MicroStrategy CEO Michael Saylor has published a letter outlining his thoughts on Bitcoin mining and its impact on the environment and energy systems.
He argued that bitcoin mining is actually a much smaller environmental issue than it is often supposed to be. Instead, he believes it would not be on the public radar without the intense lobbying efforts of competing interests in the cryptocurrency industry.
Michael Saylor defends mining
when posting Mail On Wednesday, Saylor said he was excited to “share the truth” about Bitcoin’s relationship to the environment, given the “disinformation and propaganda” that has been circulating on the topic recently.
The Bitcoin network currently consumes more power than any other blockchain network by a large margin. This is due to its Proof of Work (POW) consensus mechanism, which requires power-intensive computing platforms (miners) to secure the blockchain.
The only network of similar size that uses this mechanism is Ethereum. but with merge Expected to happen within the next 24 hours, Bitcoin will soon stand on its own as the only cryptocurrency with an impressive power profile.
But as Michael Saylor has argued, Bitcoin’s contribution to climate change is still a “roughly wrong” on the world stage.
“99.92% of the world’s carbon emissions are due to industrial use of energy other than bitcoin mining,” he said. “Bitcoin mining is neither the problem nor the solution to the challenge of reducing carbon emissions.”
One of the reasons for Bitcoin’s low carbon footprint is its highly renewable energy configuration. a Investigation From the Bitcoin Mining Council in July it was found that the energy mix in the mining industry is 59.5% green – a number that is rising over time. By comparison, the total green energy mix is around 21.7%.
The president also explained how bitcoin mining provides substantive benefits to the environment and energy systems. For example, miners could be used to exploit stranded methane that would otherwise have been burned in a way that is more dangerous to the environment.
In addition, miners can provide a flexible load to power grids with “unreliable” renewable sources such as wind and solar power. This will help these networks remain profitable and “finance the expansion of the additional capacity required to responsibly operate large industrial/population centers.”
Looking at the statistics, Saylor doesn’t believe the environmental policy arguments against proof-of-work are made in good faith.
“[Bitcoin’s carbon emissions] It would hardly have been noticed if it were not for the competitive guerrilla marketing activities of cryptocurrency promoters and other lobbyists trying to focus negative attention on Proof of Work mining.”
It’s not uncommon for crypto figures to engage with Bitcoin’s power claims — especially those that support proof of stake.
Cardano founder Charles Hoskinson Tell Lex Friedman last year suggested that Tesla should accept ADA for car payments, rather than energy-intensive Bitcoin. In March, Chris Larsen, co-founder of Ripple is funded A $5 million environmental campaign to spread awareness of Bitcoin’s potential environmental damage.
The impact of such endeavors appears to have been a cause in both the free market and the regulatory arena. While some companies have got back To accept Bitcoin payments due to environmental concerns, the White House is now Taking into account the A complete ban on mining to address the problem.
In Saylor’s view, these lobbying efforts are only meant to steer the government’s focus away from proof-of-stake cryptocurrencies, which have their own regulatory issues.
Saylor said these efforts “distract regulators, politicians, and the public from the inconvenient fact that Proof of Stake crypto assets are generally unregistered securities that are traded on unregulated exchanges at the expense of the retail investment public.”
ripple is currently involved in Experience With the Securities and Exchange Commission (SEC) to conduct a sale of unregistered securities in the form of XRP. Meanwhile, cryptocurrency exchanges such as Coinbase are taking place targeted By the commission for listing several cryptocurrencies that passed the Howie test.
Michael Saylor says that the energy concerns that followed Bitcoin are lobbyists’ first publicity on CryptoPotato.