Topic: [2018-03-12] No Legal Basis to Ban or Limit Bitcoin Mining: EU Official (Read 146 times)

Show me a connection between depleting oil reserves and POW cryptocurrencies
I have one thing to say to all those POW complainers out there: look at yourselves and your daily use of electricity! Do you remember to unplug your devices after use? Do you remember to turn off the lights when you leave the room? How do you contribute to the increasing use of power. How would you react if they told you that you're banned from using more than 1 pc and, 1 phone, 1 fridge per apartment because there are limits?

Fwiw, to put in global context the amount of industrial mining going on in the EU a year ago

https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2017-04-20-global-cryptocurrency-benchmarking-study.pdf

It seems to me that electricity production is a part of the economy of any country. No one has canceled the development of technologies that allow you to save energy consumption and create technologies that allow the use of renewable sources. But if miners help create jobs and fill the economy with money, why limit them?

This is one of the biggest crisis associated with crypto currency . The consumption of energy is way more than it is expected and accepted by the government of the country . Using renewable resources is always given a choice by the people but that would again cost too much and so much cost will be used in the coolants as well making the process more expensive than it was before . Other than that they should go fro the places with cool weather where they can atleast reduce the cost of coolants and the focus is entirely in using the resources and expenses in renewable resources of energy.

This is definitely a good news for all cryptofans. Awesome to hear that there is no chance to ban something what gives a chance to gain money without going to the office every day =)

I believe that the government should step in and regulate the energy expenditure of bitcoin miners should the allocation of the available electricity for the said enterprise tips the balance towards the minority energy users whose consumption is augmented by mining. Electricity is a necessity for most households and a lot is dependent on it. The interest of many should always be the government's main concern in situations that affect the general population.

This is of course true, my bad, should read "Europe", which I suppose makes any discussion about Iceland off topic in this particular thread anyway.

It is an interesting subject nonetheless, as until the arrival of Bitcoin mining as a major consumer of electricity Iceland's choices of what to do with their non domestic generating capacity were restricted to aluminium smelting or potential export to the UK via cable.
Electricity production increase is not quite as cheap, or straightforward, as it may appear.

http://www.thinkgeoenergy.com/opinion-aluminium-and-electricity-export-might-not-what-should-matter-for-iceland/

also read the linked report.

Iceland is not an EU member



Bitcoin is meritocratic, regular Icelanders stand to benefit from mining themselves when they mine Bitcoin in their homes or as a small business, so regular people are less likely to see it as a "them and us" situation.

Also, Iceland has a huge amount of untapped geothermal energy, so if energy shortages began to affect energy costs for Icelanders, there would be more than enough investment capital available to pay for new capacity for geothermal electric production. It makes far more sense to encourage a growing, profitable industry than to stifle it, particularly as Iceland is so well suited to cryptocurrency mining.

Although this is about the EU in general, as Iceland hosts a significant proportion of EU based mining it's worth looking at separately as it's a unique situation.
I have visited Iceland recently and gazed thru the razor wire at huge data centers.
Going by their car park size and general activity, I'd say security guard jobs are probably the only spin off for the local community who, in response to small talk, gave the impression that Bitcoin mining is regarded as something done by "them", as in foreigners.

Iceland has a population of around 330,000, with no noticeable special interest in Bitcoin that I found, which translates into very few likely home miners.
Although not xenophobic, that small population has a community approach to the outside world and a distrust of magick financial maneuvering of the sort which reeked especial havoc with their economy in the global crisis ten years ago.
As a whole, they do not resemble the hip young cosmopolitan Reykjavikers depicted in the media quaffing $10 lattes and snowboarding. The general air is pragamatic and utilitarian, which I believe would make them amenable to taxation of energy extraction for crypto mining, if only to reduce their high personal taxation levels.  
Although the leverage games played by banks and the crypto industry are qualitatively different, it would be understandable for Icelanders to lump them together as uncontrollable and with potentially highly negative influences on their country, not least crime associated with it, whether money laundering or more prosaic, like...

 https://cointelegraph.com/news/culprits-apprehended-in-alleged-icelandic-bitcoin-miner-theft

Electricity in Iceland is very close to 100% renewable, so your argument makes zero sense.



Local people can mine BTC just as easily as mining farms can. The overhead costs for being a home miner are far lower than those of a mining farm. This is probably already the case in Iceland, the people there have struggled with a weakening currency for many years, and so are probably not totally averse to risk in cryptocurrencies when they take such risks with the Icelandic kroner every day.

