# 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.

edwin_case
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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.