Nuclear Bitcoin Fixes This
Nuclear Bitcoin Fixes This
event details—I'll love you if you bring a sign and friends, overview of Bitcoin and nuclear energy in Austin, Tejas, and additional resources
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I will never share your email with anyone. My intention is not to use this list other than for organizing around the intersection of these two issues—either hosting future meetups or for a direct call-to-action (either to fight back or preferably go on the offensive if we secure an opening).
Hi Friends,
My intentions for this email:
Share details and an overview of my aspirations for the event on Thursday
Provide a summary and relevant links at the intersection of Bitcoin and Nuclear Energy
The Event
The meet up will occur this Thursday, October 7th, from 6-8pm+ at Native Hostel. They have graciously allowed us to use their space for free. I told them that we would make good use of their bar while we’re there to reciprocate. If you did not receive a calendar invite, this link should work—or just reply to this email and I’ll add you.
My intention with this event is to create connections between Bitcoiners and nuclear energy advocates. This is a side-project that I picked up after being introduced to friends at the advocacy organization Stand Up For Nuclear.
They have requested that we take a photo of our meetup so they can publish it on their feeds and show that there’s support for nuclear in Austin, Texas.
To that end, wear Bitcoin or Nuclear apparel, invite a couple friends, and—if you’re a real champion—bring a little homemade sign that is pro-Nuclear or Nuclear Bitcoin. I will buy the 3 people with the best signs a drink or CashApp them $10 of BTC. [If I didn’t work at a bootstrapped startup, I’d offer more :’)]
This will be a casual meet up and everyone is welcome to attend. If you know anyone who wants to sponsor the event (or a follow-up), they’re more than welcome to reach out at grantdever at gmail dot com.
Overview of Nuclear Energy and Bitcoin in Austin
Nuclear energy has high upfront capital costs but overall the supply chain is comparatively clean (you need to mine raw materials, transport, and manufacture to expand any form of energy supply) and produces a consistent, base load abundance of low emissions energy.
A robust, prosperous society requires a constant stream of energy (hospitals, businesses, homes, etc need to know they'll have power). The biggest problem with renewables right now (solar, wind in particular) is that their energy output is volatile and vulnerable to unexpected shocks.
During the freeze in Austin last February, the output of wind dropped to ~13% of normal, while nuclear was at 84% (it had a minor issue). This sharp drop in output by wind power could, in theory, be relieved via batteries. But it won’t be any time soon. It would be fundamentally irresponsible to make the grid fully reliant on renewables.
What happens when the batteries run out if the cold snap continues? We don’t want to find out. Trust me.
Since we believe that an excess of emissions may bring catastrophic risks,—or even just decrease air quality and kill people through increased environmental health issues— energy is vital to economic growth, and hospitals, homes, schools, etc should always have power, we support nuclear energy.
In many states, regressive activists have been pushing the government to close their nuclear plants. Some plants need routine maintenance but these plants are not a threat to their communities—quite the opposite. These anti-nuclear campaigns are fueled by a mix of cold war era hysteria, ideological fever dreams, and [most likely] the largesse of fossil fuel companies, or investors with certain leveraged financial positions. When nuclear plants are decommissioned, high paying union jobs are destroyed, towns are ruined, and the demand for energy is filled by fossil fuels and coal, not renewables.
Europe is currently experiencing a sharp rise in energy costs and increased dependency on Russian natural gas, mostly because they fragilized their grid by decomissioning their nuclear plants and attempted to replace that energy supply with wind and solar. Energy prices have increased by 14% over the last year in Germany and they’re experiencing a 29 year high for inflation.
My point is not to demonize fossil fuels. I understand how important they are for society. I just am trying to arm y’all with arguments against those who oppose nuclear energy in the name of reducing emissions. Likewise, just because we appreciate a society where we can fly in planes, drive cars, and heat our homes, doesn’t mean that these pro-fossil fuel lobbying efforts—whether conscious or not—are not harmful to our society. Agency problems rule everything around us—there are ways that this reality is at least good for Bitcoin but I’ll save that for another time.
New York City has already experienced rolling blackouts and seen its consumption of fossil fuels rise since it decommissioned Indian Point. (Graph is of New York State but it’s true for the city as well).
Talking points about ‘replacing fossil fuels’ and nuclear are essentially a call for austerity. We want to expand the supply of energy! Our ‘leaders’ will ask us plebs to turn off our air conditioning during a heat wave, while the empty houses of foreign real estate speculators are blasted with air conditioning. When our fiat oligarchs talk about sacrifices, they mean you and I. Never forget that.
Bitcoin can help solve this. To mine Bitcoin, you mostly need two things:
1. ASIC Miners
2. Energy
Bitcoin, especially at a high price (and we’re going to the moon), radically changes the market for energy. When energy is created, it needs to be used or stored. Existing battery technology is insufficient. We’re bad at storing energy. Bitcoin miners come to a remote area with excess energy (or additional potential output), that would otherwise be wasted, and purchase it for cheap. This allows the energy company to become more profitable and Bitcoiners get a deal on energy. Win-win.
Our goal is to create connections between miners and nuclear plants to help the plants to become more profitable. Miners have told me that the biggest issue is that making contracts is burdensome and they have tons of options for energy sources. We have already created connections between Bitcoin miners and leadership at the South Texas Project—a nuclear plant near Bay City, Texas, which is partially owned by the cities of San Antonio (40%) and Austin (16%). Our hope is that we can decrease transaction costs and reduce the friction to expanding the amount of nuclear Bitcoin mining in Texas.
But the real first-order synergy between Bitcoin and nuclear is this:
Nuclear provides a consistent base load of energy and Bitcoin miners can match their demand to the supply of nuclear. Miners and the nuclear plant can negotiate a contract where the miners get a discount on energy, say 10% off from the normal rate. And in exchange, when we have a cold snap like in February, the miners will temporarily cease their operations. If the miners helped plants, like STP, to expand their capacity and had these contracts, then when our other sources lose output during a shock—all things equal—our grid will have more energy flowing through it than it would've in a world without nuclear Bitcoin. These dynamics could radically reduce the chance that Austin ever has a blackout again.
Additional Resources:
The Complete Case for Nuclear Energy by Environmental Progress—this one is image heavy, easy to flip through. Opens up by sharing some information about the disparity in emissions and energy costs between France (invested in maintaining its nuclear fleet) and Germany (closed it down, now reliant on Russian oil after fear-mongering about the collapse of NATO).
Retrospective analysis by the UN about the costs of the Chernobyl disaster:
Retrospective analysis by the UN about the costs of the Fukushima disaster:
If you want a more technical analysis and answers to FAQ about Nuclear—from costs to nuclear waste to the basics of radiation, check out whatisnuclear.com. This website was created by former and current nuclear engineers to address misconceptions.
Bitcoin and Nuclear articles:
Bitcoin and Baseload: How ‘HODL’ing Nuclear Will Deliver The Future by Madison Czerwinski
Nuclear Power Plants: Our Industrial Cathedrals by Emmet Penney
Nuclear power is an untapped opportunity for bitcoin mining by Lili Rhodes
Bitcoin Mining Firm Compass Inks Deal With Nuclear Microreactor Company Oklo by Nate DiCamillo
If you have any critical questions, persuasive concerns, or critiques of these sources, please reply and let me know! I am always looking to refine my understanding and identify bad or misleading talking points. With my present understanding, the risks and costs of not aggressively pursuing nuclear energy seem to vastly outweigh the risks and costs of not doing so.
Share with your friends and see you Thursday:
I’d love to hear from any and all of you, please feel free to reach out @grantadever on Twitter and Telegram.
Your Friend,
Grant