Despite continuing discussions regarding the impact of cryptocurrencies (particularly bitcoin) on the environment, the Bitcoin Mining Council was formally launched yesterday, June 10, 2021.
Its website states that the Bitcoin Mining Council is “a free and open community of bitcoin miners dedicated to the bitcoin network and its basic tenets.” Its main objective is to improve bitcoin awareness and knowledge, support good practices and promote transparency.
On June 10, 2021, a founding member of the council (Michael Saylor, who also doubles as MicroStrategy boss) reiterated the council’s objectives on his official Twitter handle.
Micheal Saylor Tweet. Source: Twitter
Elon Musk Has No Role in The Bitcoin Mining Council (BMC)
As of now, bitcoin miners from North America make up the majority of the group’s members. While Elon Musk suggested forming this organization via a tweet late last month, he has come out to say he isn’t playing any role at the council. The council’s website also explains this clearly, stating that:
“Elon Musk isn’t involved in any capacity at the BMC. His only involvement is to respond to a call for improved education and discussion on bitcoin mining along with other top bitcoin mining companies in North America.”
Apart from MicroStrategy, other founding BMC members are representatives from the following companies: Riot, Hive, Argo, and Galaxy Digital. These members will take responsibility for any running costs, and the group is open for membership to all bitcoin miners globally. However, the BMC website did give a little warning to all potential members stating that:
Any potential member “be convinced about the importance of reducing energy usage for mining activities. Also, they must be willing to reveal their hash rate size and energy mix for research and education.”
Group Is Independent of the Bitcoin Network
There will always be quarterly meetings among BMC members to discuss ways of improving the North American bitcoin mining industry, collect data for research and education, collaborate with industry researchers and analyze current mining topics.
The group further affirmed that it has no plan to make bitcoin centralized, and it’s an entity that’s completely separate from the bitcoin network.
“Our objective is to enhance bitcoin and bitcoin mining awareness. We are not seeking to disrupt bitcoin’s decentralization.”
The council reiterated that bitcoin’s energy usage provides excellent security for its network, making it a benefit and not a problem. However, following Elon Musk’s public opinion about the environmental effect of bitcoin, various analysts started scrutinizing the energy usage of bitcoin mining activities worldwide.
A Cambridge Bitcoin Electricity Consumption survey suggests that annual bitcoin energy usage is almost equal to Holland and the UAE. China’s hash rate has been on a decline since its government’s clampdown efforts on mining activities in the country. On the contrary, that of America is on the rise because miners can leverage cheap renewable energy available in states like Texas
This availability of renewable energy is already attracting bitcoin mining companies to the U.S. A recent example of this increased mining operations in the U.S. is the new partnership between Luxor (a mining software company) and NYDIG (a top bitcoin FinTech services firm).