Expressing the goals of promoting energy usage transparency & accelerating sustainability initiatives worldwide, Michael Saylor, the CEO of Microstrategy, and Elon Musk, the CEO of Tesla, announced the formation of Bitcoin Mining Council (BMC). They have their goals ready to concretize the formation. Even though they have no experience on mining, Saylor and Musk are leading in this. But they both are Bitcoin investors and holders. What are these things that are motivating them to adopt such a decision, either experience as an investor or Tesla’s involvement in Bitcoin? What Saylor said is the group has looped in actual miners who know what they are talking about, including Galaxy Digital, Argo Blockchain.
People having some interest in cryptocurrency have been turned off by environment concerns, but who knows what is inside your mind. But Musk and Saylor’s message is being taken seriously. But you will see a real impact on Bitcoin’s energy consumption if this is more than a message. Now it remains to be seen that how the group pursue its goal as there are a few ways.
Whether the group has made planned the issue seriously is still a question. But message has cut the stain in the mind of longtime Bitcoiners who suffer from a sort of PTSD towards groups of influential people working together on Bitcoin solutions. Things appear that this is not part of Saylor and Musk’s plan. In 2017, the New York Agreement players had tried to bring a change, but they failed to do so. No other tactics will be capable to make as a whole consume less electricity. So the attempt of Saylor and Elon will bring a number of challenges before them.
A truly independent standards body
This is the right approach to improve the sustainability of the system. Dues from member miners would fund the organization and would find supplemental revenue streams. Increased demand for mined coins from those seeking for cleaner coins would benefit certified miners. Bitcoin miners after creating a truly independent regulatory and standards body that reviewed and certified miners’ use of a clean energy. It is expected that this would open a significant new potential pool of bitcoin investors and users too.
A pretty clear market need for cleaner Bitcoin investment can be created when large corporations, investors, and financiers pay their interest in Bitcoin that leaves real reputational pressure from shareholders, the media, and other public watchdogs to be environmentally responsible.
A BMC ought to establish its green certification as a standard for regulated investment funds providing that Saylor and Musk want to have an actual long-term effect. That regulated investment funds will not only offer Bitcoin but also want their investors to feel good about their greenhouse impact. As a result of this investors will pay a premium as clean energy being expensive and also administration costs associated with buying certified green Bitcoin.
Though this approach is free from government intervention and will influence the most public and visible coin onramps, this is an important approach.
In this system, there is no imposing of new rules but influencing bitcoin at the point in its history. This approach creates added value without tweaking anything on the blockchain, and never creates ‘’two bitcoins’’ where the New York Agreement failed.
A lobbying group or PR guesture?
The possibility lies in publishing a transparency report from five or six Bitcoin miners every six months, funding a handful of upbeat ‘research report’ on bitcoin and clean energy and agree to stop doing. It is the least possibility that can happen. The idea that Musk has in his mind needs much more insight about crypto, but he hasn’t that much insights at all. So he probably is walking the wrong way.