Bitcoin mining, Pakistan could generate $35 billion worth of Bitcoin per year using this energy and the latest S19 Pro Antminer (assuming 10,000MW of excess energy available at $0.12 per kW/hour).
Pakistan is confronted with a new energy conundrum after decades of shortages. We produce far more energy than we require, but we have no way of putting it to use without a distribution and grid system.
Regardless of one’s feelings, the fact remains that Pakistan now produces more electricity than it consumes. According to Tabish Gauhar, the Prime Minister’s Special Assistant on Power, Pakistan may already have 50% more capacity than demand.
And, to add insult to injury, even though Pakistan is unable to use the excess energy it produces, the government is obligated to pay for it even if it is not used.
A different day will be dedicated to discussing how we ended up in this situation. Today, I’d like to focus on a one-of-a-kind solution to this conundrum, as well as a possible way to mitigate our losses in light of the situation we’re in.
Simply put, we will be able to repay our external debt in two years.
If JP Morgan’s prediction of Bitcoin reaching $146,000 comes true, Pakistan will profit by around $110 billion.
And don’t even ask me what we’ll do if Mike Novogratz is correct – the possibilities are endless.
Many crypto sceptics are already asking what would happen if Bitcoin is discovered to be useless. And, considering the ongoing controversy about the future of crypto currencies, it is a legitimate query.
The good news is that even if Bitcoin mining loses all of its value, as some critics have predicted, Pakistan’s losses will not be exacerbated because the government is already paying for excess energy, whether or not it is used.
So whatever revenue Pakistan is able to produce from this surplus energy will be used to construct the distribution network that will allow it to be used effectively in the future.
I’m sure sceptics would point out that our most recent technical breakthrough is the opportunity for people to open digital accounts, and we’re still celebrating that.
Yet I’m positive. After all, Pakistan’s Minister of Science and Technology, Fawad Chahudhry, has permitted the use of Cannabis for industrial purposes and is constructing a space museum in Islamabad.