In the recent months, we have heard a lot about cryptocurrency mining and the effects it has on the environment. Environmentalists are clearly against it, claiming that it wastes a lot of energy and that it even sometimes consumes more power than certain countries. On the other hand, we also hear a lot from crypto enthusiasts who are for mining and don’t see issues in performing the activity for profit. However, rarely have we heard from the electricity companies themselves.
Enel, one of the largest European electricity provider from Italy has come out against crypto mining, according to Reuters. The company released a statement explaining that it doesn’t want to provide energy for high-consuming activities like mining of digital currencies. The reasoning behind this decision is that the firm wants to move towards a more responsible and environmentally friendly approach, with clean energy and renewable resources. Cryptocurrency mining goes against this, as it consumes a lot of energy and power, in a non-renewable fashion.
The statement read: “Enel has undertaken a clear path toward decarbonization and sustainable development and sees the intensive use of energy dedicated to cryptocurrency mining as an unsustainable practice that does not fit with the business model it is pursuing.”
It will be interesting to see if more electricity providers come out against virtual currency mining in the future. Renewable energy is one of the most talked about subject in politics and economics. Government officials around the world are looking to reduce energy waste and are trying to find ways to move towards greener societies. If mining is deemed irresponsible by energy companies and lawmakers, the current state of the mining business might change. In turn, this could trigger new issues in the crypto space as most coins and tokens are minable. Could we see new, responsible, ways of creating new currencies without mining in the near future?
TLDR: Enel, one of the largest energy providers in Europe has released a statement against cryptocurrency mining stating that they will not sell electricity to individuals with this intent. The company is one of the first ones to do so, but others may follow.