There is a report in the New York Times that highlights the high environmental costs associated with Bitcoin mining. The company “Riot Platforms” refutes these claims and posts a video that is supposed to prove: mining doesn’t produce CO₂. Many observers shake their heads, but the crypto fans rejoice, hoping for high profits.
This is the situation:
- Bitcoin is a virtual currency whose value has fluctuated greatly in recent years. An accusation against Bitcoin: it is harmful to the environment, as the creation of the virtual currency consumes an extreme amount of energy. A virtual currency consumes real resources.
- In the last 3 months, the value of one Bitcoin has increased by 32%, currently standing at $27,453.
- Cryptocurrencies regained popularity in April 2023 after a new banking crisis was emerging in the stock markets over recent weeks – ironically, the decline of the crypto hype played a part in this crisis. At the end of 2022, a large crypto exchange went under.
Many see cryptocurrencies as a defining trend of the future, where we can take a look at the future of gaming:
Company accuses newspaper of painting a “false and distorted” picture
What bothers the company? The company “Riot Platforms” (market value: $2 billion) is upset about an article in the New York Times from April 9: “The real-world costs of the digital race for Bitcoin.” (via nyt)
The company says: During a new banking crisis, Bitcoin is the urgently needed alternative to store value. Mining would also bring jobs and taxes, especially in rural areas. That’s why they are so disappointed to see a “false and distorted” view of their own company and industry (via riot).
“To clarify, our Bitcoin mining operations do not produce greenhouse gases, just like other data centers from Facebook, Amazon, or Google – but we have been singled out. Our data centers use power directly from the Texas grid, which is the cleanest grid with the most renewable energy in the entire USA.”
Furthermore, they accuse the New York Times of having its own interest in discrediting cryptocurrencies. They would be against the “decentralization of authority.” The author is supposedly politically motivated.
The Times wrote: Riot uses 96% fossil energy. However, the power grid in Texas has approximately 24% wind, 10% nuclear, and 4% solar. Additionally, they operate only in rural areas, where there is an extreme amount of wind and water – otherwise, the energies would be wasted.
Riot leaves out,
- that the energy mix in Texas consists of more than half fossil fuels (42% gas, 19% coal)
- that the renewable energies used for crypto mining could also be used for other purposes to save fossil energies,
Video aims to prove that Bitcoin doesn’t produce greenhouse gases
What is the absurd result? To prove that Bitcoin mining causes no emissions, they actually released a video in which a man walks outside in Texas with a measuring device and measures the CO₂ level. Everything is in the green zone.
Afterwards, he goes into the server room, measures the CO₂ level there too, and says: Everything is fine here as well.
A clear proof that mining does not cause CO₂.
What are the reactions? On the site PC Gamer, the author repeatedly questions whether the company takes the video seriously or if it is 9 days late with the April Fool’s joke.
The CO₂ level should actually be measured at the plants generating the electricity that powers this massive Bitcoin farm and not the level on-site.
The man in the video seems to believe: crypto mining is basically like a car, and one can measure how much pollutants come out of the exhaust pipe. If there’s nothing, then the whole process must be clean. But crypto mining is connected to a power grid and doesn’t run by itself.
In the comments under the video, many apparently in disbelief remark:
- “It really hurts to watch this. The computer power and resources being wasted by these geniuses to mine Bitcoin. Humanity is doomed.”
- “Please next: Put your wallet next to the machine to see if real money is being generated.”
- “Just when you thought crypto bros couldn’t be dumber.”
How do crypto bros react? Under the tweet from Riot about how wrong they find the New York Times article, there is a cheer. Many active on Twitter, who have invested in cryptocurrencies and expect profits:
- People praise Riot there, stating they are “fact-based, proactive, and transparent.”.
- They ask whether they will sue the New York Times for defamation.
- Additionally, they accuse the newspaper of “spreading lies about Texas.”.
In fact, the stock of Riot Platforms has risen by 102% in the last month.
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