Protecting Bitcoin Mining, Self Custody is Paramount

Ryan Selkis, the Chief Executive Officer (CEO) of blockchain market intelligence provider Messari declared in his 11-thread tweet that self custody amongst other factors, is crucial to protecting Bitcoin (BTC) mining. To put it in perspective, Selkis stated that, 

“Bitcoin is 50% of the non-stablecoin market. Protecting bitcoin mining, self-custody, development, and surrounding infrastructure is paramount.”

2/ Bitcoin is 50% of the non-stablecoin market. Protecting bitcoin mining, self-custody, development, and surrounding infrastructure is paramount.

The “outside money” thesis says you should own a little bitcoin bc the US has been too reckless to trust. Own gold and digital gold.

— Ryan Selkis 🪳 (@twobitidiot) May 13, 2023

 Crypto mining has suffered serious discrimination from many jurisdictions. Several countries have frowned against the practice citing the amount of electricity consumed in the process. Last year, the CEO and co-founder of Satoshi Action Fund Dennis Porter accused the Public Utility Commission of Idaho of discriminating against BTC mining. This accusation came as a result of the special electricity rate which was approved for crypto mining facilities.

Further confirming Porter’s claim, Idaho-based mining company GeoBitmine declared that the new rates were discriminatory. 

The Public Utility Commission has hinged its decision to change the electricity rate for mining facilities on the fact that they are data centre businesses. Based on the new rate, such Bitcoin mining facilities will be subject to a 225 hours per year power cut instead of the all-year-round electricity.

Bolstering Bitcoin Mining Arguments

On the contrary, some crypto experts have argued that BTC mining could bring more good than harm if given the essential resources. Popular BTC advocate, Willy Woo clarified that BTC miners would need more energy if they intend to make a tangible impact, especially if it were to shift to renewable sources. Another BTC influencer known as Daniel Batten explained this further.

“For a renewable revolution to occur, the grid needs to generate 3x more power. This is documented in Saul Griffith’s book “Electrify Everything”. This requires 3x the power demand,” Batten tweeted. “More highly flexible consumers of energy who support the renewable buildout and play nice with other consumers = good”

To add to the already difficult situation in which BTC miners fund themselves, the Biden administration is trying to impose a 30% tax on the cost of electricity utilized for mining operations in the United States. In the meantime, the White House is still lobbying to make sure that it gets included in the next federal budget.

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.