Bitcoin mining in the spotlight for ESG

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(Kitco News) – Miami Mayor Francis Suarez is touting renewable energy for Bitcoin mining.

Mayor Suarez was recently featured on the podcast “The Best Business Show with Anthony Pompliano”. He discussed the city’s role in the adoption of Bitcoin. He described China’s recent move to ban Bitcoin mining as a “huge strategic geopolitical opportunity” for the United States. As it turns out, Mayor Suarez has had discussions with power companies and miners about the proliferation of clean energy mining.

Bitcoin mining is the process by which transactions are verified on the blockchain and new coins are minted. This practice has been criticized for its energy consumption. Tesla CEO Elon Musk cast a shadow over Bitcoin in May, when he criticized its reliance on dirty fossil fuels, especially coal, for mining and transactions. His remarks triggered a drop in the price of Bitcoin at the time, from nearly $ 60,000 to nearly $ 30,000. While the price of Bitcoin has since recovered from those lows, it has been stuck in the doldrums of late, currently hovering around $ 43,100.

Reggie Raghav Jerath, founder and CEO of cryptocurrency mining firm Gather, told Kitco that Bitcoin mining dynamics are currently favorable.

“Mining is currently being used as a blanket. Payback periods are not very long if you invest in equipment. Nations are doing it. The demand for mining is increasing and it will continue to rise and become more. competitive, ”he said. noted.

ESG question

Miami Mayor Suarez believes the ESG issue has been “manipulated”, saying the Bitcoin community has been “unfairly characterized as one that doesn’t care about ESG.” He believes the opposite is true and that Bitcoin miners are focusing on carbon neutrality without polluting emissions, which were more of a by-product of mining activities in China.

“The closure of China is a huge opportunity for this country… We must ensure that none of our laws stand in the way of this burgeoning innovation,” Mayor Suarez said on the podcast.

Source: YouTube

Jerath de Gather explained to Kitco how the computing power that was once dedicated to China is now being redirected.

“Not that long ago the ban on Bitcoin mining in China took place and 1,000 MW of capacity had to be moved. No place could handle all that capacity, so it’s broken and going. everywhere 7 KW, 10 KW, 12 KW, etc. Not too much of this goes to the US unless there are special electricity tariffs. Most of it goes to South America, Canada, Canada. Russia, Sweden, Norway and the United Arab Emirates, ”he said.

Jerath also touted renewable energy sources such as solar power for mining Bitcoin, which has become increasingly economically viable.

“The biggest hurdle here is the cost. Solar panels are a good example. Two or three years ago they were so expensive that it didn’t make sense to use solar power for miners. ASIC Now solar panels are cheaper so the return on investment period is shorter, ”he said.

For its part, Gather provides processing power for mining technology, which is collected when users visit a website and give their consent for their computer or mobile phone to contribute idle processing power to be used for mining. mining. Jerath explained that it requires the same amount of resources as watching a video.

Suarez, meanwhile, believes there is absolutely a way forward for Bitcoin mining powered by nuclear power generation, adding that nuclear is just one of the options for clean electricity and cheap. It can be expensive on the capital side to start with, but it gets pretty cheap once it’s in place. In Miami in particular, the rates are among the lowest in the country.

Suarez also highlighted solar power, hydropower, and natural gas, suggesting that producers can tap pent-up demand by under-producing clean energy assets and putting them to good use, something Florida companies are already exploring.

Bitcoin capital

Mayor Suarez said Miami is being woven into the “Bitcoin Capital of the Global Story,” and is doing its part to make Florida “the most crypto-friendly state.”

In October, the city of Miami will launch a tender for a supplier to allow the city to pay its employees in Bitcoin. Meanwhile, the Coinbase cryptocurrency exchange just announced that it will allow US users to receive their paycheck in USD or crypto directly to their Coinbase account.

Miami city officials are also exploring a way to allow residents to pay their taxes, which pass through the county level, in Bitcoin. The mayor is also considering holding Bitcoin in the city of Miami’s balance sheet, which may require changes in state law. He said,

“Bitcoin is more common every day, it’s a good day for the city to hold it as an asset, especially with the inflation we’ve seen in the CPI in recent months,” Suarez said.

For Bitcoin to achieve mass adoption, however, Gather’s Jerath said he believes the industry needs to make a paradigm shift to reduce its carbon footprint.

“The growing need for mining equipment and the energy consumption created by crypto companies must be reversed through innovative technologies such as green mining and other renewable energy sources. For this industry to achieve mass adoption, it must be prepared to recognize the obvious threats it poses. . There is no other solution. The whole industry needs to act and take the necessary steps to be completely carbon neutral if possible, ”said Jerath.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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