Crypto mining has been a high cause for concern, especially because of the high amounts of electricity that this process consumes. While Bitcoin supporters state that the mining process will eventually go green, Sweden has come up with a proposal urging the EU to ban Bitcoin mining.
The massive carbon footprint caused by Bitcoin mining has come to the attention of the government of Sweden, which has issued a proposal showing that Bitcoin mining does not contribute to green energy.
Bitcoin mining is bad for the climate
A recent publication from Euronews has stated that the directors of the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency have raised their concerns about the region meeting its climate change obligations. The directors have raised their concerns about the issue of Bitcoin mining, echoing similar concerns that have been circulating in the past.
The directors also stated that cryptocurrency mining in Sweden had increased significantly between April and August. This is similar to what has also been happening regarding the products needed to enable mining.
For example, the demand for graphics cards in the market has increased. The demand has been high in Europe as these cards are now going for more than double the retail prices, which could be attributed to the need for these firms to mine crypto.
Bitcoin can incentivize the renewable energy sector
The Swedish government further stated that Bitcoin mining was bad for the environment and the climate; moreover, it was also bad for the global efforts regarding renewable energy.
However, many people believe that Bitcoin could be good for the renewable energy sector. Earlier this year, Cathie Wood, the Chief executive of Ark Invest, teamed up with Square, a payments service firm, to publish a whitepaper showing how Bitcoin could incentivize the renewable energy sector.
The sentiment that Bitcoin could help the renewable energy sector has also been supported by jack Dorsey, twitter’s CEO and Elon Musk, who have both supported these claims.
However, earlier this year, Musk stated that Tesla would no longer accept Bitcoin payments because of environmental concerns. He also held a meeting with Bitcoin miners in North America to talk about switching to an environmental-friendly framework.
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