MX3 Atom Blockchain Smart Meter commences POC with Green Crypto-Miners
We recently installed a simple proof-of-concept (POC) that will enable the team to test MX3 Atoms’ green energy monitoring, usage, micro-billing, and payment processing capabilities.
Unlike conventional smart meters, MX3 Atom records events on a blockchain, so it’s not possible to tamper with the data. This will improve accuracy and reduce fraud. It is intended for bitcoin miners that want to convert green energy into green bitcoin (BTC). MX3 Atom converts funds received from miners (paid in BTC) into GBP (or any local currency) for energy consumed. Funds are then transferred directly to the bank accounts of energy producers/providers. All billing and invoicing are seamlessly taken care of. A Non-Fungible Token (NFT) in the form of an immutable tamper-resistant document is created which proves that each bitcoin mined has been produced with 100% green energy.
Our ultimate aim is to help bitcoin miners reduce their carbon footprint and develop economic models that make bitcoin mining viable in the UK. The reason why bitcoin miners have typically not been attracted to the UK is that the average wholesale price of electricity is much higher compared to many other countries. Going to where the cheapest source of electricity can be found is critical because over 80% of a bitcoin miner’s operating costs are energy-related.
We believe that the UK economy would benefit from establishing a bitcoin mining industry that runs on renewable energy. Not only would it help balance the grid, but also encourage the financing and construction of more renewable power plants. More power plants would create jobs, help with the transition from fossil fuels, and generate much-needed taxable income for the Treasury.
The high costs of energy in the UK are due to market and infrastructure inefficiencies — not scarcity. The UK has an abundance of renewable energy from wind, solar, and nuclear to biomass, tidal, hydro, and geothermal. Every year billions of pounds worth of clean energy are wasted as a result of stranded resources and curtailment. The former is when the source of energy is too far away from where it is needed and the latter is when intermittent renewable energy sources such as wind and solar produce more energy than the grid can absorb. When this happens power plants are encouraged to reduce their output or power down. In return, they are financially compensated. These curtailment subsidies are ultimately paid by businesses and retail customers in the form of a stealth tax that is added to electricity bills. One obvious way to avoid curtailment is to use batteries to store excess energy during periods of high yield and low demand. The problem is that energy storage systems continue to be so expensive that they eat into margins and therefore significantly reduce return on investment.
Selling excess energy to bitcoin miners does the opposite. It increases margins and ROI without the need for additional Capex by providing a way to generate free money! Unlike in most other countries where electricity is much cheaper, miners need a way to sell bitcoin at a premium to off-set the higher energy costs.
Our proposed solution is to find buyers who might be willing to pay a premium for green bitcoin. Our hunch (this needs further investigation) is that institutional ESG investors will be willing to pay a premium for virgin clean, green bitcoins that have been mined in Britain using renewable energy. We hypothesise that when the next bull cycle arrives institutional interest will increase. This is because even professional investors are not immune to FOMO, so if they see that competing funds are able to obtain superior beta from buying BTC, they will probably feel pressure to do the same. The problem is that their ESG mandate may prevent them from buying it either OTC or directly from an exchange. In other words paying a premium for green bitcoins may become the only way they can hold BTC on their balance sheet.
A final compelling factor in favour of attracting bitcoin miners to the UK is national interest. If BTC is “digital gold” then it will become highly prized by state actors. Nation states have always clamoured to obtain as much gold as possible because it is the best type of collateral and therefore symbolises the strength of a nation’s economy. The problem with gold is that extracting it is bad for the environment and unlike BTC it is difficult to store and transport. Having a domestic source of BTC production in the UK would, therefore, be a wise move in my opinion.
As a side note, it is important to state that it is not our aim to produce non-fungible BTC that can be tracked on the blockchain ad infinitum. The NFT will be single purpose and will only be used on a one-time basis to provide evidence that the virgin coins have been mined with 100% clean energy. Once sold via the secondary market, each satoshi will be mixed and become non-fungible.
We are seeking strategic investors and partners, so if you are an ESG investor, bitcoin miner or green energy producer in the UK please get in touch. We are especially interested in establishing private wire PPAs with non-utility power plants.
For further details please view our website: www.mx3cs.com, view a short explainer video: https://bit.ly/mx3atomPOC, or hear from our founder and CEO: https://bit.ly/greenbtcUK
