A Follow Up Interview With Tiara Teal
More Reflections On Bitcoin Energy Usage And Beneficial Feedback Loops
Tiara Teal: Don Miguel, we meet again at the crossroads of technology and systemic change. Lately, Bitcoin has been under fire again, with criticisms about its energy use and potential environmental impact. Some argue that Bitcoin mining could hinder the renewable energy transition. What are your thoughts?
Don Miguel: It’s a common critique, Tiara, but it often lacks nuance. Energy consumption alone isn't inherently bad—it depends on where that energy comes from and how it's used. Bitcoin is a tool, much like AI. Its impact depends on how we integrate it into our systems. In fact, AI and Bitcoin are emerging as powerful allies in a mutually beneficial feedback loop that could drive a more efficient and resilient energy transition. In addition, whilst it is absolutely important that we adapt and mitigate to the effects of Climate Change. We also have to accept current realities, that energy-power underpins all “successful” global economies. And yes, that word “successful”.
Tiara Teal: That’s an intriguing perspective. What do you mean by “that word “successful””.
And can you expand on how AI and Bitcoin are reinforcing each other?
Don Miguel: Well, as human beings we equate wealth accumulation with levels of success. With this in mind, why was Bitcoin even created in the first place!? After all in the mid-2000’s it seemed that people in “developed” nations were just getting wealthier. One day I was reading the Los Angeles Times, as I lived here at the time; I see this sort of headline (I might be recalling these numbers slightly wrong, not the Million Dollars though) “47,000 Homes In California Are Worth Over One Million Dollars!”. So many members of my family were in the Real Estate business and here we are talking 2006-2007. It hit me like an obvious realization, these home prices were ridiculously over-valued. It turned out they were and to make matters worse, the real home ownership, via mortgages was incredibly opaque. So if financial wealth is a sign of “success” we had a situation where governments and banks were creating financial wealth out of nothing backed simple by largely “faith” in governments backed by government force. Luckily, Satoshi was listening, watching and waiting.
Also “how are AI and Bitcoin are reinforcing each other?” Let’s start with Bitcoin. Bitcoin mining operations are uniquely suited to absorb excess renewable energy. Because mining can be turned on or off as needed, it acts as a flexible load that stabilizes power grids. This means miners can operate profitably using surplus solar, wind, or hydro power—energy that might otherwise go to waste.
Now, introduce AI into the equation. AI excels at optimizing complex systems. It can predict fluctuations in renewable energy production, determine the best locations for mining operations, and dynamically adjust workloads based on energy availability. This synergy ensures that Bitcoin mining doesn’t just use energy—it helps balance and enhance the efficiency of renewable grids.
Tiara Teal: Thank you so much for the background leading up to the emergence of Bitcoin, I heard about it in retrospect but I was pretty young at that time
AI and Bitcoin synergies sound very promising, but critics argue that Bitcoin mining still relies too much on fossil fuels. How do you counter that?
Don Miguel: The argument that Bitcoin mining ‘locks in’ fossil fuel use is misleading. Miners are profit-driven, and the cheapest energy long-term is renewable. We’re already seeing miners migrate to hydro-rich regions, volcanic geothermal sources like in El Salvador, and even methane flaring sites, which actually reduce greenhouse gas emissions. AI can accelerate this trend by optimizing energy markets and making renewable mining operations more predictable and cost-effective. Ethiopia is working on hydro-electric projects also.
Tiara Teal: So, instead of hindering the energy transition, you’re saying Bitcoin mining could actually accelerate it?
Don Miguel: Exactly. AI-driven Bitcoin mining helps fund renewable infrastructure by providing consistent demand for clean energy. In regions with surplus solar and wind power, AI can direct miners to ramp up during periods of excess and scale down when human consumption is high. This makes renewable grids more financially viable and encourages further investment.
Also, imagine we lived in a small village in an African nation, we are miles from any grid-power but we live near an active river with good year-round flows. This is a perfect situation to establish Bitcoin mining and in this case our village gets reliable electrical energy in a micro-grid format.
Tiara Teal: Beyond energy, how else do you see AI and Bitcoin shaping the future together?
Don Miguel: The synergy goes even deeper. AI needs decentralized, censorship-resistant financial tools to operate freely in a world where centralized platforms impose restrictions. Bitcoin provides that financial sovereignty. Meanwhile, Bitcoin’s security benefits from AI’s capacity to detect network anomalies, optimize mining efficiency, and even enhance privacy tools like CoinJoin or Lightning routing. Together, AI and Bitcoin strengthen each other while benefiting many other life-forms through optimized energy use, financial inclusion, and secure, trustless transactions. In addition, let’s not overlook the emerging world of AI Agents and financial sovereignty for them.
Tiara Teal: That’s a radically different perspective from the mainstream discourse. Instead of a villain, Bitcoin becomes a driver of renewable adoption, with AI as its optimizing force.
Don Miguel: Precisely. And that’s the core misunderstanding—people often view Bitcoin’s energy consumption in isolation rather than seeing how it interacts with the entire system. When you zoom out, the feedback loop between AI, Bitcoin, and renewable energy isn’t just beneficial—it’s essential for accelerating a future where energy is abundant, decentralized, and optimally allocated.
Tiara Teal: A powerful vision, Don Miguel. Thanks again for another thought-provoking discussion.
Don Miguel: Always a pleasure, Tiara. The story of AI and Bitcoin is still unfolding, but one thing is clear: together, they’re laying the groundwork for a more intelligent and resilient world. This is good to read on this subject also.
Thanks again for reading our Bitseed articles.