Austerity and priorities – The mining of Bitcoin (BTC) in Sweden could fall victim to the energy crisis, which has met European industries under pressure.
Sweden: Bitcoin is not a priority
The Swedish Minister of Energy, Khashayar Farmanbar, went straight there: “ We need energy for more useful things than bitcoin, to be honest “.
While the terms energy sobriety no longer seems taboo in this context of crisis, the minister wants the Swedish government to provide energy support to sectors in which the country excels, such as steel production, at the expense of Bitcoin.
The miners who have taken up residence in Sweden, to take advantage of the renewable energy produced by the country’s hydroelectric reservoirs and giant wind farms, have thus revealed themselves in the list of Next potential victimsof the standoff between Russia and the allies of Ukraine.
A steel reputation in the balance
the Bitcoin or steel: on paper, however, this decision should not be a dilemma for the Swedish government.
Cryptocurrency does not weigh ahead of the country’s steel industry, and its 4.4 Mt of raw high quality steel per year. A “useless” Bitcoin cannot de facto, even claim the title of challenger, to a Swedish steel widely used in automobile construction.
But Bitcoin isn’t just losing the mach of utility value. He also bows on the ground of ecology. In the collective imagination of many people, the extraction of cryptocurrency is particularly energy-intensive, and thus contributes significantly to global warming.
In the face of a dirty Bitcoin, a clean Swedish steel industry can only shine. The efforts made by the authorities after 2013 to reduce the sector’s energy consumption have borne fruit. The energy demand for steel production has decreased almost twice.
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Energy-intensive mining: far from being an isolated case!
These discouraging perspectives on the future of mining Bitcoin in Sweden, have, unsurprisingly, brought the ardent defenders of the industry out of their silence.
Sukesh Kumar Tedla, president of the Swedish Blockchain Association, evokes a “need for more education and awareness”, for several officials, including the Minister of Energy.
To defend Bitcoin mining, he preferred subtlety to a frontal attack. Sukesh Kumar Tedla does not dispute the energy-intensive nature of mining, while verifying that ” this is also the case for many other innovative technologies “which contributes to the proper functioning of” our society “.
These proposals from the Swedish Minister of Energy, in the current context, the long way Bitcoin mining still has to go, to gain enough legitimacy. Cryptocurrency mining may save the world in 2035, but it is for the moment perceived as a prejudice which burns the planet.
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