Bitcoin mining exists primarily to build a global digital network to store value without the need for banks or other intermediaries, and for peer-to-peer exchanges. It is also one of the most environmentally friendly industries in the world.
The Cambridge Center for Alternative Finance estimates that global Bitcoin mining uses less than 0.2% of the world’s energy production—roughly comparable to an entire refrigerator in the US and less than data centers and data networks in general.
In other words, it uses very little energy in the grand scheme of things—and nearly 60% of what it uses comes from renewable sources, according to data published by the Chamber of Digital Commerce. Bitcoin mining also helps create a market for intermittent sources such as solar and wind during peak hours.
Furthermore, unlike other data centers, mining facilities can shut down during high-demand events such as extreme weather to provide network stability and prevent the use of fossil fuel-powered peaker plants.
But the current administration, fringe politicians, and environmental groups are singling out Bitcoin mining by trying to limit access to energy and impose or propose taxes so that the industry will have a reason to leave the US entirely. And sure they don’t try to ban everything.
These critics now call the data “marginal emissions”, which only businesses dislike for political reasons, and say they use too much energy. To be clear, Bitcoin mining does not mine anything—it requires a computer, which uses electricity like any other data center.
Saying these policy proposals and their tortured justifications are misguided would be the best reading. The effects would be devastating to the US environment, economy, and national security.
Relative to the leading Bitcoin mining jurisdictions, the US has a very clean energy grid. Texas is a leader in Bitcoin mining and the operating home of Riot Platforms, the largest Bitcoin mine in North America. According to the American Clean Power Association, Texas leads the nation in renewable energy capacity added by 2021 — nearly three times that of second-place California.
Pushing offshore Bitcoin mining, under the guise of environmentalism, only means that the US will take less of the value of Bitcoin, and the rest of the mining will happen to be connected to dirty energy networks in other hostile parts of the world. For example, Russia is known not only for the production of fossil fuels and the use of energy for political brinksmanship, but also among the world leaders for leaking methane into the atmosphere. It is already among the top five Bitcoin mining jurisdictions and is looking for more market share. Weakening the American Bitcoin mining industry would be a huge gift for Russia—and increase global carbon emissions.
That leads to national security issues. As noted in the recent Department of Justice report on cryptocurrencies, America has strong anti-money laundering rules and guarantees that when people move Bitcoin values from the network and out of traditional accounts, they can be traced – malicious actors can be caught, unlike in others. part of the world. Russia, for example, is a world leader in ransomware attacks and cryptocurrency abuse, as well as traditional financial intermediaries. Keeping Bitcoin mining in America means that more value will be captured by highly regulated US companies and law-abiding individuals only interested in optionality when storing and transferring value.
Bitcoin mining has created thousands of jobs. Riot alone employs about 500 people, many of them in Rockdale, Texas, a community that previously suffered from the closure of a large industrial aluminum-smelting plant. Riot is currently helping to support a program with Texas State Technical College to upskill the local workforce with a program in computer repair and programming.
Bitcoin mining is a bourgeoning industry that is good for the environment, economy, and national security. The onslaught of nefarious political forces must be resisted to maintain America’s leadership role in the digital economy.
Jason Les is the CEO of Riot Platforms, Inc., the largest Bitcoin mining company in North America by market cap. Brian Morgenstern is Riot’s head of public policy and served as senior adviser and deputy assistant secretary of the Treasury from 2017 to 2020. Opinions expressed in Fortune.com comment pieces are solely the opinions of the authors and do not necessarily reflect their opinions and beliefs. fortune.