The fight for bitcoin mining is moving north again. This time, many authorities in Sweden believe that the encryption process should be restricted throughout Europe. In other words, it cannot happen at the rate that it is happening right now.
Sweden aims to end cryptocurrency mining
Cryptocurrency mining has become one of the most controversial topics on the digital currency scene lately. For one thing, the suit has received a lot of criticism from the likes of Elon Musk, famous for Tesla and SpaceX, and Kevin O’Leary, who appears often on the show “Shark Tank.” Musk, for example, has commented that he does not want to accept crypto payments for his Tesla vehicles until miners learn to control their emissions and use their energy more intelligently.
In addition, O’Leary said that he will no longer buy digital currency mined from China as the country does not employ “green” mining methods. Various reports have also been published over the years claiming that crypto mining uses more energy than some countries.
Now, the Swedish authorities, under the Paris Agreement, are calling on regulators across Europe to come together and enact legislation to crack down on crypto mining projects that use excessive amounts of energy. The goal is to reduce the global temperature by around 1.5 degrees Celsius.
The concerns come from Erik Thedeen, director of the Swedish Financial Supervisory Authority, and Bjorn Risinger, director of the Swedish Environmental Protection Agency. In an open letter, both numbers say that there is simply too much energy being used in the crypto mining space and that use has increased by about 700%.
If we allow extensive mining of crypto assets in Sweden, there is a risk that the renewable energy available to us will be insufficient to cover the necessary climate transition that we must make.
One of the main topics the letter addresses is the “proof of work” issue, which is currently used by most mining companies. This process involves bringing the power of the computer to solve mathematical equations that ultimately validate every transaction that takes place on the blockchain. The more powerful the computer, the greater the chance for the miner to validate and obtain the encryption.
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