RoboticsOnline (reviewed here) has recently added an article about the criticism towards the king of crypto currencies – Bitcoin from the Swedish Central Bank. Could this be a small brick of the wall of the downward pressure that the main crypto coin got this month together with panics about LUNA scam and few other cases..? Sooner or later the whole pazzle must be constracted..
Swedish central bank critics Bitcoin citing high energy consumption
- The Swedish central bank has advocated for a ban on PoW mining
- The institution noted that PoW mining consumed a high amount of energy
- The Riksbank report has been criticized by the Bitcoin community
The Bitcoin network runs on a proof-of-work consensus. PoW has been criticized for being energy-intensive, and the latest criticism on the matter has been shared by Swedish central bankers.
A recent report by Riksbank advocated for a ban on Bitcoin mining in Sweden because of the high amount of energy consumed by the PoW consensus. Bitcoin supporters on Twitter were quick to react to this report.
Sweden’s central bank advocates for a PoW ban
PoW has been under attack globally, with different institutions and governments calling for a ban on Bitcoin mining. The Swedish central bank, also known as Riksbank, has now said that energy-intensive crypto mining activities such as Bitcoin mining should be banned.
Riksbank is one of the oldest central banks globally. The released report titled “Cryptocurrencies and their impact on financial stability” said that the bank was condemning the PoW cryptocurrency mining system. PoW mining involves installing data centers that need an ample supply of energy.
Riksbank’s report said, “Recently, some extraction of crypto assets has been established in northern Sweden, where it consumes as much electricity as 200,000 households do on an annual basis.”
The Riksbank report has also cited previous studies by the environmental agency and the Swedish Financial Supervisory Authority, a regulatory body for financial markets in the country. According to the bank, PoW mining “should be banned in favor of other, less energy-intensive methods.”
Crypto Twitter reacts
The crypto community on Twitter was quick to react to this report. Knut Svanholm, who has authored a book on Bitcoin, said that a central bank did not have to educate people about what they can do with their electricity. He further noted that central bank operations also affected the environment.
Svanholm further added that “Bitcoin mining is guessing a number over and over again. […] As so many other Swedish institutions have done before them, they [the central bank] choose to comment on something that they don’t understand and have no business having even an opinion on.”
The report comes amid the growing adoption of Bitcoin in Sweden. The country is home to several Bitcoin startups. Besides, Svanholm, the founder of the BTX Bitcoin exchange in Sweden, also refuted the report. Other Bitcoiners in the country have also called out the central bank. Svanholm even shared a video on YouTube illustrating that Bitcoin mining energy is not wasted.
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