Authorities in Thailand have ended an illegal scheme that was costing the country substantial electricity resources.
What's happening?
As explained by Energy News in November, nine covert bitcoin mining farms have been forced to cease operations after police discovered that they caused losses of over 10 million baht (approximately €281,345/$296,477) for local electricity providers. Each site had equipment designed for cryptocurrency mining, including high-performance computing machines.
As part of this "organized illegal network," as described by Energy News, investigations determined that farm operators managed to bypass costs and obtain the electricity needed for these illegal activities without payment by tampering with electricity meters. The investigations began after a local resident reported surveillance cameras around an unoccupied house.
Two 30-year-olds were arrested and face charges of electricity theft and illegal operation of mining equipment.
Bitcoin mining is legal under Thai law, but like most countries, it is heavily regulated by fiscal and technical policies. The two individuals face potential legal consequences, which include hefty fines and possible imprisonment.
Why is this important?
Crypto mining is an energy-intensive process where codes are generated using large computer banks to validate and approve transactions on the blockchain, resulting in newly created cryptocurrency. The practice has become popular in multiple countries, and Energy News explained how Thailand became a hub for crypto mining farms.
"Thailand, where electricity costs are relatively low, has become a favored destination for cryptocurrency miners," Energy News stated. "However, this activity, legal under certain conditions, increasingly attracts clandestine networks seeking to evade taxes and regulations."
Whether done legally or illegally, the environmental impact of cryptocurrency mining cannot be understated. A study by the United Nations found that the bitcoin cryptocurrency alone used a whopping 173.42 terawatt-hours of electricity during a single mining period. That amount of electricity is similar to what's used to power small countries.
Some analysts have also pointed out that professional bitcoin mining operations have increasingly shifted to buying or funding the development of renewable energy farms to power their operations, which they say could help to spur the world's shift to clean energy if those farms produce more power than the mining requires.
In the meantime, while estimates vary, bitcoin usage undeniably still draws millions of tons of net carbon dioxide equivalent pollution each year.
What's being done about this?
The arrests of the two suspects believed to be responsible for the nine illegal cryptocurrency mining farms in Thailand should serve as a warning to follow the strict regulations and policies that are in place to reduce the potentially harmful risks.
Some countries, such as Russia, have taken steps to reduce energy consumption by banning crypto mining in key areas.
Another positive development is Ethereum, another major cryptocurrency, shifting from the typical "proof of work" mining process to "proof of stake" and reducing its energy consumption by 99.95%, making it one of the most eco-friendly blockchains and showcasing a path toward greener digital currencies.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
