Switzerland has officially passed a bill to consider Bitcoin mining, signaling growing acceptance among traditional financial institutions and financial institutions. government all over the world.
This initiative is reported This statement by Satoshi Action Fund CEO Dennis Porter reflects a broader trend, accelerated by recent political changes, including the election of Donald Trump, that sees BIT as a viable financial asset. There is a renewed interest in coins.
Bitcoin mining potential amid legislative push
The law requires the Council of State to prepare a comprehensive report analyzing the potential benefits and challenges associated with Bitcoin mining in the canton of Bern.
According to the court documentThis report identifies regions where untapped energy can be harnessed for mining operations, assesses how this energy can be effectively harnessed by working with local Bitcoin mining companies, and explores how Bitcoin mining can be leveraged locally. The purpose is to evaluate whether it can contribute to stabilizing the power grid.
The initiative comes from the bipartisan Bitcoin Parliamentary Group, which seeks to position Bern as an “advanced hub” for what lawmakers call the digitalization of finance.
The Swiss parliament also claims that regions around the world with surplus electricity are beginning to realize its economic potential. BTC mining. These businesses are considered flexible consumers of surplus electricity, especially when energy production exceeds local demand.
In Switzerland, lawmakers argue that BTC miners can offer a solution to areas with negative electricity prices, providing an economic incentive to use wasted energy.
The potential for Bitcoin mining to stabilize power grids is highlighted by examples such as in Texas, where miners have successfully partnered with power grid operators to stabilize power grids. energy resilience. However, the State Council expressed concern about the impact of increased Bitcoin mining activity in the canton of Bern.
Warning against state intervention
The council claims that there are currently no statistics on electricity consumption for Bitcoin mining in Switzerland, but it is recognized that much of this activity is carried out abroad using cloud technology.
A report from the Foundation for Technology Assessment (TA Swiss) highlights that demand for data centers, driven by trends such as big data and the Internet of Things, far outstrips societal influences. Masu. cryptocurrency mining Regarding overall power consumption.
The council warned that the expansion of Bitcoin mining could lead to fluctuations in energy prices and “jeopardize” the electrification of other sectors such as transport and heating.
There are concerns that Bitcoin mining could intensify competition for limited energy resources as electricity demand increases due to digitalization and electrification.
Officials also stress that the market should decide energy supply and suggests that the potential benefits from mining should emerge organically, rather than through state intervention.
At the time of writing, the largest cryptocurrency is once again nearing the $100,000 milestone, currently trading at $96,760, up 10% over the past 14 days.
Featured image from DALL-E, chart from TradingView.com
