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Swedish regulators propose to ban mining Bitcoin (BTC) and other cryptocurrencies

Fri 12 Nov 2021 ▪ 21h09 ▪ 3 min read — by Susan McCormack

Crypto mining is one of the environmental problems that the global community faces today. Annually mining alone consumes more electricity than the Netherlands and the figures are still growing.

union européenne wallet

Paris Climate Agreement

Recently, the Swedish authorities have called for introducing a ban on BTC mining in the EU.

Erik Thedéen, the head of the Swedish Financial Conduct Authority, and Björn Reisinger, the head of the Environmental Protection Agency, stated that the growing energy consumption threatens Sweden’s ability to comply with the Paris Climate Agreement.

From April to August 2021, Bitcoin mining gained popularity in the country, causing Sweden’s electricity consumption to rise by “several hundred per cent”. The amount of energy spent in Sweden on mining is enough to provide 200,000 households.

Thedéen and Reisinger believe that the environment will benefit from banning crypto mining. They have also highlighted that companies trading cryptocurrencies or investing in digital assets should not be considered environmentally sustainable.

Mining boom in Europe

Such statements are not new for the crypto community. Back in September, China prohibited any crypto-related operations, forcing the majority of Chinese crypto investors, including miners, to move to Europe, where they found lower energy prices and renewable electricity reserves.

The amounts of renewable energy spent on crypto mining could have been used in other industries serving for better purpose.

“It is currently possible to drive a mid-size electric car 1.8 million kilometres using the same energy it takes to mine one single Bitcoin. This is the equivalent of forty-four laps around the globe. 900 bitcoins are mined every day. This is not a reasonable use of our renewable energy”, noted Thedéen and Reisinger.

Many cryptocurrencies have long been using less energy-consuming ways of mining. Ethereum (ETH) plans to join the list by the end of 2021, while Bitcoin developers have not yet expressed a desire to switch to more environmentally-friendly technologies.

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Susan McCormack avatar
Susan McCormack

How many crypto nerds does it take to fork an altcoin? I may be a failed comedian, but crypto is no joke! I want to share my knowledge and help others to see the bright future ahead. #buybitcoin

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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