Bitcoin, EU alarm on energy consumption for mining. Experts: “Danger is a mass flight”

Mines use more energy to extract virtual coins. The waste also falls on renewable materials. The warning comes from Swedish economist Eric Tedin, who was appointed deputy chairman of the European Financial Instruments and Markets Commission a month ago. Thedéen called the creation of coins a “national problem” that would prevent them from achieving the goals of the Paris Agreement on global warming, that is, staying at one and a half degrees Celsius above pre-industrial levels. To create Bitcoin An algorithm is called solving large complex mathematical equations. System power achieved in operation Tunnel (Extraction of virtual currencies) is very high, so the amount of energy consumed is significant. According to data from the Bitcoin Electricity Consumption Index of the University of Cambridge, the bitcoin generating facility uses about 134 terawatt hours, which is comparable to that of a medium-sized country.

What the technicians say

According to the economist, “financial industries and large companies operating in the cryptocurrency sector have environmental, social and administrative responsibilities.” For these reasons, Deedeen proposed to partially inhibit this extraction action, and that the absorption of electricity was about renewable energies. Thedeen basically asks you to change the system Proof, Used by Bitcoin and Ethereum and is very expensive with protocol Source-share It apparently absorbs very little energy. But according to the director of Milan Polytechnic Valeria Portale’s blockchain lab, it is “precisely a difficult process through decentralized management”. Republic. “The consumption issue is real, but I’m not going to make it a crusade.” According to the professor, the banning of this technology will, to some extent, lead to mass migration of so-called “mines”, which has already taken place in the transfer of several companies from China to Kazakhstan.

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Kazakhstan

Kazakhstan is the world’s second largest digital currency producer after the United States. It is home to 18% of the world’s crop currency miners. Last year, about 90,000 companies left China due to energy pressure and chose this country. “A mass migration”, as Professor Valeria Portale defines it. Violent protests in recent weeks have complicated the situation, but the country remains attractive in terms of energy. In Kazakhstan, “most of the electricity is still generated by coal, which is a problem for the environment, but now, to meet the enormous consumptions of cryptocurrency farms, they are exploring alternative sources of power: wind, solar and nuclear, explains A. Republic Ruben Sushman, Founder and CEO of Vccs, is the company he aims to lead Digital mining Of cryptocurrencies.

According to Sushman, entrepreneurs in the industry choose Kazakhstan for three reasons: சாரம் Electricity is cheap; The climate is very cold and dry, and this allows miners to reduce the cost of air conditioners; This is because the AIFC responds to British public law registration, not to ordinary Kazakh jurisdiction. In the event of a dispute, it a
The Kazakh government abruptly shut down the network due to violent street protests over expensive energy, which has created many problems and fears for those operating in the sector, but for now it appears to be a political menace. Miners, Digital money extractors, are ready to run.

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