Since June 15th, Bitcoin has fallen by nearly $10,000. Currently, the broader crypto market is suffering a terrible blow.The two sides have divided the victory and the battle line has been drawn: this is a developing country Savior with Tanzania To the World Bank. As these countries try to empower and liberate their people through blockchain, regulators are trying to slow down the process.
Strict supervision is imperative
This is not to say that this is all because some ancient institutions want to keep their power. The concerns of the World Bank and the International Monetary Fund are reasonable. Regulators have expressed a strong desire to mitigate the negative effects of decentralized finance. Fraud, money laundering and funding suspicious activities are all very worrying issues.Since October 2020, 7,000 investors have reported losses totaling US$80 million According to the Federal Trade CommissionWhile it is possible to track the trafficking and funding of terrorist organizations when it comes to banks, wire transfers and even cash, when it comes to cryptocurrency, the process becomes more difficult.
The other elephant in the room? Emissions from the electricity required for Bitcoin mining. Most of the bitcoin miners in the world are in China, and now the country is banning cryptocurrencies and they must find new places to open stores. The good side of the environment? China’s coal consumption in 2019 was 1,951 metric tons of oil equivalent, four times the amount in 1990. In 2019, coal Accounted for 57.7% of China’s total energy use.
This problem caused Elon Musk to stop selling Tesla (NASDAQ: TSLA) cars in Bitcoin. Taking the unsustainable energy consumption of Bitcoin mining as an example, Elon’s tweet in May dealt a heavy blow to Bitcoin’s market value. Bearish sentiment is dominating, and even large investors like Mark Cuban are calling for stronger supervision.
The environmental impact of crypto mining is now being felt because the electricity used for mining comes from non-renewable energy sources in many high-density mining areas. It is estimated that Bitcoin mining consumes more energy each year than the entire country of Argentina and Sweden.Although this may seem bad, it may actually be a very large opportunity.
Hopeful: Bitfarms (NASDAQ:BITF)(TSXV:BITF) approved for listing
This leads us to the topic of the conversation: ESG in Bitcoin mining. A company that has just been listed on the Nasdaq. Bit farm (NASDAQ: BITF) (TSX: BITF) was approved last month and officially started trading on NASDAQ today. Why is Bitfarms (NASDAQ:BITF)(TSXV:BITF) so important?
It is a Canadian Bitcoin mining company headquartered in Quebec. The company operates 5 facilities in the province, each of which is powered by hydroelectric power. The company’s Sherbrooke facility is divided into two parts with a power capacity of 30 MW. According to the Bitfarm (NASDAQ: BITF) (TSX: BITF) website, the company’s 100% hydropower operating cost averages $0.04/kWh. Currently, the stock is trading at $3.96 on Nasdaq. Due to the massive cryptocurrency sell-off, its issuance fell by 8%.
Bitfarms (NASDAQ: BITF) (TSX: BITF) is a company positioned at the right time and place.Based on their initial success, the company’s Vertical integration The business model will be re-examined when the sustainability of Bitcoin mining is launched in the future.
Imagine walking into a house for sale, but it is on fire. Then say, “Oh, can I do this?” This is what sustainable Bitcoin mining companies are doing. The cryptocurrency market is taking a huge hit, but starting this morning, it has actually started to rise! As China’s Bitcoin migration continues, more and more miners are selling assets and will have to relocate to other countries. These new homes may be different from the People’s Republic of China’s view on energy consumption, so this may mean vigorously promoting environmental governance of Bitcoin mining from now on.
Featured image from Bitfarms.com