It doesn’t seem very positive for Bitcoin and the entire cryptocurrency market at the moment. The news from China about the crackdown on Bitcoin mining has hit like a bomb. However, there are positives to be gained, said MicroStrategy founder Michael Saylor.
As things stand, people can still mine and hold Bitcoin in China, but with the government seeking to impose sanctions, mining could be drastically reduced in the coming months. Subsequently, if a complete ban comes in, it could help miners in the United States (and other parts of the world) get better margins, which they could do by using cleaner energy. The carbon impact could eventually become a non-factor as a result, while the hash rate would be decentralized.
MicroStrategy founder Michael Saylor, a respected voice in the crypto community, said in a recent tweet:
“A crackdown on miners in China would radically reduce the carbon footprint of Bitcoin mining, increase the profitability of all remaining Bitcoin miners, reduce the nagging Chinese FUD, support progress towards our ESG goals and increase the value of BTC. This would be so good for us. ”
Mining in China is polluting
China accounts for about 75% of all Bitcoin mining in the world. It is said that a fair percentage of the Bitcoin mined in the country is done through renewable energy, but many think mining would be a lot cleaner if Asian power were to get out of the picture.
Bitcoin mining is expected to consume 296.59 terawatts per hour and generate 130.50 million tons of carbon by 2024, according to research from the Chinese Academy of Sciences and Tsinghua University. The researchers concluded that emissions would surpass countries such as the Czech Republic and Qatar.
Gryphon Digital Mining is committed to green energy
An example of a company responding to the demand for carbon-friendly Bitcoin is Gryphon Digital Mining, which recently closed a $ 14 million Series A round, nearly a third of which institutional investors bought. Gryphon also has a “blue chip” board that has poached talent from FANG, Disney and NASDAQ.
The company draws power from the hydroelectric network in New York State. CEO Rob Chang told Blockworks that the company is likely in the top quarter globally for cheap electricity costs, giving it a competitive advantage for mining. He said the following:
“We can provide a 100% carbon-free renewable energy source that can still competitively mine Bitcoin. We are 100% committed to ESG, as opposed to one that just happens to be in the right place and the right time. ”
Saylor may have a point and it may well cause Bitcoin mining to become greener than it currently is. This would immediately remove all doubts from major institutions, such as Tesla Motors.