The official defends Bitcoin as an alternative to fiat money as a store of value and as an investment mechanism. Many believe that Bitcoin mining contributes to harming the environment due to carbon dioxide (CO2) emissions.
Bitcoin (BTC) mining has been expanding in some regions of the United States at a large scale. Republican Senator Cynthia Lummis recently invited those who work in this sector to settle in her state, Wyoming.
Lummis defends using Bitcoin as an alternative to fiat money as a store of value and as an investment mechanism. The official believes that the pioneering cryptocurrency should be part of citizens’ investment portfolios and retirement funds.
The senator told CNBC that many people misjudge cryptocurrency mining, arguing that it mainly uses unclean energy sources. The legislator explained that many things show a different reality since this activity uses various renewable energy sources. After those statements, Lummis confirmed her position on her Twitter account and welcomed the miners to Wyoming.
In her message, the official highlighted that those in the Bitcoin mining space could operate in Wyoming. The lawyer recalled that mining used increasingly less fossil fuel energy and that innovation continues to develop in this activity.
Regarding the US dollar, Lummis said that it would maintain its status as a world reserve currency. However, she criticized the government for the excessive printing of dollars, as this could be weakening the value of the US fiat currency. She showed her concern about people having all their retirement money in US dollars.
Bitcoin Mining Can Also Use Renewable Energy Sources
Many have recently questioned Bitcoin mining for allegedly using non-renewable energy sources. Although the claim is not new, it drew attention after Tesla’s CEO Elon Musk said it harmed the environment.
Researchers from the University of Cambridge found that 76% of the energy that Bitcoin mining uses comes from renewable sources. Although miners mainly use hydroelectric power, they also use wind, solar, and geothermal energy sources. In other words, they use increasingly less oil-derived energy, thus helping to reduce carbon dioxide (CO2) emissions.
It is important to remember that Wyoming is one of the provinces that most supports the pioneering cryptocurrency. In 2019, they legalized the use of Bitcoin and other cryptocurrencies as a means of payment. The law of the state crypto assets as property whose operation is like that of fiat money.
Some US government officials such as Cynthia Lummis support the mining of Bitcoin and its adoption as a means of payment. However, others oppose it and recommend strict measures in countries that adopt it as legal tender. The Undersecretary of Public Affairs, Victoria Nuland, recently told Salvadoran President Nayib Bukele to regulate it when he fully implements the Bitcoin Law.
She stressed that the use of cryptocurrency had to be transparent and accountable to ensure protection against malicious actors. Nuland said that the US government had Bitcoin in its sights after the cyberattack against Colonial Pipeline. That is a sign that she believes that Bitcoin only serves to promote illicit activities.
By Alexander Salazar
