Cryptocurrency News

Sweden Believes Europe Should Ban Crypto Mining due to Environmental Concerns

There has been a significant increase in crypto mining activities globally because of the high demand for cryptocurrencies and the surge in the market in general. Moreover, China’s ban on crypto mining has also seen mining activity move from the region to other countries. It is important to note that China is not the only one that has concerns related to crypto mining. This activity has become a major cause for concern in different regions, particularly because it consumes a high amount of electricity for the goal to be accomplished. According to Bitcoin supports, the mining process for the pioneer crypto would eventually go green. 

However, it appears that Sweden is another country that does not agree with this and it has even gone as far as coming up with a proposal to urge the European Union for placing a ban on crypto mining. The government of Sweden has taken note of the massive amount of carbon footprint associated with Bitcoin mining. This has prompted the government to issue a proposal, which shows that Bitcoin mining makes absolutely no contribution to green energy. Euronews recently published that the directors of both the Swedish Environmental Protection Agency and also the Swedish Financial Supervisory Authority have shared their concerns about the region fulfilling their obligations pertaining to climate change.

The directors have expressed the concerns they have with the process of Bitcoin mining, concerns that have been circulated in the past as well. The directors also went on to disclose that there had been a significant increase in cryptocurrency mining in Sweden between the months of April and August. This appears to be similar to what is occurring regarding the equipment that’s needed for actually conducting the mining process. For instance, there has been a surge in demand for graphic cards. Throughout Europe, there is a very high demand for these cards, enough that they are now being sold for double the usual retail prices. 

This demand can be attributed to cryptocurrency miners who use these graphic cards in their equipment for mining digital currencies. According to the Swedish government, Bitcoin mining is bad for the climate as well as the environment. In addition, they highlighted that crypto mining was also bad for the efforts being made to switch to renewable energy globally. But, there are also people who believe that Bitcoin be beneficial for the renewable energy sector. Chief executive of Ark Invest, Cathie Woods had teamed up with payment service company Square for publishing a whitepaper.

This highlighted how the renewable energy sector could be incentivized with Bitcoin. Twitter’s CEO, Jack Dorsey, and Tesla’s CEO, Elon Musk, have also supported the claims that Bitcoin can actually be beneficial for the entire renewable energy sector. However, Musk had backed off earlier this year when he announced that Bitcoin payments would no longer be accepted at Tesla due to environmental concerns. He also held a meeting with North American crypto miners for discussing a way of switching the process to an environmental-friendly framework. 

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