Petro considers that cryptocurrencies are more harmful to the environment than the printing of banknotes. The Colombian presidential candidate explained that Bitcoin mining needs to consume two years of energy.
Colombian senator Gustavo Petro recently spoke about cryptocurrencies and their impact on the environment worldwide. The presidential candidate gave his opinion on those assets during an interview on local radio station Blu 4.0.
Concerning proposals on the digital economy in the presidential elections, Petro commented on the cryptocurrency ecosystem. He said that this would not solve anything but is a new form of industrial pressure.
On the radio program, Petro stated that virtual currencies are replacing fiat money, although no forests are at risk due to the printing of banknotes. When comparing them, he highlighted that cryptocurrencies affect the environment in a way fiat money has never done.
Gustavo Petro Is Concerned About the Energy that Bitcoin Mining Consumes
Studies by Lyn Alden and CoinShare Research indicate that Bitcoin mining uses less than 0.1% of global energy, from which 77% is renewable. However, Gustavo Petro believes that this activity makes excessive use of that service, going as far as to consume the world’s energy.
Petro commented that a friend told him that it takes two years of energy to mine one bitcoin in the United States. In addition, he said that this activity is more expensive for a miner than the actual value of the cryptocurrency. Even though he stated that Bitcoin mining companies would not generate a profit, he later mentioned they make money.
Due to the migration of Chinese miners, the United States currently has the highest concentration of Bitcoin mining worldwide. Besides, it is one of the countries with the lowest electricity taxes, which is paramount for that business. In that respect, Texas Senator Ted Cruz recently said that Bitcoin mining avoids the waste of energy resources.
Cruz mentioned that that region has plenty of energy sources that include wind and natural gas. The official pointed out that Bitcoin mining can use the latter during power outages while it supplies energy to the Texas electricity grid.
Texas-based companies Marathon and Riot mined around 340 BTC and 460 BTC in September, respectively. That amount is equivalent to around USD 46 million, according to CoinGecko.
Regarding cryptocurrencies as an opportunity for Colombia, Petro replied that they could work if they find a renewable energy source. In that sense, the senator gave as an example the geothermal power that El Salvador is using.
The presidential candidate had previously proposed taking advantage of the rivers of Colombia to generate clean energy and promote Bitcoin mining. He said that this could prevent the use of their channels for the cocaine market.
The relevance of Bitcoin worldwide is increasingly evident, of which the governments of various countries are aware. Even though some express their concern about the alleged disadvantages of that cryptocurrency, they seek to incorporate it into their economic systems.
By Alexander Salazar
