Recently, the high amount of electricity consumed in bitcoin mining has emerged as a’hot potato’ in the cryptocurrency industry, and experts have continued to talk about it.
On the 28th (local time), China’s state-run news agency Xinhua cited the results of a study by Cambridge University and the Alternative Finance Center, saying, “cryptocurrencies such as bitcoin have no substance, and miners used for mining consume a large amount of power.” Mining consumes enormous power, and power should be used where it contributes to economic development,” he reported.
According to Shinhwa Corporation, as of May 10 this year, the annual electricity consumption of Bitcoin mining worldwide is 149.37 TWh, which has already exceeded the annual electricity consumption of Malaysia, Ukraine and Sweden.
Xinhua said, “Miners roam like migratory birds looking for places where electricity is cheap, but in Korea (China), mining sites are gathered in Xinjiang, Neimenggu, Sichuan, and Yunnan, where electricity is abundant and electricity is cheap.”
Then, citing a local industry official, he said, “In recent years, there have been many miners who want to leave the virtual currency mining business or leave China, and in particular, there are many miners who are considering relocation to countries with a lot of surplus power, such as Russia, Finland, and Canada.” .
According to IFP News, Iran’s energy minister, Reza Ardakanian, in a recent briefing to lawmakers emphasized that “the mining of cryptocurrencies that consume a lot of energy should be regulated and punishment for illegal miners should be made.”
“One bitcoin mining consumes 300,000 MWh of electricity. In order for bitcoin to be mined, 30,000 households must cut off electricity for 24 hours,” he said. “Up to now, 2,000 people have applied for permission to mine cryptocurrency. Only 99 of them finished the paperwork,” he added.
Recently, Iran has pointed to cryptocurrency mining as one of the main culprit of the power shortage. Earlier, the Iranian president announced that it would completely ban cryptocurrency mining until September 22nd.
#Bitcoin is hope for 8 billion people and every company on earth. It is revitalizing companies & investment portfolios. https://t.co/pJLo9HqyEL
— Michael Saylor (@michael_saylor) May 27, 2021
MicroStrategy CEO Michael Sailor, on the other hand, recently rebutted on Twitter that “Bitcoin is the hope of 8 billion people and all companies on the planet. It is bringing vitality to businesses and investment portfolios.”
“Bitcoin mining provides an excellent long-term value storage means, and is a powerful driving force in promoting sustainable energy use and wasted energy recycling,” he stressed.
In addition, Zhang Zuo-er, the founder of BTC.TOP, a large-scale Chinese mining pool, said through his Weibo account, “Bitcoin mining is a counterattack against the US dollar hegemony.” “We need a tool to break the monopoly of the United States.”
In particular, “Bitcoin is an energy solution,” said Marty Bent, co-founder of Great American Mining and host of the podcast Tales From The Crypt.
In a panel discussion session on’Bitcoin’s Energy Reform: ESG, Time Preference and Public Perception’ at CoinDesk’s 2021 Consensus Conference, he said, “Ignoring bigger problems in fields such as wind turbine construction and bitcoin It is hysteria to criticize only the energy consumption of coins,” he pointed out.
“Bitcoin mining is in the spotlight and is being forced to change energy sources in certain ways because of carbon neutrality,” he said.
Meanwhile, Compute North CFO Tad Piper said, “Because of the time gap between energy production and consumption, it is a better solution to switch to a variety of demands than to invest billions of dollars in energy storage in California. “It can be.”
“A bitcoin data center that can be turned on or off as needed can provide this variability,” he said at a recent CoinDesk 2021 consensus conference.
“The reason Tesla CEO Elon Musk recently changed his stance on Bitcoin may be because he realized that Bitcoin data centers are emerging as a power grid solution and can compete with his battery business.”