The key idea behind Bitcoin and other crypto currencies is that they are decentralized and nobody is in charge. It is reported that the process of creating new coins and recording transactions uses as much electricity each year as a country the size of Argentina. The brand new technology is eager to convince it won’t destroy the planet. A group of Bitcoin miners from North America, with the encouragement of crypto-enthusiast Elon Musk, decided to take charge. The members of the self-appointed Bitcoin Mining Council decided to repaint the shape a major image problem for the crypto currency: its energy use.
This high consumption of energy issue has been faced by China and Iran and has forced them to shut down the many unauthorized Mining and that resulted in the wild swings in the Bitcoin price recently. The chief executive of Hut 8 Mining, Jaime Leverton, one of the members of the Bitcoin Mining Council, clarifies that the program aim is to “counter the noise and some of the misinformation that’s coming at the Bitcoin mining industry”. She says they want to “rewrite the story around the crypto currency industry’s energy usage” to address concerns that the industry is not environmentally friendly. She insists that Bitcoin mining equipment essentially computers packed with specialized chips, is getting much more efficient and quotes a study showing 39% of the energy used in mining comes from renewable sources.
North America Mining only accounts for a small proportion of the whole mining, with much of it taking place in China, where electricity from coal-fired power stations is used. Even with the ban in China, Reuters is reporting that many miners are planning to move to oil-rich Kazakhstan, with its abundant cheap, non-renewable energy. The finance writer Frances Coppola, a long-term critic of crypto currencies, concedes that the North American miners are now taking the environmental impact of their activities seriously. But she points out that even a greener Bitcoin presents many problems.
“Bitcoin, because it is an add-on to existing financial systems, actually increases emissions – it’s going to increase emissions just because it exists. And there are also things like the ransom ware threats – criminals use Bitcoin for ransom ware demands,” she said. While this new technology is struggling with its impact on the climate, they are also trying to adapt to a fast-changing world. But what is interesting is how differently it is valued by investors.
Also Read: Bitcoin Mining Banned in Iran