Crypto mining won’t survive another round of environmental legislation
It was only a matter of time before China slapped a ban on Bitcoin (BTC) mining, trading and crypto services. To do anything with Bitcoin anywhere in the People’s Republic, one needs a special exemption. The Chinese government’s given reason for the Bitcoin crackdown is to reduce its well-documented climate impact. Regardless of the amount of truth in this explanation, one thing is clear: China’s righteous anger toward electricity-guzzling and carbon-spewing mined cryptocurrencies in the service of Earth’s climate is only the first shot in an impending global showdown over Bitcoin and other crypto projects that rely on proof-of-work (PoW), the complicated crypto security mechanism we subsume under “mining.” This does not seem like a battle crypto can or will win.
For many cryptocurrency enthusiasts who are holding Bitcoin, this is a difficult realization to face. Luckily, there is a helpful parallel, and it even has the same name: coal mining. Coal is on its last legs because there are cleaner, cheaper, more efficient and more technologically advanced alternatives.
Related: Carbon-neutral Bitcoin? New approach aims to help investors offset BTC carbon emissions
Admittedly, coal isn’t going down without a fight, backed by monied corporate lobbies and powerful politicians often amenable to generous campaign donations. Even so, if your financial adviser told you he had a really good feeling about investing in coal, you would probably get a new financial adviser. For similar reasons, it might be time to accept the fact that mining, from coal to crypto, might soon be a relic of the past.
A combination of inertia and hesitation to quit mining have temporarily cushioned the full impact of China’s war on Bitcoin. After the initial
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