Alternative Revenue Streams And Consolidation

As the landscape in mining becomes more cut throat due to the sheer amount of competition that is entering the arena (nation states, utilities companies, power plants), the ability for most miners to depend solely on mining revenues is going to falter. It is imperative for any sizable miner to - if they haven't already - begin thinking about incorporating alternative revenue streams into their business plans. Miners engaged in demand response are already doing a good job of this. The profit margin squeeze is coming as low cost energy producers and nation states who can operate at a loss for longer begin to enter the market at scale. I am more convinced than ever that miners will begin to consolidate with large energy producers and utilities companies to drive their costs down to rates that will ensure they remain competitive. Well actually, it will be a mixture of consolidations, energy companies incorporating their own mining operation, and miners acquiring energy assets.

The Energy Professionals Are Here

The Energy and Mining Summit was particularly exciting for me because it was the first mining event I've been to over the last six years that convinced me that top-notch operators and professionals from the energy sector have fully groked bitcoin mining and see an opportunity to leverage their skills and expertise to throw jet fuel on the mining industry. To date, miners have been fighting an uphill battle against their lack of experience with power markets and infrastructure build outs. Even though the mining industry has matured considerably over the last few years, I believe this has been an outcome predominately driven by pure grit, determination, and a deep understanding of an asymmetric opportunity. Even though miners deeply understand the asymmetric opportunity that bitcoin mining presents in the world of electricity price arbitrage, the last five years or so have been a pure baptism by fire in the energy sector. Filled with miners making mistakes when signing power purchase agreements, not understanding the logistics that go into energy infrastructure build outs, and not knowing the nuances of the power generation side of things that can trip them up at some point.

The industry has certainly learned a ton in a short period of time and the overall level of understanding will continue to increase. However, the reinforcements have arrived on the front lines in the form of power and infrastructure professionals who have come to understand the asymmetric opportunity at play and are now focused on using their decades of experience to teach miners the right way of doing things. Structuring power purchase agreements the right way. Aligning incentives with power producers to ensure long-term partnerships materialize. Cutting down the time it takes to build infrastructure and facilities. All of that knowledge is coming to the bitcoin mining arena and I could not be more bullish.

Regulatory Landscape

Despite all of the vitriol toward bitcoin mining and bitcoin more generally coming out of Washington DC, it doesn't seem that miners are that fazed. Again, they understand a massive opportunity and they aren't going to allow some screeching Karens to make them back away from the action. This is the way. There is too much at stake and the collectivists aren't sending their best. The bitcoin mining industry has more data to combat the baseless FUD than ever before and the vibe shift is well under way. I don't think there is any need to cater to those screeching from their pedestals in DC. In fact, I think the numbers are speaking for themself that the benefits bitcoin mining provides companies, grid systems and energy producers are undeniable. One of the largest power providers in the country attended the summit and made it clear that miners are a net benefit to their operations. We have just reached the point where the benefits have piqued the interest of the power providers where they deem it necessary to lean in and begin working more closely with the mining industry to better understand what we need and where we can be the most beneficial to their operations.

There is no stopping an idea whose time has come.

Final thought...

Modernity is filled with hideous aesthetics.

Use the code "TFTC" for 15% off

Read original post

Key Takeaways

Core Topics and Themes:

1. Bitcoin Mining and Energy Infrastructure: This rip focused on the convergence of bitcoin mining and energy infrastructure. The discussion highlighted the growing importance of energy knowledge in the bitcoin community and how understanding energy can influence the future of bitcoin mining.
2. Network Consensus and Miner Incentives: The conversation touched on the role miners play in the bitcoin network, with an analogical reference to miners as "slaves" who are well-compensated but must adhere to network consensus.
3. Mining Summit and Industry Growth: The panelists reflected on the success of the mining summit, noting the deep insights shared regarding the mining industry's growth, innovation, and challenges, particularly around network hash rate and energy requirements.
4. Decentralization and Hash Rate Distribution: There was a focus on the geographic distribution of hash rate and how it relates to the resilience and decentralization of the bitcoin network. The panelists expressed cautious optimism about the ongoing efforts to decentralize mining power.
5. Regulatory and Political Dynamics: The episode also touched on the implications of political and regulatory dynamics on bitcoin and mining, including the potential influence of demand response programs and the interplay between miners and government entities.
6. Bitcoin Protocol and Development: A significant portion of the discussion delved into bitcoin protocol development, including the potential activation of new opcodes like OP_CAT, which could enable advanced functionalities such as drive chains and covenants.
7. Consensus and Change Activation: The discussion addressed the complexities of achieving consensus in the bitcoin community and the challenges in activating changes to the bitcoin protocol.

