Crypto mining has become a burning topic due to its high impact on climate change and the environment. Right now, the European regulators are considering the impact that proof-of-work mining has on climate change.
EU Wants to Have a Discussion About More Efficient Mining Technology
The vice-chair of the European Securities and Markets Authority, Erik Thedeen, has raised concerns about renewable energy for Bitcoin mining.
Thedeen stated for Financial Times that Bitcoin mining has become a national issue and warned that crypto mining could pose a significant threat to climate change goals.
He stated that there needs to be a discussion about shifting the industry to more efficient technology. Thedeen also called the European regulators to pay attention to proof-of-work mining technology and consider proof-of-stake as a better, energy-efficient alternative.
On the other hand, Melanion Capital, a Paris-based investment firm, stated that the growing bans on PoW mining are entirely misinformed.
According to the company, the decentralized nature of Bitcoin and similar digital assets, unfortunately, doesn’t have enough experts or groups to defend its interests. Thus, the regulators should not take advantage and define something like Bitcoin PoW mining as an illegal activity just because there’s no one to defend it.
The most significant factor that affected the shift in PoW to PoS in 2021 was the Chinese crypto ban. It pushed many miners towards using renewable energy sources. Additionally, Elon Musk claimed that Tesla would get back on accepting BTC payments should the network use 50% of renewable energy sources.