Former U.S. presidential candidate John F. Kennedy refutes the fallacy of Bitcoin mining energy consumption in the British magazine "The Economist".

Former U.S. presidential candidate Robert F. Kennedy Jr. recently disputed an article published by the British weekly magazine "The Economist," which highlighted the environmental impact of Bitcoin mining in Texas. Kennedy later responded to "The Economist" in a letter, refuting the claims made in the article and also providing a series of educational insights.

Mining only competes for cheap electricity, not brainless energy consumption

In his letter, Xiao Gangnadi began by mentioning that The Economist continued the fallacy of Bitcoin mining energy consumption and jokingly called it "ignoring the facts." This was sparked by an article published by The Economist in August 2024, which emphasized that "Bitcoin miners in Texas, USA, continue to consume increasing amounts of electricity, putting immense pressure on the local power grid and having a negative impact on the environment." This statement led Xiao Gangnadi to provide a series of educational insights in response to The Economist.

Xiao Gangnadi first acknowledged and stated, "Yes, the power grid is currently under increasing pressure due to the significant electricity consumption required by manufacturing plants, electric vehicles, and data centers, making it easy for people to associate Bitcoin mining with a large source of electricity consumption." However, he pointed out that unlike data centers that may purchase electricity regardless of price, "Bitcoin mining is different, as they only operate when electricity is cheap and abundant." He added that "whenever there is a shortage of electricity or a surge in prices, the electricity consumption will decrease within seconds."

Pointing out the reasons for opposition from the traditional energy industry

The letter mentioned that in Texas, USA, extreme weather conditions like heatwaves often lead to surges in electricity prices, causing Bitcoin miners to naturally shut down their machines. However, when electricity prices are low, the machines will start operating, providing a stable income for local energy suppliers. Xiao Gangnadi emphasized, "What's wrong with having a group of stable buyers who do not increase their electricity consumption during peak price periods? This is quite ideal for promoting the construction of renewable energy while ensuring stable electricity supply for local residents, hospitals, and other public facilities!"

However, the letter also pointed out that the action of Bitcoin miners to "stabilize the electricity supply of the power grid" has led them to directly compete with "natural gas power plants that only operate during periods of high electricity demand." Xiao Gangnadi said, "It is not surprising that those who advocate for Texas to build more 'peak' power plants would oppose people like Bitcoin miners who can help stabilize electricity supply."

Founder of environmental conservation company CH4 Capital, Daniel Batten, endorsed Xiao Gangnadi's argument in support of Bitcoin miners and stated that his views are supported by relevant industry experts and existing research on the relationship between Bitcoin and the power grid.