Two of the major regulators of Sweden have been concerned with the mining process, particularly with regard to high consumption of electricity. The regulators have therefore urged EU to impose a ban on crypto mining in the region. They believe that by banning mining operations in the region, Bitcoin miners will be forced to look for energy-efficient sources which would then be favorable for the regional as well as for the global climate.
Cryptocurrencies are still a myth comprised in encrypted codes for the majority of the world. But those who have busted this myth are into the competition where there is reward for the winner as well as for the loser. This is the reason why there has been huge joining of digital asset industry on the part of the individual and institutional sector. But there is a big question mark with regard to crypto and that is linked with the crypto minting process called “mining”.
Since day one, when crypto came into being, it required high-performance computing machines to mine cryptocurrencies. Usually, they are computers but in order to enable them mine crypto, they are loaded with advanced equipment, also known as mining rigs. The whole process of mining crypto thus requires huge energy source. For instance, one mining rig utilizes the electricity of ten residential houses. So the mining process is not at all cost effective and therefore too much expensive. However, considering the profits earned by miners, the cost of electricity is almost to none.
Yet, it has been seen in the recent times that in many countries, the Governments there are facing electricity crisis. The reasons for the crisis are none other than but hosting too many mining facilities in the countries. Although Governments usually keep on building electricity capacity, yet against mining operations, they couldn’t do a lot. On the other hand, more power would mean polluting the climate further.
Considering this backdrop of mining operations, Sweden has come to believe that mining has to stop once and for all. Being part of the European Union (EU), Sweden has taken up its case before the EU where it is urging EU to ban mining in the region. The concerns from Sweden were disclosed by the environmental and financial regulators of Sweden. The officials from both the regulators have come together in recording their protests against mining activity.
The two Swedish departments are insisting upon EU to prohibit electricity consumption by the miners in the region. They have claimed that Europe is becoming a mining hub for global miners. In addition, the migrating miners from China too are settling into the region. This has caused huge electricity consumption in the region, which the region hasn’t ever seen before. On the other hand, environmental hazard caused by extra electricity generation is endangering the regional and global climate. They have urged that if ban is imposed then miners would have no other choice but to come up with energy-efficient source.
In response, EU has said that it cannot impose a ban altogether otherwise there will be legal consequences.