Recently, lawmakers in the country decided to study Bitcoin mining and see how it could help their energy system.
They passed a law to research Bitcoin mining at the Canton level. In Switzerland, Cantons are like states in the United States.
Why is Switzerland Interested?
What’s all the fuss about Bitcoin mining? Mining is how new Bitcoin is created and how transactions are checked for accuracy. It requires a lot of computers and energy to do this work. Some people worry it uses too much electricity, but Switzerland is flipping the script to explore its benefits.
Switzerland’s lawmakers think Bitcoin mining could be a game-changer for their energy grid. Energy grids help bring electricity to homes, schools, and businesses. Sometimes, they have too much power, and other times, not enough. This is where Bitcoin mining could come in handy.
Lawmakers in Switzerland passed legislation to study Bitcoin mining at the Canton level (similar to state level in the USA).
A testament to working from the bottom up. Proud to endorse this effort in Switzerland. I look forward to continuing to support efforts in Europe. 🇺🇸 🤝🇨🇭 pic.twitter.com/c2lcWu1GPc
— Dennis Porter (@Dennis_Porter_) November 28, 2024
Bitcoin mining can use extra energy that might otherwise go to waste. For example, if a power plant makes more electricity than people need, miners can use that surplus. This helps the grid stay balanced. In turn, when there’s a lot of power demand, miners can pause their work to free up energy for everyone else.
Wasted Energy to the Rescue
Another reason Switzerland is digging deeper into this idea is wasted energy. Think about how water spills over a dam if the reservoir gets too full. That extra water, like unused energy, doesn’t serve much purpose. Bitcoin mining can act like a bucket, catching this overflow and putting it to work.
With a clear verdict of 85 to 46 votes the parliament of @kanton_bern demands a report on the potential of #Bitcoin mining to stabilize our #energygrid and the use of otherwise wasted #energy.
The proposal was co-sponsored by @simonryser (Green Liberal Party), @KorabRashiti1… pic.twitter.com/WnTNzNdPi4— Samuel Kullmann (@samuelkullmann) November 28, 2024
By studying how this works at the Canton level, Switzerland can test the waters before rolling it out nationwide. Each Canton can try different methods and see what works best.
The Bigger Picture
Switzerland isn’t the only country interested in this. Other places, like Texas in the United States, are also exploring how Bitcoin mining can help balance energy grids. By diving into this research, Switzerland is hoping to learn how technology can make life better for its people.
Disclaimer
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