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The initiative, which wants to promote Bitcoin education, is led by MicroStrategy CEO Michael Saylor.
The Bitcoin Mining Council made its formal debut on Thursday, as the controversy over the digital asset’s environmental effect heats up.
The Bitcoin Mining Council describes itself as a “voluntary and open forum of Bitcoin miners committed to the network and its core principles”. Its mandate is to promote transparency, endorse good practices, and foster Bitcoin education according to the official website.
MicroStrategy CEO Michael Saylor is one of the founding members who posted a call to arms on his Twitter feed on June 10.
The Bitcoin Mining Council is a voluntary and open forum of Bitcoin miners committed to the network and its core principles. We promote transparency, share best practices, and educate the public on the benefits of #Bitcoin and Bitcoin mining. Join us. https://t.co/vGPGD3TA5p
— Michael Saylor (@michael_saylor) June 10, 2021
The organization consists of a group of energy-conscious North American Bitcoin mining companies. It was first suggested by Elon Musk in a Tweet in late May, but he has since clarified that he will have no role at the Council. The site goes out of its way to underline this point:
“Elon Musk has no role at the BMC. The extent of his involvement was joining an educational call with a group of North American companies to discuss Bitcoin mining.”
Among the original members are investment management business Galaxy Digital, blockchain mining startup Argo, blockchain technology firm Hive, and Bitcoin mining business Riot. The founding members will bear all operating costs and have welcomed any Bitcoin miner from anywhere in the globe to participate. It was claimed that each miner who joined should:
“Believe that transparency around energy usage for mining is important and agree to voluntarily share their energy mix and hashrate size for research and educational purposes.”
The BMC will convene quarterly to study mining patterns, collaborate with industry experts, collect data for educational reasons, and promote growth in the North American BTC mining business.
The outfit stated that it is fully independent of the Bitcoin network and has no plans to undermine its decentralisation.
“We don’t seek to change the decentralized nature of Bitcoin or its core principles, but rather are working to raise awareness about Bitcoin and Bitcoin mining.”
It went on to say that the Council feels Bitcoin’s energy use is a feature, not a defect, and that it provides excellent network security. The energy usage of global mining operations has lately come under scrutiny as a result of Elon Musk’s statements on its environmental effect.
According to the Cambridge Bitcoin Power Use Index (CBECI), Bitcoin’s yearly electricity consumption is presently halfway between that of Holland and that of the United Arab Emirates.
Following recent state crackdowns, China’s hashrate supremacy is diminishing, while America’s is growing as mining businesses can access inexpensive renewable energy in areas like Texas.
More companies are establishing operations in the United States, drawn by the abundance of renewable energy. The new partnership between mining software provider Luxor and institutional Bitcoin technology and financial services provider NYDIG seeks to promote growth in the rapidly expanding industry.
However, one of the biggest winners for geographical reasons is neighboring Kazakhstan.