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Home»Blockchain»Sweden Says Bitcoin Miners Are Not Creating Jobs Despite High Energy Demands
Blockchain

Sweden Says Bitcoin Miners Are Not Creating Jobs Despite High Energy Demands

July 18, 2022No Comments3 Mins Read
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Swedish Energy Minister Khashayar Farmanbar disagrees that giving power to Bitcoin miners Is doable. Farmanbar said it is better to give energy to job-creating projects such as steel mills.

Sweden Prefers Steel Projects to Bitcoin Mining

In a Bloomberg interview, Farmanbar said that it is better to use energy for useful activities instead of using it for Bitcoin mining. According to the official, steel mills have created more jobs than Bitcoin mining sites.

Bitcoin mining operations have been criticized by many countries around the world due to their energy-intensive nature. The Bitcoin network is secured by a proof-of-work algorithm that has been reviewed in several countries due to high energy demands. The Bitcoin network also relied more on electricity than human labor.

Bloomberg’s report noted that the Swedish government has paid close attention to crypto mining operations. Last month, the government mandated the Energy Agency to monitor and report on the amount of energy used to support digital infrastructure, including cryptocurrency mining.

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The Minister of Energy did not mention the measures taken to reduce crypto-mining. However, the report hinted that one of the steps that could be taken was to change the way power is allocated to new users. Those who create more jobs would have preference for access to the electricity grid than those who do not.

This is not the first time Swedish regulators have been skeptical of crypto mining activities. In November, regulators in the country pushed for a ban on energy-intensive cryptocurrency mining. Earlier this year, the vice-president of the European Securities and Markets Authority expressed similar concerns.

Mixed reactions to crypto mining

China banned cryptocurrency mining last year. Prior to this ban, the country ranked as the world’s largest Bitcoin mining hub, dominating the network’s hash rate. The ban forced many miners to migrate to other countries, and the United States is now the largest Bitcoin miner.

However, the popularity of minors in other jurisdictions has not been without its problems. New York senators recently passed a bill banning Bitcoin mining for two years. However, other states, such as Texas, have embraced Bitcoin mining due to the abundance of renewable energy sources.

British lawmakers had also proposed a law banning PoW mining. This law was not implemented because it was not passed in parliament after being annulled.

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