Industry Committee on Dec. 8th, 2022

[Prof. Charlaine Bouchard]

I'd like to add two minor points.

First of all, proof of work and blockchain are emerging systems. A lot of research is under way and things are going to change. What we often forget is that blockchain is very interesting in terms of decentralizing energy systems. All kinds of studies have demonstrated that, and I would ask you to look at the ones published about blockchain, which introduces opportunities for consumers of energy.

In a New York suburb, the prototyping carried out by Transactive Grid clearly demonstrated the benefits of blockchain in terms of decentralized energy trading, metering, investments, carbon trading, network management and so on.

Thank you.

[The Chair, Liberal, Joël Lightbound]

As I understand it, Hydro-Québec will always produce for maximum demand, and there will therefore always be an energy loss. When you mine Bitcoin, I think that the technology could be interesting in terms of using the energy you need and then transferring some of it around the world through blockchain transactions.

Ms. Leverton, over to you to conclude the discussion.

[Jaime Leverton]

Thank you so much.

I talked about that in my opening remarks. In the example of our site in Medicine Hat, our ability to consume that energy when it's not required by the local community means it's a completely efficient system.

[The Chair, Liberal, Joël Lightbound]

We'll have Mr. Vis, please.

[Jaime Leverton]

The other thing I want to point out is that Hut 8 is one of the founding members of the global Bitcoin mining council, which publishes research on a quarterly basis that specifically addresses the energy sources of Bitcoin mining around the world. What we've been able to demonstrate quarter over quarter is an increased use of renewable energy sources, and we're one of the most renewable-intensive industries on the planet, with over 58% of the Bitcoin mining industry using renewable sources.

One of the challenges we face as an industry is that it is so transparent. Our energy use is well understood and well known, therefore it gets a lot more attention, whereas if you look at other industries, fiat or gold mining or even the gaming industry, for example, you really can't quantify the amount of energy they use the way you can with Bitcoin.

We think of proof-of-work mining as a feature. This transparency and this decentralization are features of the system, and the ability to use it for the greater good, not just in the output of Bitcoin itself but in the ability to monetize energy and to build stable, renewable grids, is truly incredible technology.

[The Chair, Liberal, Joël Lightbound]

Mr. Mills, you have the final word, briefly, because we have to go vote.

[Brad Mills]

Mr. Chair, I want to put in one final point of consideration for everybody. Bitcoin founders and entrepreneurs are interested in these other use cases, like decentralized identity and peer-to-peer technology like the decentralized web. It is being built out on stacks, on layers on top of Bitcoin, even without blockchain at all. You don't necessarily need that.

[The Chair, Liberal, Joël Lightbound]

Thank you, Mr. Mills.

I'm sorry. I assume you want to go to the Lightning Network. That's also very fascinating. It's a very interesting technology for those curious enough to take an interest beyond the caricature of Bitcoin bros and the like.

Thank you very much for sharing your thoughts and knowledge with us.

That's the end of the meeting.

Thanks to everyone, the analysts, the members, the interpreters and the clerks.

The meeting is adjourned.