Why keeping Bitcoin mining in the US helps the economy and national security – and even the environment
Bitcoin mining exists primarily to build a global digital network to store value without the need for a bank or other intermediary, and for peer-to-peer exchange. It is also one of the most environmentally friendly industries in the world.
The Cambridge Center for Alternative Finance estimates that global Bitcoin mining uses less than 0.2% of the world’s energy production – roughly comparable to all US refrigerators and far less than data centers and computer networks in general.
In other words, it uses a very small amount of energy overall – and nearly 60% of what it uses comes from renewable sources, according to data published by the Chamber of Digital Commerce. Bitcoin mining also helps create a marketplace for intermittent sources such as solar and wind during off-peak hours.
Furthermore, unlike other data centers, mining facilities can shut down at a moment’s notice during high demand events such as extreme weather to provide grid stability and prevent the use of fossil fuel-powered peak facilities.
Yet today’s administration, fringe politicians, and environmental groups are dragging out Bitcoin mining by trying to limit access to energy and impose or propose taxes so high that the industry will someday have reason to leave the United States entirely. And that’s assuming they don’t try to ban it altogether.
These critics now cite “marginal emissions” data, which is just cherry-picking companies they don’t like for political reasons, saying these companies use too much energy. To be clear, Bitcoin mining does not emit anything – it requires computers that consume electricity just like any other data center.
To say that these policy proposals and their tortured justifications are flawed would be the kindest reading. Their effects would be devastating to the environment, the economy, and US national security.
Compared to other leading Bitcoin mining jurisdictions, the US has an extremely clean energy grid. Texas is a leader in Bitcoin mining and home to Riot Platforms’ operations, the largest Bitcoin mine in North America. According to the American Clean Power Association, Texas led the nation in renewable energy capacity added in 2021 — nearly three times higher than second-place California.
Pushing Bitcoin mining offshore, under the guise of environmentalism, will only mean that the US will capture less of Bitcoin’s value, and more mining will happen connected to dirtier energy grids in more hostile parts of the world. For example, Russia is notorious for not only fossil fuel production and its use of energy for political brinksmanship, it is among the world leaders in leaking methane into the atmosphere. It is already among the top five Bitcoin mining jurisdictions and is seeking more market share. Weakening the US Bitcoin mining industry would be a huge gift to Russia – and increase global carbon emissions.
That leads to the national security issue. As noted in a recent Justice Department report on cryptocurrencies, America has strong anti-money laundering regulations and ensures that when people move Bitcoin value from the network into and out of traditional accounts, it can be tracked – nefarious actors can be caught, unlike to other parts of the world. Russia, for example, is a world leader in ransomware attacks and abuse of cryptocurrency, as well as traditional financial intermediaries. Keeping Bitcoin mining in America means that more value will be captured by highly regulated American companies and law-abiding individuals who are only interested in options when it comes to storing and transferring value.
Bitcoin mining has created thousands of jobs. Riot alone employs roughly 500 people, many in Rockdale, Texas, a community that previously suffered from the closure of a large industrial aluminum smelter. Riot is now helping to support a program with Texas State Technical College to upgrade the local workforce with programs in computer repair and programming.
Bitcoin mining is a growing industry that is good for the environment, the economy and national security. Attacks by malicious political forces should be repelled to maintain America’s leadership role in the digital economy.
Jason Les is the CEO of Riot Platforms, Inc., the largest publicly traded Bitcoin mining company in North America by market capitalization. Brian Morgenstern is Riot’s head of public policy and was a senior advisor and deputy assistant secretary of the Treasury from 2017 to 2020. The opinions expressed in Fortune.com comments are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
This story was originally featured on Fortune.com
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