In-Depth Analysis:

• The podcast provided an in-depth analysis of the bitcoin mining landscape, the role of energy infrastructure, and how it intertwines with the broader bitcoin ecosystem.
• It emphasized the critical nature of discussions around bitcoin's future, the necessity of off-the-record conversations, and the importance of maintaining a conservative approach to protocol development.
• The panelists debated the implications of introducing new opcodes like OP_CAT, weighing the potential benefits against the risks of added complexity and potential centralization pressures.
• The conversation about consensus and change activation highlighted the delicate balance between innovation and the need to preserve bitcoin's core values of decentralization and immutability.

Best Quotes

1. "The miners are slaves that get paid very well. They're forced to listen to the network consensus." – Context: This quote encapsulates the paradox of miners being both well-compensated and yet strictly bound by network rules.
2. "One of the coolest parts about the park is it's one of the few places in the world where you can have these hard-hitting, high signal, off-the-record conversations." – Context: This quote reflects the unique value of spaces where candid discussions about bitcoin can take place without the pressures of public discourse.
3. "We need more and more collaboration that happens off the record so people actually feel comfortable talking about the hard topics." – Context: The quote underscores the need for private forums to address challenging issues as bitcoin's influence grows.
4. "As much as I am still kind of worried about the risks, I know for a fact now, after being here the last two days, people know these risks, and they're not just sitting idly on their hands going, 'I hope this works out.'" – Context: This quote highlights the proactive mindset of those in the bitcoin mining industry regarding the various risks they face.
5. "The reality is that people have just been building this out, and the developer mindshare on top of it is absolutely insane." – Context: In reference to the Noster platform, this quote speaks to the momentum and collective effort in the developer community.
6. "I think it's important to bring it up. While I had Shinobi up here, but while we're here, we're talking about mining." – Context: This quote illustrates the interconnectedness of various topics within the bitcoin ecosystem, from mining to protocol development.
7. "I think as bitcoin scales, bitcoin is going to be affected by all sorts of different macro and smaller micro kind of things." – Context: This quote suggests that bitcoin's growth will intersect with many external factors, demanding adaptability and foresight.

Conclusion

This episode of Rabbit Hole Recap provided a rich tapestry of insights into the current state and future trajectory of bitcoin mining and protocol development. The panelists navigated the complexities of the evolving landscape, touching on themes ranging from the significance of energy infrastructure to the intricacies of achieving consensus for protocol upgrades. It highlighted the critical role that private, high-signal discussions play in fostering a deeper understanding and collaborative spirit among stakeholders.

The podcast's overarching message underscored the necessity of balancing innovation with caution, particularly when considering changes to bitcoin's foundational code. It also emphasized the importance of community engagement in determining the direction of bitcoin's development, while acknowledging the inherent difficulties in gauging widespread consensus.

Moving forward, the conversation set the stage for a continued exploration of bitcoin's adaptability in an ever-changing world. It invited listeners to contemplate the delicate interplay between technological advancement and the preservation of bitcoin's core principles. As the ecosystem matures, the insights shared in the podcast are likely to spark further debates and discussions, ultimately contributing to the robustness and longevity of bitcoin.

Read original post

The energy sector is a complex and evolving landscape, influenced by technological advancements, geopolitical shifts, and environmental considerations. A recent discussion on the Big Digital Energy show from the Digital Wildcatters Network brought forth various perspectives on the future of energy production, particularly focusing on oil and gas, renewable energy, and the implications of policy decisions.

Oil and Gas Production

U.S. Production Growth and Inventory Runway

Recent trends in U.S. oil production have surprised many, with significant growth despite expectations to the contrary. The concept of "inventory runway" has been central to these discussions, referring to the duration for which producers can maintain or increase output levels.

