WEF mining promo video causes controversy in crypto market – Cryptopolitan
According to the latest market developments, the World Economic Forum (WEF) highlighted the facilities and technology used by a crypto mining company, suggesting that its operations were the “biggest winner” for the environment. However, it is important to note that the WEF has de-recognized BTC mining.
Recent reports indicate that the WEF has indirectly become an advocate of Bitcoin mining, recognizing its economic and environmental benefits. After criticizing cryptocurrencies for their high energy consumption for years, the WEF has begun to support certain aspects of the crypto market and mining.
The WEF recognized BTC mining’s economic and environmental benefits
In a recent video, the WEF discussed how crypto miners like Crusoe Energy can help oil and gas companies reduce environmental waste and emissions.
Chase Lochmiller, CEO of Crusoe Energy, explains in the video how the company uses excess natural gas from energy operations to fuel data centers and crypto mining. Crusoe uses Digital Flare Mitigation to eliminate flaring of natural gas from oil fields and landfills.
By doing so, we not only create a massive emissions reduction from this previously wasted energy source, but we can also produce ultra-low-cost computing infrastructure by harnessing this otherwise stranded form of energy.
Chase Lochmiller
In the video, Chase Lochmiller explains that the company builds and operates “modular data centers” that are co-located with waste energy sources to use waste methane streams to generate electricity. It was noted that this allows for the production of “ultra-low-cost computing infrastructure” using stranded energy sources that would otherwise go unused.
The April 20 WEF video promoted efforts to reduce flaring, the waste of large amounts of gas resulting from crude oil production or degradation. The video prominently shows images of what appears to be cryptocurrency processing facilities. But the video never explicitly addresses what is happening.
In October 2022, Crusoe expanded its Bitcoin mining assets by acquiring the operating assets of portable BTC mining operator Great American Mining (GAM). The acquisition increased Crusoe’s mining capacity by over 10 megawatts (MW) and added approximately 4,000 application specific integrated circuits (ASIC) crypto mining units.
Crusoe Energy partnered with the Government of Oman in June 2022. Oman exports 21% of its gas production and aims to eliminate all gas emissions by 2030.
Crusoe will establish an office in Muscat, the capital of Oman, and install the waste gas capture equipment at well sites to be used as computing power for cryptocurrency mining.
The crypto community reacts to the WEF mining standoff
While the crypto community appreciates the World Economic Forum’s perspective on the economic and environmental benefits of Bitcoin mining, the video refers to cryptocurrency miners as data centers. Michael Saylor, Executive Chairman of MicroStrategy, noted that the World Economic Forum recognizes the environmental benefits of Bitcoin mining.
In particular, the WEF has previously expressed concern about the environmental impact of Bitcoin’s current consensus mechanism and advocated for proof-of-stake to be incorporated into the code. Some users have suggested that the WEF’s failure to mention cryptocurrency mining explicitly in the video is due to their previous stance on the issue.
Despite the absence of a direct reference to cryptocurrency mining in the WEF video, Crusoe Energy Systems’ mining strategy is an excellent illustration of how technology can be used to reduce waste and promote sustainable practices. Their innovative use of waste energy sources to fuel their mining facilities is not only good for the environment.
Moreover, it also serves as a reminder that the crypto industry can play a significant role in promoting environmentally friendly practices. Meanwhile, Kristine Cranley, director of the Texas Blockchain Council, pointed out in an April 23 tweet that the video didn’t mention the “b-word” once: Bitcoin.
