Rising Bitcoin BTC Mining A National Strategy Prioritizing Environmental Concerns First

Coin World Report:
Whether it is in China or globally, the core issue for accepting or even promoting Bitcoin (BTC) mining is “how to solve environmental and energy problems.”
By: Liu Honglin, Iris
“I will ensure that the United States becomes the capital of global cryptocurrency and the superpower of Bitcoin. If cryptocurrency defines the future, I want it to be mined and minted in the United States, not elsewhere. If Bitcoin is going ‘TO THE MOON’ as we say, I want the United States to lead this trend.”
– Donald Trump
Since Trump made this statement, Bitcoin mining and the value of Bitcoin have become the focus of the market. According to an investor report released by Morgan Stanley analysts on October 16, the 14 listed Bitcoin miners in the United States currently control 28.9% of the global hashrate, and their market dominance is still growing. Meanwhile, as the US presidential election entered the countdown in October, whether Trump can win directly affects the Bitcoin (BTC) market. Reports suggest that if Trump wins, the price of Bitcoin may skyrocket.


*Image source: Voting status of US states on October 23
In addition to the US election, the latest positive news about Bitcoin mining worldwide is the implementation of the Bitcoin mining bill in Russia, which is expected to enhance Russia’s position in Bitcoin hashrate. Previously, Man Kun Law Firm also published several articles, such as “Web3 Lawyer: How to Interpret the US Purchase of 1 Million Bitcoins as National Reserves?” “Bitcoin Welcomes ‘Made in America,’ Cryptocurrency Mining Becomes a New Focus of Great Power Competition” “Web3 Lawyer: Russia Passes Cryptocurrency Mining Bill, Is BTC Mining Officially Legal?” analyzing the important status of Bitcoin reserves and mining industry.
However, whether in China or globally, the core issue for accepting or even promoting Bitcoin (BTC) mining is “how to solve environmental and energy problems.”
The Seven Sins of Bitcoin Mining: Environmental Unfriendliness
Restrictions on Bitcoin mining can be said to be a major trend globally in recent years, with China’s regulatory policies being the most typical.
1. China
China was once the absolute center of global Bitcoin mining, with nearly 75% of the global hashrate. However, the “Notice on Rectifying the ‘Mining’ Activities of Virtual Currencies” issued by the National Development and Reform Commission and other departments in 2021 pointed out that Bitcoin mining leads to energy waste, especially in energy-consuming provinces such as Inner Mongolia and Sichuan. Its high energy consumption contradicts China’s carbon neutrality goals, so Bitcoin mining became the first target to be cracked down on. Against this backdrop, a large number of domestic miners have shifted their operations overseas. However, according to a report from well-known Web3 media Bitcoin Magazine titled “China Never Banned Bitcoin Mining,” China’s Bitcoin mining has been “cleared” only once in 2021, and it quickly recovered. Currently, China’s mainland has the second-largest hashrate in the world, second only to the United States.
2. Kazakhstan
After the ban was implemented in China, a large number of miners migrated to Kazakhstan, where energy is relatively abundant and electricity prices are low. The rapid growth of mining activities has put severe pressure on its power grid and even caused nationwide power shortages. In order to control energy consumption, the Kazakhstani government began to restrict the power quotas of Bitcoin mining companies in 2022 and increased efforts to crack down on illegal mining farms. The country also introduced an electricity surcharge for cryptocurrency mining to reduce the impact on the power grid.
3. Iran
Iran is another important Bitcoin mining country, and its low-cost electricity has attracted a large number of mining companies. However, Bitcoin mining is also considered one of the reasons for the country’s power shortage. In order to cope with the peak electricity demand in the summer, the Iranian government implemented a temporary ban on Bitcoin mining during the electricity shortage period in the summer of 2021. By 2022, the Iranian government suspended mining activities again, attempting to reduce grid pressure during peak electricity demand and cracking down on illegal mining farms.
4. Some states in the United States
Although the overall attitude of the United States towards Bitcoin mining is relatively lenient and even welcoming, it is still decentralized. Some states have adopted stricter regulatory measures out of environmental and electricity resource allocation considerations. For example, New York State passed a law in 2022 temporarily banning Bitcoin mining facilities that use fossil fuel energy in the state.
5. Other law enforcement actions
In recent years, some countries and regions have taken more severe law enforcement actions. For example, on August 21, 2024, Malaysian authorities destroyed over 900 Bitcoin mining machines in an operation to combat electricity theft. On May 27, Venezuelan authorities confiscated over 6,000 Bitcoin mining machines and sealed a total of 17,000 machines, with plans to cut off all Bitcoin mining farms. On May 26, Paraguayan authorities seized nearly 400 Bitcoin mining machines in the city of Sapucai. On December 29, 2023, Indonesian regulatory authorities raided ten suspected electricity theft mining sites, confiscating 1,314 Bitcoin mining machines and detaining 26 people.