Debates on Peak Oil and Resource Abundance

A contentious debate has emerged between those who argue for the concept of "peak cheap oil" and those who view it as a myth. Proponents of the "peak cheap oil" theory assert that the industry is facing diminishing returns from existing wells, particularly in major basins such as the Permian, Bakken, and Eagle Ford. They point to data indicating a reduction in estimated ultimate recovery (EUR) rates and suggest that aggressive well spacing and interference could lead to a decline in production.

In contrast, others argue that technological innovation, combined with the vast resource in place, ensures a future of abundance. They highlight the significant contributions of natural gas liquids (NGLs) to the overall oil production figures and suggest that advancements in drilling efficiency and enhanced oil recovery (EOR) techniques will sustain and even increase production levels.

U.S. NGL Production

The United States has seen a substantial increase in NGL production, reaching levels that position it as a major global player. The inclusion of NGLs in the definition of oil and their contribution to refinery inputs has been emphasized as a factor in assessing the country's energy abundance.

Renewable Energy and Indigenous Land Rights

Wind Farm Removal in Oklahoma

A federal judge in Oklahoma has ordered the removal of a 150-megawatt wind farm built by Italian energy company Enel on Osage Nation lands. The ruling came after the company allegedly ignored the tribe's claim that a mining lease was required before harvesting wind energy on the land. The decision to dismantle the wind farm, estimated to cost over $300 million, sets a significant precedent for indigenous land rights and resource extraction.

Energy Policy and Emissions

Germany's Emissions and Energy Imports

Germany has reported a reduction in emissions and coal usage, attributing the decrease to an increase in renewable energy sources. However, this achievement coincides with a mild winter and an 8% reduction in total energy usage. Furthermore, neighboring France has increased its nuclear electricity production, much of which has been exported to Germany, raising questions about the true extent of Germany's renewable energy progress.

The Closure of Everett LNG Terminal

The Everett LNG regasification terminal in Massachusetts is set to close following the cancellation of a power plant contract. This closure highlights the challenges faced by regions dependent on imported energy sources and underscores the consequences of energy policies that restrict domestic infrastructure development, such as pipeline development to transport natural gas from Appalachia to the Northeast.

Conclusion

The energy sector continues to navigate a landscape marked by technological innovation, policy debates, and environmental concerns. The interplay between oil and gas production, renewable energy adoption, and the rights of indigenous communities will undoubtedly shape the trajectory of energy policy and production in the coming years. As the industry and policymakers grapple with these issues, the importance of a balanced and informed approach to energy development becomes increasingly clear.

Read original post

Key Takeaways

Macro Voices, a financial podcast, aired a special long-form episode featuring bestselling author Lyn Alden. The episode delved into the topic of "broken energy" and the significant risks posed by current energy systems to society. Alden, with a background in engineering and finance, highlighted the excessive political influence on energy infrastructure decisions, which should ideally be determined by efficiency, cleanliness, longevity, resilience, and safety metrics.

Alden and the host, Erik Townsend, discussed the importance of energy security and how it intertwines with global safety, food security, and economic prosperity. They emphasized that energy security is not just about avoiding recessions but about ensuring sufficient energy for societal advancement. The conversation also touched on the inefficiencies of current renewable energy sources like wind and solar, the high costs associated with them, and the political forces driving energy policy.

The episode included a discussion on energy density and energy return on investment (EROI), where Alden explained that higher energy density and EROI are critical for economic development and standard of living. They also covered the topic of negative electricity prices, which result from the overproduction of energy from intermittent sources like wind and solar, leading to inefficiencies and wasted energy.

Energy Density... it's important

Townsend introduced the concept of carbon dioxide turbines as a more efficient and cost-effective alternative to traditional steam turbines for converting heat energy into electricity. This innovation could significantly reduce the cost and improve the efficiency of energy production, especially in nuclear power generation.

Best Quotes

• "We should be running energy based on what is most efficient, what is cleanest, what is most long-lasting, what is most resilient, what is safest—all these different metrics of success." - Lyn
• "The fact that they don't teach you this in school, nobody thinks about it, causes us not to recognize it." - Erik
• "When narratives overtake math as how we manage our overall energy security going forward." - Lyn
• "We've had our standard of living stolen from us by malfeasance of the US government not managing energy policy as well as they should have." - Erik

Conclusion

The Macro Voices episode with Lynn Alden provided a comprehensive analysis of the current state of energy systems, underscoring the critical role energy plays in our standard of living and the broader economy. The discussion highlighted the need for a more pragmatic and technically driven approach to energy policy, moving away from politicized and inefficient strategies.

