thecoinrepublic.com
- Crypto mining operation are not a threat to the electricity network
- Swedish Financial Supervisory Authority and Swedish Environmental Protection Agency calls to ban crypto mining operations
- A crypto-related fund manager gave a backlash noting that such claims by the Swedish agencies is completely misinformed
- Crypto miners capture wasted energy and offer a baseload for a volatile resource like wind or hydropower
Crypto mining is allowing several nations to make passive income. Several firms in the digital assets mining industry are making billions of dollars through these operations. However, due to heavy power usage and climatic impact many concerns. Following the scenario, several nations are taking strict measures. Indeed, China has also prohibited such firms from continuing their operations in the region. Simultaneously, a Swedish financial watchdog calls for a European Union-wide ban on Proof-of-Work crypto mining. The watchdog believes that the cryptocurrency miners jeopardize the electricity network. However, the watchdog received backlash, highlighting the threat as a misinformation.
Crypto mining operations are complementary
According to the Swedish Financial Supervisory Authority and Swedish Environmental Protection Agency, the European Union should impose a wide ban on PoW based crypto mining operations. The agency believes that such operations threaten their electricity network. However, Melanion Capital, a Paris-based alternative investment firm that offers Bitcoin ETF addressed the Swedish financial watchdog. The crypto-related fund manager gave a backlash noting that such claims by the Swedish agencies is completely misinformed.
Moreover, Melanion also reminded that cryptocurrency miners’ businesses model is prone to collapse when the electricity demand soars. Indeed, such an increase in demand would increase the cost of energy.
Why do Swedish agencies call for a ban?
The call of Swedish agencies to ban crypto mining operations points to the authorities that have chosen to welcome miners rather than prohibiting them like Texas. The agencies also added that cryptocurrency miners are complementary for renewable energy power generation. Indeed, such operations capture wasted energy and offer a baseload for a volatile resource like wind or hydropower.
Crypto mining sector has no lobby to defend its interest and negotiate with governments. It is due to the decentralized nature of the cryptocurrencies like Bitcoin. Melanion also reminded that the absence of such a political counterbalance for cryptocurrency miners should not be taken as an opportunity to implement measures rendering illegal an industry for its lack of defensive power.
Blockchain ecosystem needs experts with new mindset
The crypto mining operation;s environmental footprint is a major conversation at the United Nations Climate Change Conference. Experts think that it is significant to have people in the blockchain industry who are ready to think with a new mindset and search solutions for their concerns.
Notably, a survey that monitored one-third of the global BTC network highlighted that the Bitcoin Mining Council estimates the global mining industry’s sustainable electricity mix has surged by more than 56% in Q2 2021.
However, cryptocurrency miners are also looking for other energy resources and nuclear energy is not off the table. Indeed, nuclear energy could introduce an enormous amount of clean, carbon-free power to baseload.