Could bitcoin be an effective buffer in the electricity market in a state of hyperbitcoinisation? - calculations need checking - may contain errors. Some assumptions were made.
2 January 2022
Could bitcoin be an effective buffer in the electricity market in a state of hyperbitcoinisation?
1) Current bitcoin reward per day:
6.25 x (6 x 24) x $16000 = $14,400,000/day
(6.25 blocks every 10minutes for one day multiplied by the bitcoin price)
2) Possible bitcoin reward in the future:
Assuming same proportional bitcoin reward and a bitcoin price of $10,000,000 (in a world of hyperbitcoinisation):
10,000,000/16000 x 14,400,000 = $9,000,000,000/day (9 billion dollars per day)
3) Total electricity expenditure per day currently:
82 exajoules per year
44 billion per exajoule
(https://www.wolframalpha.com/input?i=cost+of+one+exajoule+of+electricity)
82 x 44,000,000,000 / 365 = $9,884,931,506 (9.8 Billion dollars per day)
4) Total new gold production per day:
3000 tonnes of gold per year
https://www.statista.com/statistics/238414/global-gold-production-since-2005/
3000 tonnes of gold x $53 million per tonne / 365 = 435,000,000 (0.4 Billion dollars per day)
Conclusion:
Even if the block reward is substantially decreased compared to current values, if bitcoin becomes the predominant money, it may well provide extra value in stabilising grids.