Electricity is about to become the new base currency and China figured it out
2 days ago
- #cryptocurrency-debate
- #China-energy-strategy
- #electricity-as-currency
- Historically, currency was tied to tangible assets like grain, livestock, and gold, representing direct productive output.
- In the 21st century, electricity (kWh) is emerging as the new base currency due to its essential role in automated industries, transport, and AI.
- China exemplifies this shift, leveraging cheap electricity and a strong grid to fuel its economic rise and technological dominance.
- China's strategy includes massive renewable energy investments, state-controlled electricity distribution, and preferential pricing for strategic sectors like AI.
- The country banned cryptocurrency mining to reclaim control over electricity usage, redirecting resources to priority industries.
- Blockchain technology is seen as a ledger for tracking electricity usage, but Proof of Work cryptocurrencies like Bitcoin are viewed as wasteful.
- China promotes the Digital Yuan and Blockchain-based Service Network (BSN) while rejecting energy-intensive crypto assets.
- The article suggests that global investment should focus on electricity generation and storage rather than speculative crypto assets.