Swedish call to ban cryptocurrency mining ‘completely misinformed’, says fund manager

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A Swedish financial watchdog’s call for an EU-wide ban on proof-of-work (PoW) cryptocurrency mining, mainly known as the hits new Bitcoins (BTC), has drawn backlash from crypto-related fund managers.

Melanion Capital, a Paris-based alternative investment firm known for its Bitcoin ETF, has responded to the Swedish Financial Supervisory Authority and Swedish Environmental Protection Agency’s call to ban mining PoW across Europe.

“The claim that Bitcoin miners are compromising the power grid is completely wrong,” Melanion noted, recalling that the business model of Bitcoin miners is likely to collapse when demand for electricity increases, as that would also increase. energy prices.

The statement says authorities have chosen to accommodate miners instead of banning them, like Texas, adding that Bitcoin miners are complimentary for renewable energy production, “because they capture wasted energy and provide a base load for a volatile resource like wind or hydropower.

Due to its decentralized nature, the Bitcoin mining industry has no lobby to defend its interests and negotiate with governments, recalled Melanion Capital, adding:

“The absence of such a political counterweight [for Bitcoin miners] should not be seen as an opportunity to implement measures that make an industry illegal for its lack of defensive powers.

Bitcoin’s environmental footprint of mining was a major conversation at the United Nations Climate Change Conference. Speaking at a panel, Cointelegraph editor-in-chief Kristina Cornèr said it was more important to have people in the blockchain space who are ready to think with a new mindset and looking for solutions.

Related: Climate Chain Coalition Advocates For Creating A Green Economy At COP26

After studying a third of the global Bitcoin network, the Bitcoin Mining Council estimated that the sustainable power mix of the global mining industry rose to 56% in the second quarter of 2021.

Bitcoin miners are also looking for other energy resources, and nuclear is not excluded. Panelists at the Bitcoin & Beyond Virtual Summit recalled the potential of nuclear power to introduce “huge amounts of clean, carbon-free energy” into the base load.

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