Friday, January 28

Sweden Leads Efforts to Ban Bitcoin Mining

Swedish authorities have been trying to put pressure on the European Union for countries to ban Bitcoin and other cryptocurrency mining in the region. O request, written earlier this month, have been echoing for the entire month.

Among the main allegations is the need to comply with the Paris Agreement, a treaty that stipulates the containment of global warming. According to authorities, the energy used by mining in Sweden has risen sharply in recent months.

The article also cites other cryptocurrencies with alternative mining to Proof-of-Work (PoW), reporting that they use 99.95% less energy, yet so far no model has proven as effective as PoW in terms of censorship.

Critics of cryptocurrency mining

The letter sent by the Swedish authorities points to studies carried out by the University of Cambridge and the Digiconomist, which indicate that Bitcoin and Ethereum mining use twice as much electricity as the entire Sweden.

The document also explains that activity increases with the price of Bitcoin, as it provides faster returns. However, it is also clear that the generator of the carbon footprint is not bitcoin itself, but its sources of energy dependent on fossil fuels.

In other words, this is a problem generated by the countries themselves, not by Bitcoin, after all, even electric cars will use these same sources. In addition, industry competition is also driving companies to look for ways to improve their earnings. This is the case of Riot Blockchain which is using immersive cooling in its ASICs.

Finally, the Swedish authorities’ request for the activity to be banned in the region makes a comparison between Bitcoin mining and the use of electric cars.

“It is currently possible to drive a medium-sized electric car for 1.8 million kilometers using the same energy needed to mine a single bitcoin. That’s the equivalent of 44 laps around the world. 900 bitcoins are mined every day. This is not a reasonable use of our renewable energy.”

They decide what is used for energy

As seen in the statement, these authorities think that Bitcoin, which is trying to solve monetary problems caused by these own rulers, is just a mere waste of energy.

After almost thirteen years of existence, Bitcoin continues to prove that Proof-of-Work is the most reliable method to achieve decentralization of an apolitical currency and with pre-defined control of generating new currencies.

If these governments, or at least one of them, had better monetary policies, maybe Bitcoin wouldn’t even exist. Today the BTC is a totally necessary asset as we cannot trust the State.

Finally, we don’t see any Swedish authorities trying to ban televisions, computers and other electronic devices. Maybe for them watching TV is more important than worrying about losing their currency’s purchasing power.