This is a useful reminder that the universe is transactional. You are always exchanging some resource for another resource. The key to remember is to get the maximum viable resources in the exchange.
Very interesting history of the Volta dam. Thanks for sharing.
Ultimately the answer comes down to 3 things: do you think the invisible hands works better than the alternative, do you think Bitcoin is a better currency and even if you don't for either of the above then what would you have Ethiopia do?
Invisible Hand:
If ones idea of creating jobs is Africans doing back breaking work swinging a pick in a mine all day, clogging their lungs or in an aluminum factory, then yes, Bitcoin mining won't provide that. But I think both of us want high skilled jobs coming to Africa. The kind of IT techs that manage bitcoin mining rigs. And, here's where the invisible hand comes in, who knows what that could cause... New skills, new startups, Ethiopian govt learns to price their electric better, which creates better environment to build power generation for the indefinite time Bitcoin mining is there, Ethiopia generates more income they can save for a rainy day, which allows them to plan a few years ahead, etc. Nothing measurable. But that's how the invisible hand works.
Further, if there is under priced electricity in Ethiopia then the invisible hand should solve that. If, as you point out, the electric company is selling power below cost they should stop doing that. That's not an issue with Bitcoin. Bitcoin arbitrages energy prices. It would be very expensive to send Ethiopian electricity to China. But it's cheap to turn Ethiopian electricity into Bitcoin and send the Bitcoin to China. This saves a lot of infrastructure costs. Environmentalists should be jumping for joy for all the conservancies that don't have high voltage transmission lines going through them.
Bitcoin is better:
Is Bitcoin an improvement on Gold? And are other cryptocurrencies better than fiat currency? Not better in all respects but in many. Saying it's not better is like someone in 1899 saying horses are faster than cars and always will be.
Bitcoin costs money and energy yes, but dollars cost lives in war. It causes inflation. Proof of Work is a much preferable way to secure a currency than Proof of Violence (that the USD is worth something is because the US govt says it is and they'll shoot you if you try to make more of it or disagree with them).
Based on the comment in the last article that bitcoin is privacy focused, I surmise that you have a wonderful rabbit hole your inquisitive mind can go down to learn what Bitcoin actually is. I envy all the great insights ahead of you down that rabbit hole.
The alternative?
Let's say Ethiopia should discourage Bitcoin mining, what's your solution? Ban it? What kind of precedent does that set? How would it ever enforce that?
I'm 100% open to changing my mind if I hear compelling logic on one of the first two points + the third point.
This is a useful reminder that the universe is transactional. You are always exchanging some resource for another resource. The key to remember is to get the maximum viable resources in the exchange.
Very interesting history of the Volta dam. Thanks for sharing.
Ultimately the answer comes down to 3 things: do you think the invisible hands works better than the alternative, do you think Bitcoin is a better currency and even if you don't for either of the above then what would you have Ethiopia do?
Invisible Hand:
If ones idea of creating jobs is Africans doing back breaking work swinging a pick in a mine all day, clogging their lungs or in an aluminum factory, then yes, Bitcoin mining won't provide that. But I think both of us want high skilled jobs coming to Africa. The kind of IT techs that manage bitcoin mining rigs. And, here's where the invisible hand comes in, who knows what that could cause... New skills, new startups, Ethiopian govt learns to price their electric better, which creates better environment to build power generation for the indefinite time Bitcoin mining is there, Ethiopia generates more income they can save for a rainy day, which allows them to plan a few years ahead, etc. Nothing measurable. But that's how the invisible hand works.
Further, if there is under priced electricity in Ethiopia then the invisible hand should solve that. If, as you point out, the electric company is selling power below cost they should stop doing that. That's not an issue with Bitcoin. Bitcoin arbitrages energy prices. It would be very expensive to send Ethiopian electricity to China. But it's cheap to turn Ethiopian electricity into Bitcoin and send the Bitcoin to China. This saves a lot of infrastructure costs. Environmentalists should be jumping for joy for all the conservancies that don't have high voltage transmission lines going through them.
Bitcoin is better:
Is Bitcoin an improvement on Gold? And are other cryptocurrencies better than fiat currency? Not better in all respects but in many. Saying it's not better is like someone in 1899 saying horses are faster than cars and always will be.
Bitcoin costs money and energy yes, but dollars cost lives in war. It causes inflation. Proof of Work is a much preferable way to secure a currency than Proof of Violence (that the USD is worth something is because the US govt says it is and they'll shoot you if you try to make more of it or disagree with them).
Based on the comment in the last article that bitcoin is privacy focused, I surmise that you have a wonderful rabbit hole your inquisitive mind can go down to learn what Bitcoin actually is. I envy all the great insights ahead of you down that rabbit hole.
The alternative?
Let's say Ethiopia should discourage Bitcoin mining, what's your solution? Ban it? What kind of precedent does that set? How would it ever enforce that?
I'm 100% open to changing my mind if I hear compelling logic on one of the first two points + the third point.
Love it! Can't wait for tonight's bedtime reading.