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by whowouldathunk 3094 days ago
The market is ignoring externalities.

https://www.newyorker.com/cartoon/a16995

2 comments

I think the best approach to internalizing those externalities are to build it into the cost of electricity. If electricity is too cheap, then it’s too cheap for everything, not just for Bitcoin mining.
None of the things my grandparent mentioned are externalities.

The cost of energy consumed is directly borne by the people mining the bitcoins. The costs of the power gluts should be being directly borne by the customers (I'm pretty sure it is in Germany, I don't know about California).

The energy market is distorted by government interference, sure, but the costs are clear and (unless the regulators are doing something really stupid) being borne by parties with skin in the game.

The cost of electricity is artificially low because it doesn't include the cost of the associated pollution.
Probably so, but that doesn’t affect Bitcoin mining any more than any other usage of electricity.