Coin World News Report:
Whether in China or globally, the core issue of accepting or even promoting Bitcoin (BTC) mining is “how to solve the environmental and energy problems.”
Authors: Liu Honglin, Iris
“I will ensure that the United States becomes the capital of global cryptocurrency and a superpower of Bitcoin. If cryptocurrency is going to define the future, I want it to be mined and minted in the United States, not elsewhere. If Bitcoin is going ‘TO THE MOON’ as we say, I want the United States to lead this trend.”
– Donald Trump
Since Trump made this statement, Bitcoin mining and the value of Bitcoin have become the focus of the market. According to an investor report released on October 16th by analysts at investment banking giant JPMorgan, the 14 publicly listed Bitcoin miners in the United States currently control 28.9% of the global hash rate and their market dominance is still growing. Meanwhile, as the US election entered its final countdown in October, Trump’s chances of winning directly affected the price of Bitcoin. There are reports that if Trump wins, the price of Bitcoin may experience a major surge.
* Image Source: Voting situation in various states of the United States on October 23rd
In addition to the US election, the latest positive news about Bitcoin mining globally is the Bitcoin mining law that has come into effect in Russia, which is expected to enhance Russia’s position in Bitcoin hash rate. Previously, Manquan Law also published several articles analyzing the importance of Bitcoin reserves and mining industry, such as “Web3 Lawyer: How to view the US purchase of 1 million Bitcoins as national reserves?”, “Bitcoin welcomes ‘Made in the USA,’ and cryptocurrency mining becomes a new focus of major power competition”, and “Web3 Lawyer: Is BTC mining officially legal with Russia’s cryptocurrency mining law?”.
However, whether in China or globally, the core issue of accepting or even promoting Bitcoin (BTC) mining is “how to solve the environmental and energy problems.”
The Top 7 Sins of Bitcoin Mining: Environmental Unfriendliness
Restrictions on Bitcoin mining can be said to be a major trend in recent years globally, with the most typical being China’s regulatory policies.
1. China
China used to be the absolute center of global Bitcoin mining, with nearly 75% of the global hash rate. However, a notice issued in 2021 by the National Development and Reform Commission and other departments pointed out that Bitcoin mining led to energy waste, especially in energy-consuming provinces such as Inner Mongolia and Sichuan. Its high power consumption contradicts China’s carbon neutrality goals, making Bitcoin mining the first target of crackdowns. Against this backdrop, domestic miners have flocked overseas in large numbers. However, according to Bitcoin Magazine’s report “China has never banned Bitcoin mining,” China’s Bitcoin mining hash rate has only been “cleared” once in 2021 and then resumed, and it currently ranks second globally, behind only the United States.
2. Kazakhstan
After the ban in China, a large number of miners migrated to Kazakhstan, where energy is relatively abundant and electricity prices are low. The rapid growth of mining activities has put tremendous pressure on the country’s power grid and even caused nationwide power shortages. In order to control energy consumption, the Kazakhstani government began to restrict the power quota of Bitcoin mining companies in 2022 and intensified crackdowns on illegal mining farms. The country also introduced an electricity surcharge for cryptocurrency mining to reduce the impact on the power grid.
3. Iran
Iran is another important Bitcoin mining country, attracting a large number of mining companies with its low-cost electricity. However, Bitcoin mining is also considered one of the reasons for the country’s power shortages. To cope with the high electricity demand in the summer, the Iranian government imposed a temporary ban on Bitcoin mining during the electricity shortage period in the summer of 2021. By 2022, the Iranian government suspended mining activities again in an attempt to reduce pressure on the power grid during periods of high electricity demand and crack down on illegal mining farms.
4. Some US states
Although the overall attitude of the United States towards Bitcoin mining is relatively lenient and even welcoming, it is still “loose” in nature. Some states, considering environmental protection and the allocation of power resources, have adopted stricter regulatory measures. For example, New York State passed a law in 2022 that temporarily prohibits Bitcoin mining facilities from using fossil fuel energy in the state.
5. Other law enforcement actions
In recent years, some countries and regions have taken more severe law enforcement actions. For example, on August 21, 2024, Malaysian authorities destroyed over 900 Bitcoin mining machines in an operation against electricity theft. On May 27, Venezuelan authorities seized over 6,000 Bitcoin mining machines and confiscated a total of 17,000 machines, with plans to shut down all Bitcoin mining operations. On May 26, Paraguayan authorities seized nearly 400 Bitcoin mining machines in the city of Sapucaí. On December 29, 2023, Indonesian regulatory authorities raided ten suspected electricity theft mining sites, seized 1,314 Bitcoin mining machines, and detained 26 people.
It can be seen that law enforcement actions related to Bitcoin mining are usually linked to electricity pressure, electricity theft, and energy consumption. Therefore, in order to change the attitudes of governments towards Bitcoin mining globally, it is still necessary to start with energy and environmental protection. In fact, some countries have already begun to alleviate the burden on the environment caused by mining through environmentally friendly solutions and use this trend to promote economic growth, such as the United States and Russia.
