The Capitalism Strain

 


Researchers with the Massachusetts Institute of Technology (MIT) and the Pontifical Catholic University of Chile have developed an insulating material which allows a device to achieve a cooling differential of up to 23 degrees Fahrenheit using no electricity and no moving parts. 23 degrees cooling may not be sufficient on its own in all applications, but it will certainly increase the efficiency of existing devices by assisting them in not working as hard and thereby using less electricity. The useful attributes of the new insulator will help mitigate the climate warming effects of increased use of air conditioning and refrigeration, which in turn can lead to increased climate warming, and on and on.

 


Heating and cooling of indoor spaces accounts for between 40 and 60 percent of energy use worldwide, depending on location and also on who is doing the studies and how. It’s enough to know that indoor climate control is the single biggest factor in energy use around the world. Heating is the larger portion of the 40 to 60 percent of energy use, but that could flip by mid-century as the warming climate increases demand for cooling and lessens demand for heating. Be that as it may, it helps to understand that overall energy use will continue climbing, as it has throughout human history, though perhaps at a lesser rate due to improvements in the efficiency of devices and systems.


'Today capitalism has outlived its usefulness' MLK
A banner outside the August 2012 Republican National Convention in Tampa, Florida, displays an image of Martin Luther King, Jr., along with a quote from him. Though the Reverend Dr. King’s remarks and activism on behalf of civil rights earned the most attention, his beliefs about the evils of unbridled capitalism and militarism were also worrisome to leaders of the nation’s power structure. Photo by Flickr user Liz Mc.


The achievements of researchers and engineers who develop improvements in using energy more efficiently are necessary and helpful in the fight against global warming, and they are to be lauded. It is government and business leaders and ourselves, the users of energy, who deserve condemnation as improvements in energy efficiency come without changes in the overall demand for energy and reduction of its deleterious effects on the climate. Embracing improvements in efficiency without simultaneously reducing our demand for more of a currently harmful thing is like rearranging the deck chairs on the Titanic.

Eliminating the burning of fossil fuels for energy will make the single greatest reduction in the pollutants causing global warming. That seems obvious, and it’s a simple statement to make, but it conflicts with powerful corporate, capitalist interests. Switching energy production entirely to renewable sources like wind, solar, and hydroelectric will greatly reduce pollutants, though not eliminate them. That also seems obvious. Ignoring for the moment the fraction of the population who blindly refuse to acknowledge responsibility for what is happening all around them, there is a greater obstructive force standing in the way of reducing carbon emissions enough in the next 10 years to slow – or even halt – climate change, and it is called capitalism.

The Trio of Emmylou Harris, Dolly Parton, and Linda Ronstadt sing “After the Gold Rush” on Late Show with David Letterman on March 24, 1999. Neil Young wrote the song for his 1970 solo album, and the lyrics of the final verse dreaming about escape from this planet to a new home are bound to remain a dream for the foreseeable future, despite the efforts of technology capitalist Elon Musk.

At the climax of Michael Crichton’s 1969 novel The Andromeda Strain, the team of scientists studying an alien microbe they have dubbed “Andromeda” discover in the nick of time that the destructive microbe would grow out of control if given a nearly limitless source of energy, in this case the detonation of a nuclear device meant to contain it by destroying it. They discover the opposite would happen, that the Andromeda strain would feed greedily on the energy supplied by nuclear fission and would quickly overtake the planet, and in a tense scene during the countdown to detonation, they manage to disarm the research facility’s nuclear device. Capitalism is similarly greedy and destructive. It is a system that needs close watching and regulation, not the rampant deregulation of the past 40 years. Like the unregulated sex urge which has led to global overpopulation and the consequent strain on the earth’s resources, greed is also an innate urge in humans, an urge that has found its closest reflection in capitalism, and unregulated it plunders and eventually destroys the earth’s resources, including its many peoples, rich and poor alike.
— Techly

 

Shave and a Haircut

 

Two bits! There, that feels better now, doesn’t it? A sense of completion and the comfort of familiarity. The phrase “two bits” indicates twenty-five cents specifically, and can also mean something cheap generally. The digital currency bitcoin apparently derives its name from the old fashioned uses of “bit” to indicate parts of a dollar or other currency. At the current exchange rate of around 15,000 dollars to one bitcoin, however, a bitcoin itself represents anything but parts of a dollar. Quite the opposite.

From the 1988 film Who Framed Roger Rabbit, the irresistibility of finishing off “Shave and a haircut, — —-“.

