It’s bonkers to pay farmers not to grow food, right? Wrong. It’s capitalist economics.
Now that goes for crypto too. Trump and his buddies have the hots for crypto, but Texan republicans are really feeling the heat (Economist, 17 September). Why? Because Texas has an isolated and creaky power grid which can’t cope with crypto mining demands, so now the power company is paying these miners not to mine during summer surge pricing peaks. When prices were high in August 2023, Riot Platforms, the biggest bitcoin mining company, earned $8.6m for mining, and over $30m from the grid for not mining. So they’re cashing in on the state’s energy crisis.
Still think capitalism is the best of all possible systems?