Marty Bent on Why ESG May Not Be A Good Idea | The Pomp Podcast

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Key Takeaways

  • The media focuses on Bitcoin’s volatile price. Meanwhile, Bitcoin’s development, hash rate, and adoption are all increasing.
  • ESG is about control; it’s an attempt to manipulate access to capital and make it contingent on meeting ESG subjective criteria.
    • The state picking winners and losers is the slippery slope of ESG, eventually controlling how businesses run their operations. Including energy mix, board room diversity, etc.
  • It’s dangerous to enforce using unreliable energy sources for securing the electrical baseload, with consequences evident in rolling blackouts and rising electricity prices
    • Reliable energy that can handle peak demand during adverse conditions is essential to electrical grids.
  • Bitcoin energy mix already has the highest penetration of renewables of any industry in the world
    • The mining industry is engaging in a losing battle to appease ESG guidelines. However, social and governance regulations will follow environmental ones
  • Great American Mining (GAM) uses waste gas that would otherwise be flared to mine bitcoin. It isn’t always possible to transport this gas. Instead, GAM brings the market to the molecule.
  • Proof of work with difficulty adjustment melds the physical and digital worlds together, bringing to fruition the century-old idea of a currency backed by energy.
    • By contrast, Proof of Stake (PoS) rehashes our current system into another one in the blockchain space. PoW fixes PoS
  • The lightning network can be used for value transfer and as a communications network. For instance, it enables the monetize VoIP calls, micro payment paywalls, podcasts, etc.
    • In Podcast 2.0, you can embed a Lightning network public node into the RSS feed and allow Podcast 2.0 apps to stream satoshis as they listen

Intro

Bitcoin is Winning

  • The media focuses on Bitcoin’s volatile price. Meanwhile, Bitcoin’s development, hash rate, and adoption are all increasing.
    • Bitcoin network is still distributed and produces blocks with no hiccups, it survived the hash rate migration from China and emerged even stronger.
  • The current power structure favors those in proximity to the monetary spigots, namely those in politics, banking, and finance.
    • Bitcoin throws a wrench in this wheel and Marty is worried about the desperate authoritarian push to control society.

What the ESG Is

  • The stated goals of ESG are to set environmental, social, and governance criteria to help investors evaluate companies.
    • In reality, the ESG criteria is virtue signaling about environment and social equality. ESG is about control.
  • ESG will manipulate access to capital by making it contingent on meeting the subjective criteria of ESG, which may not be in fact environmentally friendly or in support of social equality.
    • Similar to how the Fed manipulates monetary policies to micromanage corporations and the economy
      • “In my opinion, ESG is just an extension of central planning and the attempt to granularly micromanage whole industries in another way” – Marty Bent
  • The ESG narrative is getting louder, pushed by the mainstream media and corporate banking class.
    • The hypocrisy of the ESG movement includes ignoring the slave labor and coal used in the production and recycling of solar panels

The Adverse Effects of Forcing Unreliable Energy

  • It’s dangerous to force electrical grids to use unreliable energy sources to secure the electrical baseload.
    • The consequences are evident in the rolling blackouts in California, New York, and Texas. As well as the rising electricity prices, which hit the poorest hardest.
      • Moreover, blackouts are blamed on people ‘using too much electricity’
  • Even worse, the environmental movement is also pushing to decommission nuclear energy, arguably the cleanest and most dense energy source known to man.
    • Consider this, New York residents started receiving emergency alerts to ration power consumption only 2 months after decommissioning the Indian Point Energy Center
  • In Texas, subsidies allowed the expansion of wind and solar sources at the expense of maintaining other sources.
    • As a result, adverse weather changes brought down the under-maintained power plants, while also not being suitable for renewable sources. This leads to grid failures.
    • Put simply, no matter how many solar panels and wind turbines there is, it requires the wind blowing and the sun shining
      • Logical inconsistency: Weather gets hot when the wind stops blowing, so people turn on their ACs, but wind turbines aren’t working because the wind stopped blowing!

