The Swedish financial authority’s call for an EU-wide ban on Proof of Work (PoW) mining, primarily known as the stamping of new bitcoin (BTC), has triggered a setback from fund managers linked to cryptocurrencies.
Melanion Capital, a Paris-based alternative investment company known for its Bitcoin ETF, has called on the Swedish financial authorities and the Swedish Environmental Protection Agency to ban Proof of Work mining across Europe.
“The claim that bitcoin miners are threatening the power grid is completely false,” Milanion noted, noting that the bitcoin miner’s business model is vulnerable to collapse as demand for electricity increases, as it will also drive up energy prices.
The statement notes that governments like Texas chose to welcome miners instead of banning them, adding that Bitcoin miners complement renewable energy production “because they capture wasted energy and place a significant burden on a volatile resource such as wind or hydropower.”
Mellon Capital stated that due to its decentralized nature, the bitcoin mining industry has no lobby to defend its interests and negotiate with governments, adding:
“The lack of such a political balance [for bitcoin miners] should not be seen as an opportunity to implement measures that will make the industry illegal due to its lack of defense.”
The ecological footprint of Bitcoin mining has become a major topic of discussion at the UN climate conference. Cointelegraph editor-in-chief Christina Korner spoke at one of the panels and said that in the blockchain area it is more important to have people who are ready to think with new mindsets and seek solutions.
Related topics: Climate Chain Alliance demands green economy at COP26
After examining a third of the global Bitcoin network, the Bitcoin Mining Board estimated that the sustainable composition of electricity for the global mining industry rose to 56% in the second quarter of 2021.
Bitcoin miners are also looking for other energy resources, and there is no nuclear power. Speakers at Bitcoin & Beyond Virtual Summit remembered the potential of nuclear power to deliver “massive amounts of clean, carbon-free energy” for primary loading.