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WEF mining promo video causes controversy in the crypto market

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TL;DR

  • World Economic Forum (WEF) indirectly acknowledges the power of crypto mining without mentioning Bitcoin
  • The video features Chase Lochmiller, the CEO of Crusoe Energy 
  • Crypto community members react to WEF’s double standard on Bitcoin mining

According to recent market developments, the World Economic Forum (WEF) highlighted the facilities and technology utilized by a crypto mining company, implying that its operations were the “biggest winner” for the environment. However, it is important to note that WEF has diverted from acknowledging BTC mining. 

Recent reports indicate that WEF has indirectly become an advocate for 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.

WEF recognized BTC mining’s economic and environmental benefits

In a recent video, the WEF discussed how crypto miners such as Crusoe Energy could assist oil and gas companies in mitigating environmental waste and emissions.

Chase Lochmiller, the chief executive officer of Crusoe Energy, explains in the video how the company uses excess natural gas from energy operations to fuel data centers and crypto mining operations. Crusoe employs Digital Flare Mitigation to eliminate natural gas flaring from oil fields and landfills.

By doing that, not only do we create a massive emission reduction from this previously wasted source of energy, but we can also product ultra-low-cost computing infrastructure by harnessing this otherwise stranded form of energy.

Chase Lochmiller

In the video, Chase Lochmiller explains that the company constructs 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” by employing stranded energy sources that would otherwise go unused.

The April 20 WEF video promoted efforts to reduce flaring, the waste of large quantities of gas resulting from crude production or decomposition. The video displays prominent images of what appear to be cryptocurrency processing facilities. However, the video never explicitly addresses what is happening.

image 537
Source: WEF – video screenshot

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 output by over 10 megawatts (MW) and added approximately 4,000 application-specific integrated circuit (ASIC) crypto-mining devices.

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.

image 536
Source: WEF – screenshot

Crusoe will establish an office in Muscat, the capital of Oman, and install its equipment for capturing gas waste at well sites to be used as computing power for cryptocurrency mining.

The crypto community reacts to the WEF mining stand

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, remarked that the World Economic Forum recognizes the environmental advantages of Bitcoin mining.

Notably, the WEF has previously voiced concerns about the environmental impact of Bitcoin’s current consensus mechanism and advocated for proof-of-stake to be incorporated into its 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 utilized 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 eco-friendly practices. Meanwhile, Kristine Cranley, director of the Texas Blockchain Council, pointed out in a tweet on April 23 that the video did not mention “the b word” once: Bitcoin.

https://twitter.com/KristineCranley/status/1650120742745387009

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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