Bitcoin mining: A solution to Pakistan's new energy problem?

[313ghazi]

After decades of shortfall, Pakistan is facing a new energy conundrum. We are producing a lot more energy than we need but without a distribution and grid system, we have no way to make use of this energy.

I know some of you might have lost this one in the list of problems such as circular debt, IPP power contracts, and the frequent changes and discussions about energy tariffs. Others might even find it hard to believe that we’re producing more than we need as the excruciating memory of load shedding in summers would have cut too deep.

However one may feel about it, that Pakistan is now producing more power than it needs is a fact. According to the Special Assistant to the Prime Minister on Power Tabish Gauhar, Pakistan may already have 50 per cent more capacity than demand.

And even though Pakistan is unable to use the excess it is producing, adding further insult to injury, the government has to pay for the energy even if it is not being used.

How we got ourselves in this situation is a topic for a different day. Today, I want to focus on a unique solution to this dilemma and present a possible way to cut our losses given the reality we face.

Bitcoin mining
If Pakistan uses this energy for bitcoin mining using the latest S19 Pro Antminer (assuming 10,000MW of excess energy available at a cost of $0.12 per kW/hour), it can generate $35 billion worth of Bitcoin per year at current valuations.

Simply put, this means we can pay off our external debt in two years.

If JP Morgan's forecast of Bitcoin reaching $146,000 turns out to be true, Pakistan will make around $110bn from this.

And don’t even ask me what we will make if Mike Novogratz is correct – it's mind boggling.

At this stage most crypto critics would be thinking, what happens if Bitcoin turns out to be worth zero? And that of course is a valid question here, given the debate surrounding the future of crypto currencies.

The good news is, even if Bitcoin loses all its worth as some detractors have predicted, Pakistan would not be exacerbating its losses since the government is already paying for the excess energy – whether it is being used or not.

So whatever income Pakistan is able to generate from this excess energy can perhaps be used to put the distribution network in place to eventually utilise it efficiently.


I know naysayers will remind me that our biggest recent technological innovation is allowing people to open digital accounts and we are still in celebration mode about that.

But I am hopeful. After all, Minister of Science and Technology Fawad Chahudhry has allowed the industrial usage of Cannabis and is also making a space museum in Islamabad.

Why not mine Bitcoin?

Bitcoin mining: A solution to Pakistan's new energy problem?

We're producing a lot more energy than we need but without a distribution system, there's no way to make use of the excess.

www.dawn.com

 

[Norwegian]

After decades of shortfall, Pakistan is facing a new energy conundrum. We are producing a lot more energy than we need but without a distribution and grid system, we have no way to make use of this energy.

I know some of you might have lost this one in the list of problems such as circular debt, IPP power contracts, and the frequent changes and discussions about energy tariffs. Others might even find it hard to believe that we’re producing more than we need as the excruciating memory of load shedding in summers would have cut too deep.

However one may feel about it, that Pakistan is now producing more power than it needs is a fact. According to the Special Assistant to the Prime Minister on Power Tabish Gauhar, Pakistan may already have 50 per cent more capacity than demand.

And even though Pakistan is unable to use the excess it is producing, adding further insult to injury, the government has to pay for the energy even if it is not being used.

How we got ourselves in this situation is a topic for a different day. Today, I want to focus on a unique solution to this dilemma and present a possible way to cut our losses given the reality we face.

Bitcoin mining
If Pakistan uses this energy for bitcoin mining using the latest S19 Pro Antminer (assuming 10,000MW of excess energy available at a cost of $0.12 per kW/hour), it can generate $35 billion worth of Bitcoin per year at current valuations.

Simply put, this means we can pay off our external debt in two years.

If JP Morgan's forecast of Bitcoin reaching $146,000 turns out to be true, Pakistan will make around $110bn from this.

And don’t even ask me what we will make if Mike Novogratz is correct – it's mind boggling.

At this stage most crypto critics would be thinking, what happens if Bitcoin turns out to be worth zero? And that of course is a valid question here, given the debate surrounding the future of crypto currencies.

The good news is, even if Bitcoin loses all its worth as some detractors have predicted, Pakistan would not be exacerbating its losses since the government is already paying for the excess energy – whether it is being used or not.

So whatever income Pakistan is able to generate from this excess energy can perhaps be used to put the distribution network in place to eventually utilise it efficiently.


I know naysayers will remind me that our biggest recent technological innovation is allowing people to open digital accounts and we are still in celebration mode about that.

But I am hopeful. After all, Minister of Science and Technology Fawad Chahudhry has allowed the industrial usage of Cannabis and is also making a space museum in Islamabad.

