On the eve of Ethereum’s transition to proof-of-stake (PoS), the bitcoin (BTC) maximalist Michael Saylor has come out against what he says is “misinformation and propaganda” about the environmental impact of BTC proof-of-work (PoW) mining..
MicroStrategy CEO, who recently stepped down as CEO, shared a lengthy post on his Twitter account on Wednesday, detailing seven of his “high-level thoughts” on BTC mining and its impact on the environment..
Given the sheer volume of misinformation & propaganda circulating lately, I thought it important to share the truth regarding #bitcoin Mining and the Environment.https://t.co/CRkayFwDsj
—Michael Saylor⚡️ (@saylor) September 14, 2022
Given the sheer volume of misinformation and propaganda going around lately, I thought it was important to share the truth about bitcoin mining and the environment. https://t.co/CRkayFwDsj
One of his key arguments was against the notion that PoW BTC mining is not energy efficient..
On the contrary, Saylor claims it is the “cleanest industrial use of electricity and is improving its energy efficiency at the fastest rate of any major industry”.
He backed up his argument with figures from the Global Bitcoin Mining Report for the second quarter of the year.published in July by the Bitcoin Mining Council, a group of 45 companies that claim to represent 50.5% of the global network, noting:
“Our metrics show that ~59.5% of energy for bitcoin mining comes from sustainable sources and energy efficiency improved 46% year over year.”
Saylor’s argument comes at a time when the BTC mining industry has come under a lot of pressure for its alleged impact on the environment.which has even led some US states to take steps to ban cryptocurrency mining.
Saylor claims that the constant improvements of the network and the “relentless improvement of semiconductors”, make mining much more energy efficient than big tech companies like Google, Netflix or Facebook.
“Approximately $4-5 billion in electricity is used to power and secure a grid that is worth $420 billion today,” says Saylor.:
“This makes bitcoin much less energy intensive than Google, Netflix, or Facebook, and 1-2 orders of magnitude less energy intensive than traditional 20th century industries like airlines, logistics, retail, hospitality, and the like. the Agriculture.”
Saylor also claimed that 99.92% of carbon emissions in the world are due to industrial uses of energy other than bitcoin mining.
looking at the numbers, Saylor doesn’t think environmental arguments condemning PoW mining are fair.
Rather, in his view, it is an attempt to “focusing negative attention on Proof-of-Work mining” and distracting authorities from the “inconvenient truth that Proof-of-Stake crypto assets are generally unregistered securities traded on unregulated exchanges”.
In one of the most high-profile legal cases at the moment, Ripple is embroiled in a lawsuit with the Securities and Exchange Commission (SEC) for allegedly conducting an unregistered security sale in the form of Ripple’s XRP.
To end, Saylor says all the negativity towards PoW mining distracts from its potential benefits to the world.
“Bitcoin mining can create a clean, profitable, modern industry that brings hard currency to remote parts of the developing world, connected only by satellite link.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.