I do not think that the problem of using electricity for bitcoins is so great for the European Union. In Europe, various projects of renewable energy sources, such as the boundless energy of the sun and wind, are very much being introduced. If we continue to work in this direction, the problem of shortage of electricity will be solved.
In general, this is quite good news that the EU is not going to limit or prohibit the production of bitcoin on its territory. Recently, various EU bodies demonstrate a loyal attitude to the crypto-currency against the backdrop of the European Court's decision on the legality of using crypto currency as a means of payment and certain tax privileges.

Governments will put up with many things if they bring tax revenue.
Although the Pirate Party is only small and would superficially be thought to be supportive of disruptive technologies like crypto, they have opened that conversation in Iceland.


Genesis don't like the idea, surprise, surprise, but come up with a weak response.


https://apnews.com/a6cd50b37105447991be9a9ce76c2421

This is the reason why governments should not just be mum about issues concerning cryptocurrencies. It is high-time for them to step up and promulgate laws to address it alone because we have to accept that the laws of the land have loopholes and therefore it needs to be strengthened by coming up with laws that are at par with times. Laws cannot remain stagnant over a period of time because day by day there are rapid changes that are going around that need to be carefully regulated as it affects human populace in general.

I heard that in Iceland, the consumption of electricity for mining is greater than the electricity consumption for their whole household residence. The government has not done anything for this but I think that a more sustainable and efficient way of mining should be discovered. Electricity uses up non-renewable energy and unless something will be done, mining is going to hurt the environment.

Miners are able to benefit from the cheap resources and climate of Iceland however the locals within that area may be affected badly. The price of electricity will surely get affected someday and having to pay for an increased price would be unfortunate for them especially for those who may be only low income earners.

I do largely agree, but the main point of importance is that if miners massively flow into Iceland to set up their operations, they will basically be responsible for consuming far more energy than the country currently consumes, and that within its first year alone. It's not sustainable in the long term, where if the demand for power and other resources keeps increasing, and that will definitely happen, then it will be the local non crypto economy that's going to pay the price for it. Miners will have no problems paying more for resources due to the increased demand, but that isn't the case for the locals. I expect the government to draw a line at some point, because allowing miners to enter and benefit from the great climate and cheaper resources is one thing, but having your non crypto economy pay the price for it is just not fair....

After China, I think Iceland is another popular area for setting up cryptocurrency mining farms. Cheap and clean electricity, apart from the cold climate which results in low cooling costs are the primary drivers. It would be foolish to limit companies from mining using renewable energy and profiting. They might shift to areas where the electricity is not so clean, if they are forced to move out.

Yap, I think the best option is to tap those renewable energy like sunlight(solar) and wind so that we don't need to have the problem of consuming too much electricity in the future.

Although China and other countries have so much excess electricity it will not be enough if the current trend continues of using so much energy in mining bitcoin.

That's why new player GMO is already eyeing of using renewable energy in Europe for their bitcoin mining farm.

https://www.bitsonline.com/gmo-group-begins-bitcoin-mining/

It's either the world shifts to more renewable electricity or we just keep on depleting the oil reserves and make the price of electricity way up there. Or another alternative is that every cryptocurrencies move out of POW and just use POS so we all stop using excessive electricity for nothing but online money.

The European Commission has confirmed that it is paying attention to concerns about rising electricity consumption for cryptocurrency mining in the European Union, according to European Commissioner Mariya Gabriel, who oversees digital economy and society.

According to a notice on the European Parliament website, Gabriel addressed the issue in response to a question posed to the parliament.


The Commission, Gabriel noted, is aware of the concerns on growing electricity consumption for cryptocurrencies and blockchain technology in general.

The issue is especially critical for bitcoin, for which mining is concentrated in China. While two-thirds of all mining takes place in China, according to some estimates, some amount of mining takes place in other places.

There is currently no legal basis to prevent or limit energy consumed within the EU, the statement noted. But given that electrical consumption is an economic activity, it is subject to EU rules that apply to energy efficiency, the power sector and greenhouse gas emissions. Greenhouse gas emissions in the power sector are covered by the EU emission trading system.

The cryptocurrency mining business model is based on delivering a high valuation of cryptocurrencies, the statement noted. The increasing electricity consumption and cost is likely to modify the value of and demand for cryptocurrencies.

More info - https://www.ccn.com/european-commission-watching-energy-consumption-for-crypto-mining/