Each story of criminals using cryptocurrencies to facilitate their activities intensifies the efforts of governments and businesses to stop them. The US Congress is now considering legislation to ban companies from paying ransoms to reduce the leverage of cybercriminals in exacting payments. This week, the Chinese Police Arrested 1,100 People for Money Laundering With Cryptocurrencies.
While global crypto mining is currently 75% concentrated in China, this is becoming less tolerable as extreme heat and air conditioning use intensify power shortages and force some factories to shut down GDP-driving production. See Why China is cracking down on Bitcoin mining and what it could mean for other countries. In Iran, blackouts and power shortages prompted the government to ban crypto mining on May 26.
As extreme heat and drought intensify globally, these issues are certain to escalate. At the same time, greenhouse gas emission limits and carbon taxes will drive cities, states, provinces and countries to necessarily clamp down on counterproductive, energy-intensive activites. When there is only so much emissions budget one can spend, food production, shelter, transportation and essential activities have to take precedence over energy for things like crypto mining. Those who want to keep mining will need to find emission-free, renewable power sources or move to places that offer them.
This week, El Salvador’s president instructed the nation’s state-owned geothermal electric company to market facilities for cheap, renewable power to bitcoin miners.
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