The record high valuation of bitcoin may not stand for long, and in six months one bitcoin may be worth 30,000 dollars or it may be worth 150 dollars. No one knows for sure, and that’s what is fueling a lot of argument and speculation. High amounts of speculation in the market are what inflates a bubble, and the question with bitcoin is whether it is indeed a bubble and when it might burst. That generates more speculation. More small investors buy into the market. Historically what has happened in such cases is that something happens, a large investor or two gets spooked, dumping shares on the market, a selling panic ensues as everyone tries to get out of the market while the watch the value of their investment plummet, and that’s it, the bubble burst.

Bitcoin or something like it will be around for as long as there is an internet and a demand for a monetary barter system which is decentralized and doesn’t involve significant charges going to middlemen such as banks or credit card companies. As more people use digital currency and more merchants accept it in transactions, the volatility of its valuation will settle down. Tulips are still around, after all, and people still value them, just not to the unrealistically high degree they did when the bulbs were novel. The long term problem with digital currencies generally, and bitcoin in particular, will be in decreasing the horrendous energy demands of mining them and, to a lesser extent, processing transactions. The electricity demands of mining bitcoin are now equivalent to those of Serbia, and will soon be on a par with Denmark’s electricity use.

Discussion of whether the current valuation of bitcoin represents a bubble often refers to Charles Mackay’s 1841 book Extraordinary Popular Delusions and the Madness of Crowds, and particularly to Chapter 3, “The Tulipomania”.

Much of the mining occurs in China, using electricity generated by coal-fired power plants. At a time when combating the effects of global warming is becoming a top priority, the mining of bitcoin could present an ecological catastrophe when it reaches the same level of energy consumption as that of the entire industrialized world, as it is predicted to do in the early 2020s. The digital currency genie is out of the bottle, and there’s no stuffing it back in. That leaves two options, or a combination of both – finding more energy efficient ways of mining digital currency, or using more environmentally friendly energy sources, such as solar.


The solar energy option is immediately attractive because it would help defray installation costs of solar arrays more quickly and because poorer countries, which are generally nearer the equator and hence in sunnier climes, could see income from a source that is neither environmentally nor socially destructive the way production of sugar or other cash crops has been for them. Puerto Rico, the United States territory that recently had its conventional power grid devastated by Hurricane Maria, could benefit by rebuilding with the intention of using solar energy at least partially for the profitable production of digital currency. Surplus energy from the arrays built with money from bitcoin mining would power homes and businesses at subsidized rates for people who could not afford it otherwise in very poor parts of the world. Smaller, locally owned solar arrays would be a better way to produce power because of the inefficiency of transmitting solar power long distances either in the form of direct current, or after inverting it into alternative current. Decentralization of the means of production would also serve to keep power and money in the hands of locals.

De Waag Bitcoin
Bitcoins accepted at a café in Delft, The Netherlands, in 2013. The Netherlands became a center of the tulip trade in the seventeenth century during “The Tulipomania”, and remains a primary grower of the bulbs to this day. Delft lent its name to a particular kind of pottery and the shade of blue it is renowned for, which has also been applied to some flowers bearing the same shade of blue. Photo by Targaryen.

Should you invest in bitcoin? That depends on your outlook. In the currently volatile market, investing in bitcoin should be treated like gambling. In other words, don’t invest any more of your government backed (in the United States the currency is actually backed by the Federal Reserve System, a private institution of the banking industry, though it is insured by the federal government) currency than you can afford to lose. For some people that can be quite a lot, but for most people that would amount to very little.

Should you get involved in bitcoin mining and processing of transactions? At the current valuation of bitcoin, that could be quite profitable. Tomorrow its valuation could drop below the cost of the electricity required to mine it. At any rate, the “mining” simile is somewhat inaccurate, since in a comparison of the digital currency market to real world mining, the people with computer equipment engaged in its production and in the processing of transactions are actually more like the merchants in a nineteenth century American mining town who sold goods to the miners who were hoping to strike it rich.

The opening scene of Powaqqatsi depicts working conditions at the socially and environmentally disastrous Serra Pelada gold mine in Brazil. This 1988 film by Godfrey Reggio, with music by Philip Glass, is the second in his Qatsi trilogy of meditative documentaries.

A very few of those miners struck gold, and most went bust, while the merchants usually did consistently well, a few becoming household names still known today, like Levi Strauss. If you do get involved in bitcoin “mining”, it might help to connect the equipment to a solar array rather than the conventional power grid, because then when the bubble bursts and the valuation of bitcoin drops to the floor, you can possibly still operate at a profit when others cannot, or at the very least you will have an inexpensive, environmentally friendly source of power for your other ventures.
― Techly