The Swedish Financial Supervisory Authority and Swedish Environmental Protection Agency set their eyes on banning crypto mining across Europe.
Crypto-related fund managers have started going after the Swedish financial watchdogs that are calling for a European Union-wide ban of proof-of-work (PoW) crypto mining – a method synonymous with the minting of new Bitcoin (BTC).
One EU-based fund manager, Melanion Capital, insists that “The claim that Bitcoin miners jeopardize the electricity network is completely misinformed.” This Paris-based alternative investment firm is well known for its Bitcoin ETF, and they came out all guns blazing, to address these Swedish watchdogs keen on banning PoW mining across Europe.
Ina series of well-informed claims that the firm made, they also made it clear that the business model for a Bitcoin miner is prone to collapse if the electricity demand rises as this would also increase energy prices.
More to be gained from Welcoming Bitcoin Miners
There are regions within the United States that have realized the economic incentives to be realized from welcoming miners instead of banning them. Texas has come out as the leader in welcoming Bitcoin miners as the state sees them as complementary for renewable energy power generation because the harness wasted energy and provide a baseload for a volatile resource like wind or hydropower.
Texas will be the crypto leader.
Cryptocurrency is now coming to Texas grocery stores.
— Greg Abbott (@GregAbbott_TX) June 19, 2021
Melanion Capital reminded the Swedish authorities of the decentralized nature of crypto which means that the Bitcoin mining industry lacks a lobby to stand up for its interests and negotiate with central authorities. The firm added that “The absence of such a political counterbalance [for Bitcoin miners] should not be taken as an opportunity to implement measures rendering illegal an industry for its lack of defensive powers.”
Focus on Better Solutions
In this year’s United Nations Climate Change Conference, Bitcoin mining was a hot topic. With the topic getting this much traction, its time to revamp the blockchain playing field in a manner that people come in with a new mindset that provides solutions to these issues.
As per the data provided by the Bitcoin Mining Council after surveying one-third of the global Bitcoin network, they estimated that the global mining industry’s sustainable energy mix increased to 56% in the second quarter of 2021. This goes to show that solutions do exist and miners that are keen on protecting the environment are doing something to promote sustainability.
In addition to the current energy sources, Bitcoin miners are looking into other sources of energy, and nuclear is in consideration. Nuclear might be everyone’s favourite as it is seen as enormously clean and carbon free.
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