Figuring Out the Right Energy Mix

  • Securing a reliable baseload of energy that can handle peak demand during adverse weather conditions is essential to any grid.
    • Next, figure out where intermittent energy sources fit in the grid, keeping in mind the lack of energy storage solutions
  • In Shorting the Gid: The Hidden Fragility of Our Electric Grid, author Meredith Angwin describes the trifecta of energy mix to build a reliable grid, including importing, and other factors
  • By contrast, unelected bureaucrats of the WEF and ESG have undue power over policies globally
    • Consider this, Alienware now can’t ship gaming computers to entire states because of power consumption regulations.
      • Who decides it’s ok to run a washing dryer but not a gaming computer?
    • The state picking winners and losers is the slippery slope of ESG, eventually controlling how businesses run their operations. This will encompass energy mix, and board room diversity, etc…

ESG and Bitcoin Mining

  • Bitcoin energy mix has the highest penetration of renewables of any industry in the world
    • However, “This falls on deaf ears because people don’t actually care about the environment or the energy mix of Bitcoin, they care that they can’t control Bitcoin” – Marty Bent
  • The mining industry is engaging in a losing battle to show its energy mix and appease the ESG movement. However, social and governance regulations will follow environmental ones
    • Social (S) will include pointing your hash rate at a certain pool, which may censor certain transactions or accept only whitelisted institutions
    • Governance (G) will, in essence, demand bitcoin protocol abide by the ESG guidelines

Great American Mining (GAM)

  • Bitcoin mining is competitive, and miners constantly seek out the most stranded energy sources
    • GAM uses waste gas that would otherwise be flared to mine Bitcoin. It isn’t always possible to transport this gas. Instead, GAM brings the market to the molecule.
  • Methane gas is burnt because it has worse effects on the environment compared to carbon dioxide. However, flares aren’t efficient and methane leaks into the atmosphere.
    • GAM uses 99.9% efficient generators and turns waste gas into economic value, an example of market incentives leading to beneficial outcomes to all parties involved
  • Bringing the market to the molecule will change the decision-making processes of oil producers. For instance, affecting the controversial pipeline issues of oil production.

On Elon, Jack, and Cathie (Read the Podcast Notes)

  • “I think it’s the conversation that billionaires running massive companies will have. It’s not going to be uncensored, it will be buttoned up” – Marty Bent
    • That said, Elon Musk doesn’t seem to understand Proof of Work, nor is he incentivized to understand it with Tesla benefiting from carbon credits
  • Marty disagrees with Elon’s claims that 100% of Bitcoin mining can transition to solar and wind in a decade.
    • Jack highlighted the opportunities present in improving the fossil fuels supply chain, mentioning how GAM profitably fixes the huge waste energy problem

Proof of Work: The 8th World Wonder

  • Satoshi calibrated Bitcoin block production by adding the difficulty adjustment to the proof of work algorithm
    • “It’s an innovation that will be looked back upon decades and centuries from now as one of the most pivotal inventions in human history, on par with the wheel and the internet” – Marty Bent
    • However, it’s the one thing that the public, mainstream media, and investment class still don’t understand
  • Proof of work melds the physical and digital worlds together, bringing to fruition the century old idea of a currency backed by energy.
    • In 1921, Henry Ford wrote on moving off the gold standard to a kWh-based currency, and how removing central banks and governments from money will end all wars.  

Proof of Work Fixes Proof of Stake

  • PoS incentives large holders to accumulate more and assert more power over PoS network without expending work or using energy
    • Case in point, large exchanges can already offer higher staking rewards due to centralized nature
      • In other words, PoS rehashes our current system into another one run by the rich in the space
    • “I think proof of stake is one of the red herrings in the space” – Marty Bent

Bullish on the Lightning Network

  • In addition to value transfer, Lighting can also be used as a communications network.
  • Lightning makes it possible to monetize VoIP calls, micro payment paywalls, podcasts, etc
    • In Podcast 2.0, you can embed a Lightning network public node into the RSS feed and allow Podcast 2.0 apps to stream satoshis as they listen
  • “If you think the internet is cool now, just wait till you see what happens when the Lightning network gets embedded into every process on the internet” – Marty Bent
    • Internet always had the unused 402 error in anticipation of a native currency

Closing Thoughts

  • Bitcoin is an imperative technology for a free future. The alternative is a surveillance state, with unelected officials saying out aloud that their goal is to control you.
    • For instance, the Head of the Bank for International Settlements (BIS) spoke about how CBDCs will allow granular money control and enable enforcing negative rates, censor transactions, and embed social credit scores.
  • The vaccine passport is a Trojan horse towards CBDCs and a dystopian future
    • It’s either they have control or you have sovereignty
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Notes By Mostafa Khaled

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