Bitcoin mining has recently come under fire again, this time due to a report from The Economist that has stirred debate about the industry's environmental impact.
The focus of the controversy is the practice of the Electric Reliability Council of Texas (ERCOT), which compensates Bitcoin miners to reduce their operations during periods of high electricity demand. Last August, Riot Platforms reportedly saw a significant increase in revenue simply by halting mining activities during these peak times.
Critics, including journalist Robert Evans, argue that this arrangement essentially allows Bitcoin miners to profit from avoiding energy consumption rather than paying higher rates for their electricity.
Some voices, like Ed Zitron, CEO of EZPR, have called for stricter measures, suggesting that miners should face penalties for high energy use rather than receiving payments for reducing their operations.
Others, such as former Bloomberg columnist Noah Smith, predict a growing backlash against this practice. Technology journalist Kelsey D. Atherton has proposed that instead of compensating miners, the government should take more direct action, like confiscating mining equipment.
The situation has even been described as a form of “extortion,” with accusations that mining companies are effectively manipulating the state’s power grid. Economist Nathan Tankus compared the situation to the notorious Enron scandal, suggesting that the crypto industry has created a modern, legally acceptable version of Enron’s controversial tactics.
After weeks of intense institutional activity that helped push Bitcoin above $100,000, inflows into U.S. spot Bitcoin ETFs took a breather between May 6 and May 12.
Bitcoin’s rapid recovery beyond $104,000 has sparked a wave of optimism in crypto circles, but the bigger question remains: is this just the beginning?
While Bitcoin’s price has recently rebounded, the enthusiasm for spot ETFs appears to be cooling. Weekly inflows into U.S. Bitcoin ETFs have dropped sharply, signaling a pause in aggressive institutional accumulation.
A wave of optimism swept through global markets as the United States and China took decisive steps to de-escalate their long-running trade dispute.