First meeting of the Bitcoin Mining Council, what happened?

Charlie Taylor

The Bitcoin community still doubts whether that closed meeting between the two billionaires and “the leading Bitcoin miners in North America” was positive or nefarious. of Bitcoin. The others sniff out centralization, distrust closed-door meetings, and reject it outright. However, what do we really know about the meeting? Not a lot. So, let's explore the case further. It all started with these double tweets:

On the 24th, Elon Musk revealed that he had participated in a meeting with North American miners and said that they had committed to publish data on the use of renewable energy for the activity and to ask miners around the world to do the same. Michael Saylor then said that he was responsible for arranging the meeting and that the miners agreed "to form the Bitcoin Mining Council".Pizza Day FoxbitAt Cointimes, we first discussed how this could bring Tesla back to accepting bitcoin and the impact it would have on the price. But there is an even more important issue.

Closed meetings and centralization

The meeting was between Saylor from MicroStrategy, Musk from Tesla and executives from leading North American bitcoin miners, including Argo Blockchain, Blockcap, Core Scientific, Galaxy Digital and HIVE Blockch. “The newly formed Council of Bitcoin Miners is the logical next step to promote a sectoral shift towards renewable energy, ”said Peter Wall, chief executive of Argo Blockchain, in a written statement to Forbes. While some bitcoiners considered this necessary to combat the environmental FUD revived by Tesla's recent statement , others focused on the words “Council”, “principal” and “leader”. Are the rich and famous once again trying to take control of Bitcoin or is this a genuine movement that aims only to regain control of the narrative? Realizing a possible public relations disaster, members of the Bitcoin Mining Council and Michael Saylor felt the need to explain yourself. Both Amanda Fabiano of Galaxy Digital and Peter Wall of Argo turned to Twitter to defend their position: that the main objective of the board is “energy transparency.” “Bitcoin's energy consumption is transparent, making it an easy target for criticism , but what critics cannot see are the energy sources used. Bitcoin is more carbon free than most industries, but we need better data, ”said Amanda in a series of tweets. “Bitcoin's fungibility is important. Bitcoin decentralization is important. No one is discussing this," he emphasized at another time. "Very well, Amanda. It's about promoting energy transparency and improving sustainable mining practices. Nothing more. ”Replied Peter Wall. In her line, Amanda Fabiano justified the existence of the Council by saying“ we need to be transparent and we must encourage others to be transparent too ”, but commented that“ perhaps the word 'Council' was too strong A few minutes later, MicroStrategy CEO Michael Saylor shared the above tweets saying that the Council met "to talk about the energy challenges we face, both real and imaginary …"

But what do we know about the meeting?

The “First Move” program with Julia Chatterley, broadcast on CNN, interviewed the CEO of Marathon Digital Holdings. Fred Thiel was on the call with Musk and Saylor and said his goal was: “To help Elon really understand how energy is used by the bitcoin mining industry and the bitcoin mining industry's commitment to using carbon neutral energy. “And then, of course, he also raised the issue of 'transparency': “One of the reasons for forming this group is to be transparent about energy use, to educate the market about how bitcoin mining is really an energy consumer. of last resort, how we use a lot of energy that would otherwise be wasted. Bitcoin miners do not consume large amounts of energy harmful to the environment. Many are carbon neutral. As we move towards carbon neutrality, we will be a facilitator for the industry that provides renewable energy to experiment with new technologies. ”He makes some positive points here. Like a cleaning monster, Bitcoin tends to go where there is wasted energy to be consumed. Furthermore, it is the perfect incentive for renewable energy companies to innovate and create new clean sources. They will not risk experimentation if there is no market for energy. Bitcoin is that market.

The Bitcoin community against the Marathon

Marathon Digital Holdings is one of the companies with which the Bitcoin community has problems. In the most discussed commentary on the Reddit thread about this whole story, r / Bitcoin moderator Fiach Dubh accused Marathon of having: “The brilliant idea of ​​including only“ OFAC approved ”transactions within the Bitcoin blocks they extract. Great, you are allowed to do that! Even if it means you lose mining revenue by doing this, and even if it means you still include transactions that violate OFAC regulations in your blocks. ”The Bitcoin community fears censorship for those who don't play by Council standards and it sniffs the centralization and consolidation of mining. Marathon, for example, has already revealed that it is willing to censor transactions.

What did Michael Saylor say about the Bitcoin Mining Council?

CoinDesk recently had Michael Saylor as a speaker at the Consensus 2022 conference. There, Saylor expressed that he wanted to help find a way for Bitcoin to share its “complicated but incredible” story. About the Council, he said:The group is more interested in “managing concerns, especially from uninformed parties” about the energy use of bitcoin, said the CEO. these narratives and defining these models and defining these metrics, ”he said. “In the absence of any good information or response from us, they will define these models.” And that's all we know so far about the Bitcoin Miners Council.

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