The Bitcoin Mining Council made its official debut on Thursday as debate over the environmental impact of the digital asset intensifies.
The Bitcoin Mining Council describes itself as a “voluntary and open forum of Bitcoin miners committed to the network and its fundamentals.” Its mandate is to promote transparency, endorse best practices and promote Bitcoin education according to the official website.
MicroStrategy CEO Michael Saylor is one of the founding members who posted a call to arms on his Twitter feed on June 10.
The Bitcoin Mining Council is a voluntary and open forum of Bitcoin miners committed to the network and its fundamentals. We promote transparency, share best practices and raise awareness of the benefits of #Bitcoin and Bitcoin mining. Join us. https://t.co/vGPGD3TA5p
– Michael Saylor (@michael_saylor) June 10, 2021
The organization consists of a group of energy-conscious North American Bitcoin mining companies. It was first suggested by Elon Musk in a Tweeter at the end of May, but he has since clarified that he will have no role on the Council. The site does everything possible to emphasize this point:
Elon Musk has no role at BMC. The scope of his involvement was to join an educational call with a group of North American companies to discuss Bitcoin mining.
In addition to MicroStrategy, founding members include investment management firm Galaxy Digital, blockchain mining company Argo, blockchain technology company Hive, and mining company Bitcoin Riot. The founding members will cover all running costs and invited all Bitcoin miners around the world to join. He said any minor joining should:
“Believe that transparency regarding the use of energy for mining is important and agree to voluntarily share their energy mix and hashrate size for research and education purposes. “
The BMC will hold quarterly meetings to analyze mining trends, partner with industry researchers, collect data for educational purposes, and foster the growth of the BTC mining industry in North America.
The group has confirmed that it is completely independent from the Bitcoin network itself and has no intention of disrupting its decentralization.
“We are not seeking to change the decentralized nature of Bitcoin or its fundamentals, but rather we are working to raise awareness about Bitcoin and Bitcoin mining.”
He added that the Council considers Bitcoin’s power consumption to be a feature, not a bug, providing exceptional network security. The energy use of global mining operations has recently been in the spotlight following Elon Musk’s comments regarding its environmental impact.
The Cambridge Bitcoin Electricity Consumption Index (CBECI) estimates that Bitcoin’s annual electricity consumption is currently between that of the Netherlands and that of the United Arab Emirates.
As a result of recent state crackdowns, China’s hashrate dominance is waning while that of the United States is increasing, as mining operations can tap into cheap renewables in states like Texas.
More and more companies are moving to the United States, attracted by this abundance of renewable energy. The latest collaboration between mining software company Luxor and institutional bitcoin technology and financial services company NYDIG aims to foster growth in this growing industry.
However, one of the biggest winners for geographical reasons is neighboring Kazakhstan.