Ciudadanos wants to turn Spain into a world power of production – mining – of cryptocurrencies. To understand this story well, it is necessary to first understand the context. Because the value of Bitcoin has fallen by around 10% in just 100 hours. And the cause is in Kazakhstan. The riots in this country from the orbit of Russia have paralyzed bitcoin mining and the global market for cryptocurrencies has suffered an earthquake.
And that is what the party led by Inés Arrimadas wants to take advantage of. This is how you can read it in your written question sent to the Government: “Does the Government plan to take any measures to attract to Spain investments and activities in crypto-asset mining that could flee from Kazakhstan due to the instability currently being experienced in the country?”. Does this make any sense? Can Spain become a global Bitcoin mining powerhouse?
Journalist Paco Rubio responds to this question, who has started his speech in laSexta Clave pointing out that those who know about cryptocurrencies say that an idea is quite far from reality. It is very, very difficult. The planets would almost have to align. Before going into the details, Rubio has explained what it means to ‘mine Bitcoins’. Bitcoin is a cryptocurrency, a virtual currency. The process to generate this coin is quite complex, but in short: you have to solve a series of complicated mathematical problems.
To do this, it needs a lot of energy, since bitcoin is ‘mined’ in facilities called cryptocurrency mining farms. There are thousands of servers that are constantly working to solve these mathematical problems. And for them to work non-stop, a powerful cooling system is required and therefore enormous energy consumption. Y in Spain energy is not exactly cheap at the moment.
70% of the costs of mining a Bitcoin are those that are spent on electricity. And what has happened this year in our country with the electricity rate is already known. For example, this month of December we had an average cost per kilowatt hour of almost 240 euros. How much would it then cost to generate a Bitcoin in our country unlike others? To get an idea of how profitable it is to mine Bitcoin in Spain, laSexta Clave publishes the map that you can see below where you can see what it costs to mine a Bitcoin in each country on the planet.
Spain is in red, which means that we are among the most expensive countries and, therefore, least profitable and least attractive in the world to mine cryptocurrencies: It costs more than $ 30,000. Also, the ecological footprint of ‘manufacturing’ bitcoin is so brutal that the European Commission is considering banning mining in the European Union. At the moment, in Spain it is allowed. In China they have banned it, albeit for political reasons. In the European Union, for its part, the idea of banning it is also gaining strength due to the great environmental impact caused by the mining of Bitcoin.
We wish to give thanks to the writer of this write-up for this outstanding material
Ciudadanos wants to turn Spain into a world power of bitcoin: why it is not a good idea