Global warming and climate change seem to be on everyone’s agenda these days. The situation is so alarming for some that they are proposing a complete ban of Bitcoin mining on EU soil. Swedish regulators are concerned about the amounts of energy that POW-based mining companies require to keep them operational. In addition, they fear that their country won’t be able to respect the Paris Agreement concerning the reduction of greenhouse gas emissions.
Throughout 2021, Sweden has witnessed a sharp increase in Bitcoin mining activities, partly because miners from China were fleeing their country searching for friendlier destinations.
Bitcoin requires plenty of computing power and electricity to operate the mining gear (ASIC miners) to generate new coins and validate the network. The energy used for these purposes, in most cases, comes from the burning of fossil fuels. Unfortunately, that leaves behind a big carbon footprint in a world that has become concerned with reducing dangerous emissions.
Miners are competing against each other to win the race of mining the next block of the chain. The more computer power you have, the bigger your chance to become the next validator. Unfortunately, more mining gear also means greater energy consumption. Various sources report that the PoW mining process emits as much polluting CO2 as several countries, including the likes of Switzerland or Greece.
More environmentally friendly alternatives are urgently needed. Moving to farms powered by wind, solar, hydro, or volcanic energy are all reasonable solutions to help preserve our planet.