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“The argument that Bitcoin miners endanger the energy grid is entirely false,” argues Melanion Capital, a financial manager located in the European Union.
Crypto-related fund managers have reacted angrily to a Swedish financial watchdog’s request for a European Union-wide ban on proof-of-work (PoW) crypto mining, which is primarily used to mint new Bitcoin (BTC).
Melanion Capital, a Paris-based alternative investment firm best known for its Bitcoin ETF, responded to the Swedish Financial Supervisory Authority and Swedish Environmental Protection Agency’s proposal to ban PoW mining throughout Europe.
“The claim that Bitcoin miners jeopardize the electricity network is completely misinformed,” noted Melanion, reminding that Bitcoin miners’ business model is prone to collapse when the electricity demand increases as it would also increase energy prices.
Bitcoin miners are complementary for renewable energy power generation, “since they recover wasted energy and offer a baseload for a volatile resource like wind or hydropower,” according to the statement, citing Texas as an example of a state that has opted to embrace miners rather than restrict them.
The Bitcoin mining business has no lobby to protect its interests and negotiate with governments because of its decentralised nature. Melanion Capital re-iterated the point, adding:
“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.”
At the United Nations Climate Change Conference, the environmental impact of Bitcoin mining was a hot topic. Kristina Cornèr, speaking during a panel, said it’s more vital to have people in the blockchain field who are willing to think differently and look for solutions.
The Bitcoin Mining Council calculated that the global mining industry’s sustainable electricity mix climbed to 56 percent in the second quarter of 2021 after surveying one-third of the global Bitcoin network.
Bitcoin miners are also looking for alternative energy sources, and nuclear power isn’t ruled out.Panelists at the Bitcoin & Beyond Virtual Summit reminded the potential of nuclear energy to introduce “enormous amounts of clean, carbon-free” power to the baseload.