I had an interesting tweet fired over to me the other day from my fellow editor and friend, Boaz Shoshan.
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| Sam Volkering | 27 July 2020 |
Cow farts and crypto
The Intel paradox Intel failed to keep up with production schedules. Then Intel shared with investors an idea about outsourcing production… but its stock went down. Why did the market have such a reaction to the news? And why are Intel's competitors trending upwards?
| | In today's Exponential Investor…
- Smelly business
- Capturing the moonlight
- Intersecting huge trends could equal profit
I had an interesting tweet fired over to me the other day from my fellow editor and friend, Boaz Shoshan.
It was a picture of what looked very much like a generator of some sort in the middle of a field.
The caption just said, "This is a box that turns methane into bitcoin."
I know that all sounds a little far-fetched. Take a look at the tweet yourself:
Whether it's true or not, I don't know. But there's one thing I do know for certain. There's a lot of conjecture about the energy costs it takes to create, to mine, bitcoin.
And for as long as I've been involved in bitcoin – about a decade now – it's always been something the critics have used as an excuse as to the environmental cost of crypto.
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Inventive ways to power the world What I found truly fascinating was some of the thread off that tweet. This one in particular caught my attention, from the original poster:
| Currently costs approx 5.6 megawatt-days to mine 1 BTC using most efficient chips. Convert to methane energy (assume 25% nat gas generator efficiency) = 51000 m^3 methane. Cattle produce 0.2 m^3 / d methane. Takes 255,000 cows to produce 1 BTC/day.
| | What I love about this isn't the fact we're talking about cow farts to mine bitcoin. But the fact there are people out there even thinking about these things.
Even better, there are those who are trying to put it into practice.
Without that kind of dedication to experimentation, trials, tests, pilot projects and development, we don't get anywhere with any kind of technology.
It's this constant desire by humanity to push the edges of science and technology that gets us moving forward. And when it comes to energy, it's an area with constant innovation and development.
This is why we are going through a great energy transition right now. And as you heard last week from Kit Winder, it could become the biggest investment opportunity of the decade, perhaps the century… perhaps ever.
Big Green is the new Big Oil in this sense. And that's why today Kit and editor of Exponential Energy Fortunes James Allen are releasing a special six-day series all about it, interviewing some of the most important names in energy and technology. And yes, I'm in there too. But if you want to get access to this and all the information contained within, you need to be registered. It's completely free to attend as an Exponential Investor reader, you just have to click here to get your place if you already haven't.
Without people trying to harness the farts of cows, or trying to turn windows into solar panels, or trying to (this is as true as the cow fart thing) capture solar energy from moonlight, we end up in a world where we have a guy that still puts oil in the street lamps each night.
Progress is something to easily take for granted. And then occasionally people sit back, look at the world around them and try to figure out how we got where we are. That's not a negative thing, but a positive thing.
Do you even think there would be a Black Lives Matter movement without the technology enabling masses of people to organise, connect and deliver their message? Do you think that we'd ever have a viable alternative financial system with new kinds of decentralised finance if it wasn't for the genius of someone to challenge centralised authoritarian power systems?
Do you think we'd see triple-digit growth in electric car sales and the Big Green energy transition without pioneers to look at how we can help the world function without killing it?
The intersection is where greatness exists The old saying "there are two certainties in life: death and taxes" isn't so accurate any more. For a start, there's a third: technological progress. And quite possibly in a decentralised financial world, maybe there's no taxes either (at least not in their current form).
What's blatantly obvious though is that throughout history and throughout our future, this progress comes with more and more opportunities to invest and grow your wealth alongside.
You can be one of those people that sits back down the track and wonders at the marvels of the world. Or you can be the ones who saw what was happening and got involved, investing and riding those world changes as they took place.
That's what's happening in energy markets right now. It's also what's happening in cryptocurrency markets right now too. There are even crossovers between the two that utilise the powers of decentralised, distributed networks of cryptocurrency and apply it to things like energy trading and community grids.
Some of the projects in this space include the market-leading Power Ledger and its POWR tokens and WePower and its WPR tokens.
These are just two examples of where two huge world-changing investment trends like Big Green and crypto can intersect and open up new areas for investors.
These are the sorts of things you need to be considering when figuring out how to play this. There are more traditional routes, sure. There are plenty of stocks that can deliver great returns to a portfolio.
But there are newer, more out-of-the-box ways to play it as well. And I see crypto markets being one of those avenues. There's so much going on in the crypto space right now, that it's something I'm going to focus on in the coming weeks as well.
It's far more than the price of bitcoin – far more than just bitcoin anyway. Until you really understand the innovation and development going on, you'll never really understand how to play the crypto markets properly.
It would be thinking capturing cow farts is the answer to the world's energy problems. You'd really miss the bigger picture.
So make sure to keep an eye out as I dive deeper to expose what's really taking place in crypto right now and how you can play the market smartly.
Also if you have questions about crypto that you think are worth covering in Exponential Investor, write in and let me know. If you're thinking it, good chances are thousands of others are thinking it too – sam@southbankresearch.com.
Regards,

Sam Volkering Editor, Exponential Investor
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