US Senator: “Don’t Judge Bitcoin Mining, there is a lot of Innovation Going On that Proves Otherwise
In his comedy special Equanimity, Dave Chappelle gave a fascinating analogy about first impressions.
When you stand too close to an Elephant, all you can see is its wrinkled skin.
You might actually miss the elephant in front of you. Once you take a step back you get to see the full size and uniqueness of the elephant.
That is one thing about perspectives. They are often incomplete.
Bitcoin mining has gotten a bad rap in recent times. This faux outrage is because some get the single perspective that Bitcoin mining is terrible for the environment.
U.S. Senator Offers A Nuanced View of Bitcoin
Senator Cynthia Lummis of Wyoming is something rare, an elected politician at the Federal level who seems to understand Bitcoin.
Admittedly, this innovation is relatively new to the general public. That said, it has not prevented some from being outspoken against the asset. The criticism has gone to the highest level, with personalities like Bill Gates taking shots at Bitcoin.
In the Financial Advisor Summit, Senator Lummis pointed out that 40 percent of Bitcoin mining already uses renewable energy. Such clarifications are few and far between in mainstream discourse. The State of New York is even considering banning Bitcoin mining for five years.
Notably, the non-Bitcoin mining economy only uses about 12 percent of energy from renewable sources. Senator Lummis also highlighted the use of freshly-drilled natural gas to mine Bitcoin in her state, an innovative way to utilize the resource that is usually a by-product of oil mining.
Her general point is that Bitcoin is an asset with multiple dimensions. There is a high amount of innovation from Bitcoin miners to try and make their processes more efficient. The use of renewable energy is often understated because the main narrative that Bitcoin has a high carbon footprint is more convenient for some.
Taking a Deeper Look at Bitcoin
Senator Lummis has gone all-in on Bitcoin.
She even endorsed the idea of people investing in Bitcoin for retirement. Bitcoin is a versatile asset with multiple uses. That said, its capabilities as a store of value asset take precedence. Despite constant volatility, there is an upward trajectory over the long term. It was one of the best-performing assets in the last decade.
Such long-term appreciation has traditionally been viewed to be the preserve of stocks and bonds. Bitcoin is changing the game fundamentally.
Senator Lummis revealed that she owns five Bitcoins, which should be worth over $170,000 at press time. Her belief in crypto, therefore, is not only in words but also in action.
Bitcoin is a unique asset for investors. Its prices don’t necessarily correspond to stock markets. This quality is helpful for people who wish to diversify their portfolios. The essence of diversification is to get assets that differ in their price movements and fundamentals.
Traditionally, investors have used gold as their favorite hedge asset. Gold is great but presents many logistical challenges. The primary disadvantages are its bulk and security needs in storage.
Bitcoin works like digital gold. The beauty of this asset is that it appreciates even faster than gold. Additionally, its digital nature means that the owner does not need to worry about storage and transportation logistics.
Therefore, Bitcoin can be an excellent addition to your portfolio. Some financial firms are even offering Bitcoin 401k accounts. This world is far more sophisticated than the average person would imagine. Note that the IRS classifies Bitcoin as property, and capital gains taxes are applicable.
Lummis is an exception to the rule. Most American politicians would rather talk of short-term re-election issues than look at the exciting innovations taking over the world.
Now back to the energy issue.
Renewable Energy and Bitcoin
Senator Lummis has even invited miners to the state of Wyoming.
There are salient features about this state that most Americans would know. It has a small population and mostly cold weather.
Therefore, Bitcoin miners and the state could benefit symbiotically. Wyoming needs more investors in its relatively small economy.
Miners need a locality with abundant cheap energy, little regulation, and the cold weather provides a bonus. Win-win.
The fact that Bitcoin already uses more than twice the percentage of renewable energy of the non-Bitcoin mining economy is an inconvenient fact for some. That does not negate its significance. In fact, Bitcoin is a trailblazer. +
Wyoming is an energy-rich state. That is the story of many states in Middle America that took the brunt of the manufacturing exodus that hit the region for decades.
Bitcoin miners are even using mobile mining facilities to utilize gas before pipelines get to newly-drilled wells.
In Lummis’s own words, labeling Bitcoin ‘an energy bad guy’ is misleading.
The Race to Attract Bitcoin Miners
Accordingly, the race to attract Bitcoin miners is well and truly on.
Miami mayor Francis Suarez is another politician who has publicly welcomed miners to his state. His pitch focuses on the fact that the area has nuclear power, which produces high amounts of electricity without carbon emissions.
American states are viewing Bitcoin miners more favorably today. Their ability to utilize cheap electricity even in remote areas provides tax revenue for these regions.
Wyoming and many other states could use the investments and extra income as they rise again after the Coronavirus-induced downturn.
China has long been the dominant mining region in the world. However, the Chinese government decided to crack down on cryptocurrency mining, triggering an exodus of miners from the area.
The provinces of Xinjiang, Inner Mongolia, and Sichuan were some of the most notable mining regions. However, should government policy continue to harden, there could soon be no mining operations in these areas.
The shortfall presents a unique opportunity for international miners. This crackdown comes at a time when Bitcoin prices are impressive. Despite a significant fall from peak prices in March, prices above $30k are still massive for miners.
The North American continent is in a prime position to take over. Not only are more politicians warming up to crypto, but the region also has favorable conditions for miners.
Chinese miners seeking to mine abroad find a natural destination in North America or Northern Europe.
VBit Mining Is a Pioneer in Renewable Energy Mining
Long before outrage over Bitcoin’s electricity consumption became a thing, VBit Mining had decided on renewable energy as the standard for mining. The conditions were right and made business sense.
We offer hosting facilities in our data centers in Colorado which utilize cheap renewable electricity and natural cooling. Prospective Bitcoin miners can use our hosting services to mine Bitcoin sustainably.
Additionally, we offer equipment reselling services. Sourcing quality Bitcoin mining equipment is tough with the level of demand in the market.
Manufacturers like Bitmain will always prioritize industrial-scale orders from large manufacturers.
A person could be tempted to purchase older Bitcoin ASIC rigs from sites like eBay. This decision can prove costly because anytime mining difficulty goes up, older equipment goes out of business.
We are proud of our direct line to Bitmain. This line allows VBit Mining to source top-tier S19 Antminer rigs that can mine competitively.
Visit VBit Mining Shop today to learn more about Bitcoin mining!