According to a fund manager at Melanion Capital, the assertion regarding Bitcoin miners being a threat to the electricity network is a complete misrepresentation.
Response to Swedish Financial Authorities
The Swedish authorities last week urged to impose a continent-wide ban on PoW in relation to the crypto mining from the European Union. PoW or Proof of Work is a technique of BTC mining that has been targeted by the Swedish Finance control authority. Several fund managers of crypto have criticised this call of action
Melanion Capital is an investment firm headquartered in Paris. The firm is acknowledged for Bitcoin ETF and has responded to the financial supervisory authority of Sweden along with the Swedish Environmental Protection Agency on their recommendation to ban PoW mining in entire Europe.
Melanion highlighted that the notion suggesting Bitcoin miner’s role in jeopardizing electricity network is entirely misinformed. It explained the reason concerning the business model of Bitcoin miner’s that is meant to collapse with the rise in the electricity demand that would indicate the rise in energy cost.
The Intended Statement Highlight the Authorities
Statements made by Melanion indicate the authorities that have opted to harness the potential of PoW miners like Texas. Moreover, the fund manager added that Bitcoin miners act helpful concerning renewable energy power generation. It concerns their ability to gather wasted energy offer a baseload for relative volatile resources including hydropower or wind energy.
Following its decentralized tendency, the mining industry of Bitcoin doesn’t have any space to protect itself from governments. Melanion stated that as the Bitcoin mining industry doesn’t have any counterbalance against governments, this situation shouldn’t be treated as an opportunity to impose measures to leverage its defenceless state.
The Environmental Concerns
Concerns over environmental issues was a major topic of discussion during the United Nations Climate Change Conference. The surveys and research revealed that the third part of the world’s Bitcoin network has made an estimate suggesting that the sustainable energy mix has grown to 56% as per the data of the second quarter of 2021 in the mining industry. Miners are looking for varied energy sources and nuclear energy could be a source for an exceptional amount of carbon-free and clean power.
