The Economics of AI & Bitcoin Mining with Daniel Roberts - WBD729

Daniel Roberts is the co-founder of Iris Energy. In this
interview, we discuss misconceptions about energy consumption in
Bitcoin mining and the resultant impact on the value and
perception of Bitcoin. We also talk about Iris Energy's
commitment to using 100% renewable energy, Bitcoin mining
stabilizing the energy grid in Texas, the downside protection of
low-cost Bitcoin mining, the challenges of scaling Bitcoin
mining, and the correlation between Bitcoin mining and AI.


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Iris Energy is Australia’s largest homegrown Bitcoin miner, and
full disclosure, the lead sponsor of What Bitcoin Did. It is an
unabashed advocate of decarbonisation, with a commitment to power
its operations using 100% renewable energy. It is one of the
market leaders in targeting under-utilised renewable energy
sources. And, whilst its core business is Bitcoin mining, the
company is expanding its next-generation data centres to target
the generative AI market.


Despite the proven positive contribution to supporting energy
grids, mitigating climate change and supporting communities with
well-paying professional jobs, Bitcoin mining FUD is still
affecting the perception of the industry within influential
groups. With Iris Energy’s co-founder Daniel Roberts, we discuss
the common misconceptions of Bitcoin mining’s energy consumption,
and why these misunderstandings still gain traction in the media.


We talked about the challenges of scaling Bitcoin mining: mining
companies like Iris have to manage the physical limitations of
increasing power consumption and the difficulty of developing
large-scale energy infrastructure. They also have to hedge
against price volatility. However, Daniel explains how low-cost
miners have a unique downside protection that further
incentivises the drive to exploit cheap energy sources.


The podcast also covers Iris’s expansion into supporting demand
for AI computation. Daniel explains the correlation between the
needs for Bitcoin mining and AI, and how their approach is not
solely focused on Bitcoin mining but rather on building
power-dense data centres optimized for various digital demand
drivers. This means the competitive advantage in the industry has
shifted from chip manufacturers to those who can build
large-scale infrastructure businesses.


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Show notes:
https://www.whatbitcoindid.com/podcast/the-economics-of-ai-bitcoin-mining


This episode’s sponsors:
Iris Energy - Bitcoin Mining. Done Sustainably
Bitcasino - The Future of Gaming is here
Ledger - State of the art Bitcoin hardware wallet
Wasabi Wallet - Privacy by default
Unchained - Secure your bitcoin with confidence
OrangePillApp - Stack Friends Who Stack Sats