Home News Swedish call to ban crypto mining ‘completely misinformed’

Swedish call to ban crypto mining ‘completely misinformed’

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Crypto-related fund managers have reacted angrily to a Swedish financial watchdog’s request for a European Union-wide ban on proof-of-work (PoW) crypto mining. Which is primarily in use to create new Bitcoin (BTC).

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

“The argument that Bitcoin miners endanger the electrical network is entirely false,” Melanion said. Adding that Bitcoin miners’ business model is vulnerable to failure as electricity consumption rises, resulting in higher energy prices.

Bitcoin miners are complimentary for renewable energy power generation, “since they catch lost energy and offer a baseload for a variable resource like wind or hydropower”, according to the statement.

Bitcoin mining has no lobby to protect its interests and negotiate with governments because of its decentralised structure. Melanion Capital drew attention to the fact, adding:

“The lack of such a political counterweight for Bitcoin miners should not be an excuse to enact legislation. That makes an enterprise unlawful due to its lack of defensive capabilities.”

Bitcoin miners are exploring for other forms of energy

In fact, at the United Nations Climate Change Conference, the environmental impact of Bitcoin mining was a hot topic.

On the other hand, according to the Bitcoin Mining Council, worldwide mining industry’s sustainable power mix increased to 56% in the Q2 of 2021. After surveying one-third of the global Bitcoin network.

Bitcoin miners are also exploring other forms of energy, and nuclear power isn’t out of consideration. Nuclear energy has the ability to provide “enormous amounts of pure, carbon-free” electricity to the baseload. According to panellists at the Bitcoin & Beyond Virtual Summit.

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