Riot Platforms Fights Back Against NYT’s Negative Bitcoin Mining Claims

Key Points:

• Riot’s Bitcoin mining operations don’t produce greenhouse gases and use energy like other data centers.
• According to some estimates, about half of Bitcoin mining relies on renewable energy.
• Ethereum no longer relies on competitive energy use to confirm transactions.

The New York Times published an article Riot titled “The Real-World Cost of the Digital Race for Bitcoin,” which described the activities of 34 U.S. Bitcoin mining firms.

Riot was named the largest of those operations, and the article alleged that Riot used 450 MW of power, 96% of which came from fossil fuels, and said that the firm produced 1.9 million tons of CO2 emissions per year. Riot responded by stating that it uses power from the Texas electrical grid, which relies on 24% wind, 10% nuclear, and 4% solar energy. Riot also said that it operates in rural regions where wind and solar are “abundant and otherwise wasted” during off-peak times, and takes advantage of that available energy.

Furthermore, Riot asserted that its Bitcoin mining operations “do not generate any greenhouse gas emissions” and instead use energy just like other data centers. In addition, Riot disputed claims that Bitcoin mining can affect the overall energy market and its prices. The company argued that electricity prices are increasing for reasons that are not related to Bitcoin mining, such as monetary policy, the Russia-Ukraine conflict, and restrictive energy policies, a term often applied to the Biden administration.

Riot went on to contest claims about the amount of savings that Riot has obtained by participating in energy-saving programs, assertions that those programs harm energy availability and prices, and claims about the infrequency of those programs.

Moreover, the article discussed the broader mining industry and included criticism of the crypto-mining industry more generally. Riot suggested that the New York Times article contained a “false and distorted view” of its own company and the crypto-mining industry more generally. The company suggested that the New York Times ignored data provided by Riot and instead chose to make politically motivated claims. It warned that selectively granting electrical access to parties based on their activities is a “dangerous path.”

Various other crypto community members have also criticized the article by The New York Times. The claims made by the New York Times are part of long-standing criticisms about Bitcoin and its energy use. Around 2017, data emerged suggesting that Bitcoin mining uses as much energy as certain countries. Though Bitcoin still uses a large amount of energy, according to some estimates, about half of all Bitcoin mining relies on renewable energy.

Criticism around energy use was extended to NFTs when those assets became popular in 2021. However, Ethereum, which serves as the basis for most NFTs, has discontinued crypto mining. It no longer relies on competitive energy use to confirm transactions.

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