US and Russia Support Bitcoin Mining: Clean Energy
Why can the United States and Russia make Bitcoin mining a national strategy, and how do they solve the issues of energy and environmental protection?
1. United States
Clean energy and technological innovation are the main means for the United States to solve the energy and environmental issues of Bitcoin mining.
Currently, some states in the United States have started to use clean energy, such as Texas. The state not only has low electricity prices but also has a large amount of renewable energy, especially wind and solar energy. These types of clean energy not only allow miners to operate at relatively low costs but also reduce their reliance on fossil fuels for Bitcoin mining.
At the same time, many Bitcoin miners and companies in the United States have realized the importance of energy efficiency and have taken some technological innovation measures to improve mining efficiency. For example, using advanced cooling technology to reduce the energy consumption of mining equipment, establishing clean energy facilities near mining farms, and reducing environmental impact through waste heat recovery. Some Bitcoin miners even offset their carbon footprint by purchasing carbon credits and investing in other sustainable projects such as afforestation to mitigate their environmental impact.
2. Russia
Abundant clean energy and favorable climate are key factors in Russia’s large-scale introduction of Bitcoin mining.
The Siberian region of Russia has abundant hydro resources, providing cheap and clean electricity supply for Bitcoin mining. The sparse population in the region leads to an excess of local energy supply, so the Russian government encourages miners to utilize these resources to reduce energy waste. Additionally, the cold climate in Siberia helps reduce the cooling costs of Bitcoin mining machines, making the mining process more efficient and environmentally friendly.
In terms of policies, Russia has enacted Bitcoin mining laws. The law sets clear and strict regulatory requirements and severe penalties for energy consumption to ensure that legal miners can use clean hydropower resources without negatively affecting the energy needs of local residents. In addition, the government encourages the control of illegal mining farms through legal means and ensures compliance with energy distribution in the mining process.
3. Other countries
Countries such as Canada and Norway have abundant hydro resources, and almost all of Iceland’s electricity comes from geothermal and hydroelectric power, while El Salvador is actively promoting the use of volcanic geothermal resources. These countries are using clean energy to reduce the environmental impact of Bitcoin mining, attract a large number of Bitcoin miners, and increase their own economic growth.
First Step in Global Strategic Layout: Promoting Environmental Protection
In order to further promote the acceptance and development of Bitcoin mining globally, especially in countries and regions with doubts about environmental protection, the first task of the global strategic layout is to promote environmental protection, which is also a key step in the sustainable development of the Bitcoin mining industry. This process requires not only policy support from regulatory institutions but also active cooperation from miners and related companies and practical technological innovations.
Manquan Law suggests considering possibilities from the government agency side and the miners’ side:
Government agency side:
Just as the actions of the United States and Russia in environmental protection and energy utilization, from the perspective of regulatory institutions, whether directly providing clean energy supply to Bitcoin miners or enacting incentive policies or setting up similar carbon offset programs to encourage mining companies to invest in sustainable projects such as afforestation, all can promote Bitcoin miners to adopt clean energy and consider energy-saving measures. In addition, through measures such as tax incentives and subsidies, the government can effectively guide miners to adopt more environmentally friendly technologies and reduce reliance on traditional energy sources.
Miners’ side:
Whether to meet environmental requirements from regulatory institutions or from the perspective of corporate social responsibility (ESG), actively adopting clean energy is a key step in solving environmental problems. At the same time, miners and companies should actively use technological innovation to improve energy efficiency. For example, using advanced cooling technology, establishing clean energy facilities near mining farms, and reducing energy consumption through waste heat recovery. Some miners also choose to offset their carbon footprint by purchasing carbon credits and investing in other sustainable projects such as afforestation to mitigate their environmental impact.
Furthermore, governments and miners can consider jointly building clean energy infrastructure, such as establishing wind, solar, or hydroelectric facilities near Bitcoin mining farms, allowing energy to be converted and utilized locally. This not only promotes the application of clean energy but also attracts more miners and mining companies, increasing the global share of a country’s Bitcoin hash rate. Based on these measures, countries can not only regulate the Bitcoin mining industry but also incorporate it into their long-term energy strategies and carbon neutrality goals.
In conclusion, raising Bitcoin mining to the level of national strategy is not only related to environmental protection and energy management but also closely related to technological innovation, economic development, and international competitiveness. Therefore, “promoting the development of the Bitcoin industry” requires not only slogans or visions but also practical actions. From clear regulatory policies to practical energy utilization solutions, and to technological innovation, the sustainable development of Bitcoin mining requires comprehensive efforts and execution. Only by coordinating environmental concerns with mining needs can countries truly promote the maturity and stability of the global Bitcoin mining industry.
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Rising Bitcoin Mining A National Strategy Prioritize Environmental Concerns
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