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Fred Thiel, the Chief Executive Officer of Bitcoin mining firm Marathon Digital, has called on the Federal Government to incentivize miners to embrace renewable energy options to mine their cryptocurrencies.
Thiel’s comments come in an interview following the release of a report by the US government on the environmental implications of Bitcoin mining.
Known for running a mining outfit with a knack for proper and targeted transition into clean energy, Thiel said the incentivization model would arguably help stir the willingness of stakeholders to embrace clean energy.
Using his company as an example, Thiel noted that “unlike other miners who may be on the grid just sucking energy off the grid in competition with consumers, we do it behind the meter.” According to him, this relationship is “more symbiotic to the grid versus parasitic.”
The clamour behind the environmental impact of Bitcoin mining comes off as a major regulatory push for most governments worldwide. The subject is held as a major concern that the Chinese government has banned every mining and crypto-related activity, causing a tectonic shift in the mining and broader crypto ecosystem in mid-2021.
With a ‘responsible’ shift away from the environmental concerns of Proof-of-Work (PoW) mining, one of Ethereum’s reasons for transitioning into the Proof-of-Stake (PoS) consensus model through the merge is that when out last week. Thiel’s recommendation, if taken, may help to nudge miners, particularly the established ones operating in the US, to invest in clean energy.
“If you provide an incentive for miners to co-locate behind the mediator at renewable energy plants, then miners are going to move there,” he said.
To Thiel, the report from the government somehow encouraged stakeholders to look at the bright side of mining crypto with renewable energy.
He said this highlights how the regulators are beginning to warm up to the idea and importance of Bitcoin and PoW mining in general. While he acknowledges that full appreciation may take time, he believes the government is currently positively disposed to welcome sound regulation.
Image source: Shutterstock
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