Why not mine Bitcoin?

Bitcoin mining: A solution to Pakistan's new energy problem?

We're producing a lot more energy than we need but without a distribution system, there's no way to make use of the excess.

www.dawn.com

Old article and completely bullshit

 

[Sayfullah]

I see a big potential for bitcoin mining in Pakistans cold north. We can buy wholesale military grade GPU’s from China and use them and make billions a year.

 

[Norwegian]

I see a big potential for bitcoin mining in Pakistans cold north. We can buy wholesale military grade GPU’s from China and use them and make billions a year.

Stop living in dreams. Pakistan can hardly import fuel for its own electricity consumption. How will it pay for bitcoin mining?

 

[Darth Vader]

Lol facepalm
Majority of antminers get phased out in few months for Pakistan to actually earn some proper $$$$ you need proper investment
There is already a silicon shortage i had to wait 4 to 5 months just to get one GPU.
And still waiting for almost one year to upgrade to next.

You need proper infrastructure high speed Internet, enterprise level cooling solution as it gets extremely hot in Pakistan you cant just compare a small private project and crypto project which can generate billions in very short time with very limited investment.

Also BTC above 1K is just bubble,
But investing in blockchain tech can actually help and develop Pakistani money system.

Alot of people think crypto is just bad and nothing is traced in theory yes when you move between 2 wallets it is but Majority of people use online wallets than use exchanges to transfer buy sell funds which keep records.

There are tons of new projects worth investing cardano , helium being few of these
Helium specially as it provides coverage like wifi peer 2 peer network InshAllah will be starting to setup these devices with sensors which will actually provide benefit to local communities

 

[AZADPAKISTAN2009]

The correct term is "Cryoto Currency Mining"
Allowing Crypto Transactions happen using your power grid

Bit Coin is just 1 of the Crypto Currency

If Pakistan has surplus

• We are better off to offer Electricity based stoves , and have electric buses

Doable Idea perhaps not 35 Billion Dollar worth but may be worth certain % of that figure
Provided you can't use the extra electricity sure use it for Crypto Currency Transaction processing

 

[blueazure]

Old article and completely bullshit

i agree

no sane person would mine BTC at the tariffs being offered in pakistan . doesnt make financial sense

and btc price is crashing anyway so only the most efficient miners would survive the next bear mkt

 

[313ghazi]

I just realised this is quite an old article.

i agree

no sane person would mine BTC at the tariffs being offered in pakistan . doesnt make financial sense

and btc price is crashing anyway so only the most efficient miners would survive the next bear mkt

You're our resident expert, so i'll go with what you think.

 

[JackTheRipper]

I see a big potential for bitcoin mining in Pakistans cold north. We can buy wholesale military grade GPU’s from China and use them and make billions a year.

Even China is trying to get rid of cryptocurrencies, except state owned,
Chinese state owned crypto will be without risk of up/down value,

Majority of Crypto can Bank-crypt country due high risk of up/down value,
And mining can create shortage of Electricity..

 

[Mujahid Memon]

I see a big potential for bitcoin mining in Pakistans cold north. We can buy wholesale military grade GPU’s from China and use them and make billions a year.

What is a "military grade GPU"?

 

[TNT]

BTC mining is useless now. I would suggest other currencies, currently helium mining seems great for future, it also requires less power.

 

[FuturePAF]

Even China is trying to get rid of cryptocurrencies, except state owned,
Chinese state owned crypto will be without risk of up/down value,

Majority of Crypto can Bank-crypt country due high risk of up/down value,
And mining can create shortage of Electricity..

Cryptocurrencies are a Trojan Horse, and IMHO, should be avoided, especially in developing countries. It make money laundering easier and can drain countries of hard currency. Better for countries to keep hard assets like Gold and Silver as well as maximize the productivity of farm land and the labor force.

 

[blueazure]

Cryptocurrencies are a Trojan Horse, and IMHO, should be avoided, especially in developing countries. It make money laundering easier and can drain countries of hard currency. Better for countries to keep hard assets like Gold and Silver as well as maximize the productivity of farm land and the labor force.

that is a lame and strawman argument

1. any one can use crypto to hedge their savings against a falling national currency ( stable coins )

2. use crypto to get access to foreign stocks ( FTX tokenized stocks )

3. trade and make profit by betting on the volatility of crypto price movements



crypto has changed people's life , it certainly changed mine

 

[Type59]

Mining is not labour intensive, soo only a minority will reap rewards.

Also will create localised blackouts especially in summer.