Sweden’s state-owned power company defends Bitcoin Mining
In a joint statement, the directors of Finansinspektionen and the Swedish Environmental Protection Agency have demanded a total ban on proof-of-work mining of cryptocurrencies within the EU. However, Sweden’s state-owned power company has publicly come to Bitcoin’s defense and claimed that it can potentially balance the load on the electricity networks.
According to statement, crypto miners have become interested in the Nordic region due to the easy access to renewable energy it provides. The statement added that crypto is not in Sweden’s interest because the country “needs the renewable energy that manufacturers of crypto assets target for climate change.” It is also needed for the country to be able to meet the Paris Climate Agreement’s goals.
The statement went on to explain, “Energy-intensive extraction of cryptocurrencies should therefore be banned.” It also described the supposed social benefit of crypto as “doubtful”.
The statement called on the EU to ban proof-of-work mining throughout the region. The statement concluded, “A ban on the proof-of-work mining method in the EU could be an important first step in a global development towards increased use of more energy-efficient crypto-mining methods. It would also mean that our renewable energy is used as efficiently as possible to support the transition to climate neutrality. “
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Cryptomining support
Vattenfall, Sweden’s state power company, has pointed out that crypto mining is not necessarily a problem. In fact, the company has pointed out that it has the potential to be a solution to some of the challenges facing energy producers.
Vattenfall’s head of Physical Power Management, Henrik Juhlin, said that cryptocurrency mining is an ideal way to balance the load on the electricity networks, especially when the power supply varies. This is currently the case in Sweden and all countries that are dependent on renewable energy sources.
Juhlin said:[The crypto miners] can both reduce and increase their consumption [of energy]. It can act as a buffer, so to speak, for the production of energy. ” He went on to explain that miners can consume electricity when there is a surplus and turn off their machines when there is a shortage of electricity. This makes it an effective tool for network management.