Marathon CEO Fred Thiel stated that regulators should encourage bitcoin miners to use renewable energies following the White House report. Thiel pointed out that these findings encourage people look for ways to make proof-of-work more efficient.
Fred Thiel, CEO of Marathon, believes that U.S. regulators need to create incentives for Bitcoin miners to use renewable energy as well as disincentives for those who use fossil fuel-based sources.
Thiel’s remarks were made following a White House report about the environmental consequences of crypto mining. Thiel spoke out about his company’s operations in an interview.
Thiel stated, “Unlike other miners that may be on the grid sucking energy from the grid in competition to consumers, we do this behind the meter.” It’s more symbiotic than parasitic to the grid.
Marathon Mining firm moves operation to more sustainable areas
In January, the company announced that it would move miners from Montana to new areas with “more sustainable” energy sources. One of them is located in West Texas near a wind farm that has a connection to grid power for inactivity.
Thiel stated that the company serves two purposes. Thiel stated that the company serves two functions: first, it is a customer of renewable energy stations and second, it provides grid access to large amounts of power that it can use when necessary.
Thiel believed this idea would be embraced by the bitcoin mining sector. Thiel also stated that excess gas should not be flared if it isn’t necessary.
“If you offer an incentive to miners to colocate behind the mediator in renewable energy plants, miners will move there.”
According to the White House, miners who are located in areas with high amounts of renewable energy such as West Texas can “provide additional revenue to renewables developers” and encourage the construction of more renewable energy capacity. However, they can also “reduce financial incentives to build transmission from these renewables to existing customers.”
Energy grids struggle with capacity
Thiel responded that the transmission grid will not build more connection capacity unless it has more generation capacity.
He said, “It’s an egg-and-chicken thing.” “Generation capacity cannot be increased unless there is an economic incentive for the generators to build more capacity.”
Thiel claimed that the White House’s findings encourage people to seek out ways to make work more efficient and less harmful to the environment.
“Regulators are, I believe, educating themselves.” He also stated that they are learning about Bitcoin mining. Slowly, we are beginning to understand what proof of works is and why it is better than proof of stake. It takes time.
The Foundry director of public policy Kyle Schneps reacted to the White House report by saying that it was “clearly a case of scapegoating an emerging industry for the purposes of political posturing.”
Schneps stated that it was important to ask why the cryptocurrency industry is held to a higher standard than other major businesses.
Rachel Silverstein is CleanSpark’s general counsel, and also senior vice president of compliance. She said that the company would be open to working with the White House to set “fair standards” in the mining industry.
Silverstein stated that proof-of work mining was the best way to keep Bitcoin open, transparent, and accessible.