It can be seen that law enforcement related to Bitcoin mining is usually linked to electricity pressure, electricity theft, and energy consumption. Therefore, to change the attitude of governments towards Bitcoin mining globally, it is necessary to start from energy and environmental protection. In fact, some countries have already begun to alleviate the environmental burden of mining through environmentally friendly solutions and use this trend to promote economic growth, such as the United States and Russia.
US and Russia Support Bitcoin Mining: Clean Energy
Why can the United States and Russia consider Bitcoin mining as a national strategy, and how do they solve the energy and environmental problems?
1. United States
Clean energy and technological innovation are the main means for them to solve the energy and environmental problems of Bitcoin mining.
Currently, some states in the United States have begun to adopt clean energy, such as Texas. The state not only has low electricity prices but also has a large amount of renewable energy, especially wind and solar energy. These clean energy sources can allow miners to operate at relatively low costs and reduce reliance on fossil fuels for Bitcoin mining.
At the same time, many Bitcoin miners and companies in the United States have realized the importance of energy efficiency and have taken some technological innovation measures to improve mining efficiency. For example, using advanced cooling technology to reduce the energy consumption of mining equipment, establishing clean energy facilities near mining farms, and reducing environmental impact through waste heat recovery. Some Bitcoin miners also offset their carbon footprint by purchasing carbon credits, such as investing in other sustainable projects (such as afforestation) to compensate for their impact on the environment.
2. Russia
Abundant clean energy and favorable climate are key factors for Russia to introduce Bitcoin mining on a large scale.
The Siberian region of Russia has abundant hydro resources, providing cheap and clean electricity supply for Bitcoin mining. The sparsely populated area also leads to an energy surplus, so the Russian government encourages miners to utilize these resources to reduce energy waste. At the same time, the cold climate in Siberia helps reduce the cooling costs of Bitcoin mining machines, making the mining process more efficient and environmentally friendly.
In terms of policies, Russia has enacted a Bitcoin mining bill. The bill sets clear and strict regulatory requirements for energy consumption and imposes severe penalties to ensure that legal miners can use clean hydropower resources and avoid negative impacts on the energy needs of local residents. In addition, the government encourages the control of illegal mining farms through legal means and ensures that energy distribution during mining complies with regulations.
3. Other countries
Countries such as Canada and Norway have abundant hydro resources, while Iceland relies almost entirely on geothermal and hydroelectric power. El Salvador is actively promoting the use of volcanic geothermal resources. These countries are using clean energy to reduce the environmental impact of Bitcoin mining, attract a large number of Bitcoin miners, and increase their economic growth.
The First Step in Global Strategic Layout: Promoting Environmental Protection
In order to further promote the acceptance and development of Bitcoin mining globally, especially in countries and regions with doubts about environmental protection, the first priority of the global strategic layout is to promote environmental protection. This is also a crucial step for the sustainable development of the Bitcoin mining industry. This process requires not only policy support from regulatory agencies but also active cooperation from miners and related companies and practical technological innovations.
Man Kun Law Firm believes that possibilities can be considered from the perspective of government agencies and miners/companies:
Government agencies:
As demonstrated by the actions of the United States and Russia in environmental protection and energy utilization, from the perspective of regulatory agencies, whether it is directly providing clean energy supply to Bitcoin miners, introducing incentive policies, or implementing carbon offset programs similar to carbon offset plans to promote mining companies’ investment in sustainable projects such as afforestation, all these measures can promote Bitcoin miners to adopt clean energy and consider energy conservation and efficiency. In addition, through measures such as tax incentives and subsidies, the government can effectively guide miners to adopt more environmentally friendly technologies and reduce reliance on traditional energy sources.
Miners/companies:
Whether it is to comply with environmental requirements from regulatory agencies or from the perspective of corporate social responsibility (ESG), actively adopting clean energy is a key step in solving environmental problems. At the same time, miners and companies should actively use technological innovations to improve energy efficiency. For example, using advanced cooling technology, establishing clean energy facilities near mining farms, and reducing environmental impact through waste heat recovery. Some miners also choose to purchase carbon credits to offset their carbon footprint, such as investing in other sustainable projects (afforestation, etc.) to compensate for their impact on the environment.
Additionally, government agencies and miners/companies can consider joint construction of clean energy infrastructure, such as establishing wind, solar, or hydroelectric facilities near Bitcoin mining farms, so that energy can be converted and used locally. This not only promotes the application of clean energy but also attracts more miners and mining companies, increasing the global share of the country’s Bitcoin hashrate. With these measures, countries can not only regulate the Bitcoin mining industry but also incorporate it into their long-term energy strategies and carbon neutrality goals.
In conclusion, elevating Bitcoin mining to the level of a national strategy is not only related to environmental protection and energy management but also closely related to technological innovation, economic development, and international competitiveness. Therefore, “promoting the development of the Bitcoin industry” relies not only on slogans or visions but also on pragmatic actions. From clear regulatory policies to practical energy utilization solutions and technological innovations, sustainable development of Bitcoin mining requires comprehensive efforts and execution. Only by coordinating the environment and mining demands can countries truly promote the maturity and stability of the global Bitcoin mining industry.