Alden's insights into energy density and EROI offer a path forward for economic development, while Townsend's introduction of carbon dioxide turbines represents a potential breakthrough in energy conversion technology. The conversation ultimately calls for a reevaluation of energy priorities, focusing on efficiency, cost reduction, and long-term sustainability to ensure a prosperous future.

Read original post

Japan bonds (JGBs, corporates, etc) have come under tremendous pressure since the BOJ's mild tweak to yield curve control.

Group just clocked the worst 2-day slump in at least 23 years pic.twitter.com/lhkxN2BHJj

— David Ingles (@DavidInglesTV) July 31, 2023

As everyone and their mother seems to be mentally prepping for a soft landing, it seems that things are starting to go terribly awry in the world of sovereign debt. Late last week the Bank of Japan made a surprise policy change and didn't put a confident foot forward when changing the range within which they plan to employ yield curve control. Since the policy change JGBs have experienced their worst two-day slump in at least 23 years and the yen has weakened significantly against the dollar. Reaching 142.5 earlier today. In layman's terms, markets are signsling that the little confidence they had left in the Bank of Japan's ability to maintain the monetary system was just destroyed with this spastic move. This move follows their abrupt policy change around Christmas of last year, which spooked markets at the time.

In a world that runs on a hyper-connected and intertwined financial system where everything everywhere needs to be in place for everything to function properly, the Bank of Japan, the JGB market, and the yen are the canary in the coal mine that signal turbulance on the horizon. And if we pan over to the US, things aren't looking so hot on the sovereign debt side of things either.

Earlier today, Fitch downgraded the US governments sovereign debt rating to AA+ from AAA. Joining S&P which downgraded to AA+ in 2011. Leaving the US with no AAA rating to point at while declaring that it has iron clad credit. While we've learned to be wary of credit ratings coming from these ratings agencies due to their abject negligence and pandering during the lead up to the 2008 finacial crisis, it is safe to say that the US debt situation is becoming impossible to ignore. These agencies tend to be very generous with their ratings. If they're downgrading the US government, you know things have to be pretty bad. Likely much worse than a AA+ status. Just look at how much debt Treasury is looking to take out to finish out their pillaging of the American people in 2023.

The Treasury's new guidance today is that they want borrow

::checks notes::

$1.85 trillion during the second half of this year. pic.twitter.com/zIYTB38oDe

— Lyn Alden (@LynAldenContact) July 31, 2023

If my back-of-the-napkin math is in the right ballpark, we're about to increase the national debt by ~10% this year. Utter insanity. And don't look now, but oil prices have been creeping higher and look like they are about to break out. Especially when you consider the inventory draws we've seen recently.

WTI first consecutive closes over the 40-week MA since July 2022. pic.twitter.com/oGLXTy2lQL

— Larry Tentarelli, Blue Chip Daily (@LMT978) July 31, 2023

Your Uncle Marty thinks the inflation problem is still pervasive, but it will begin to become even more obvious as it will be forced to be recognized by CPI prints because of energy costs rising. Let's hope this superconducter stuff is legit.

I don't think there's anything more attractive on the planet than bitcoin hovering between $28,500 and $31,000. The tremors are beginning to rumble louder and louder, the central banks have lost control of their monetary systems and the governments have absolutely no ability to stop themselves from binging on debt, which makes for a pretty precarious situation. It's not shocking that they want you focused on aliens, climate change, and the latest round of Trump indictments. They have completely lost control of the money behind the scenes.

Final thought...

Headed to the Big Apple tomorrow. Come check out the mining mert up at PubKey tomorrow night if you're in town.

You have your place to buy Bitcoin, but have you tried River? It’s where all the Bitcoiners are now going. See why at River.com/TFTC

Sleep soundly at night knowing your bitcoin are secured by multisig.

CrowdHealth BTC is now accepting memberships starting June 1st and later. Use code TFTC during sign-up and the first 1000 members will receive a discounted membership of $99/ month for the first 6 months.

This rag was delivered to you via Ghost. If you are thinking about starting a newsletter or website and are looking for the most robust and sovereign option you should check out Ghost. For sovereign payments connect your Ghost site to Scrib.