Crypto mining consumes green energy and calls for a moratorium. In the opinion of a senior regional regulator, the European Union must restrict. A form of cryptocurrency mining that relies heavily on renewable energy and. As a result, poses a threat to the achievement of climate-change objectives. As soon as feasible.
According to Erik Thedéen, vice-chair of the European Securities and Markets Authority. In an interview with the Financial Times. The practice of submitting “proof of work” should be forbidden.
Mining, one of the most widely used methods of verifying cryptocurrency transactions. Has been criticized for consuming excessive amounts of energy. Due to the fact that it employs a competitive method of verifying transactions. In which a large number of miners compete against one another. To solve cryptographic puzzles, to confirm transactions. The alternate, newer “proof of stake” technique makes use of fewer miners. Who are selected at random, as opposed to the older “proof of work” technique.
Thedéen also observed that in his home country of Sweden. Where regulators have determined that a rising amount of bitcoin mining is carried out. Using renewable energy, “proof of stake has a significantly lower energy footprint. Than other mining methods.” “We need to have a conversation about transferring. The sector to a more efficient technology,” he believes.
For a multitude of reasons ranging from money laundering to environmental and energy concerns. The Chinese government banned cryptocurrency activity. Including cryptocurrency mining, in 2017. According to Swedish authorities, “energy-intensive mining of crypto assets”. Should be stopped immediately because it is jeopardizing the country’s ability. To satisfy the Paris Agreement’s climate-change goals and objectives.
Due to the large amount of renewable energy that has committed to bitcoin mining. Thedéen believes that the cryptocurrency has now emerged. As a national issue in Sweden.
The European Parliament has proposed a company requirement as Crypto Mining Consumes Green Energy
A mandate for enterprises to reveal their crypto-related energy use. Has proposed by the European Parliament. And the Crypto Climate Accord is an attempt. By the private sector to address the issue.
MarketWatch received an email from Jad Comair, the founder and CEO of Melanion Capital. In which the latter expressed his displeasure with claims brought. By the Swedish regulatory authority. Melanion Capital, a French asset manager. Launched a bitcoin-themed exchange-traded fund in Europe last year. Which is now available to investors. Following in the footsteps of the Melanion BTC Equities Universe UCITS ETF. The Melanion BTC Equities Universe UCITS ETF has named. Melanion Capital is a private equity business based in Paris. That invests in a variety of industries.
As Comair points out, “it is distressing to see policymakers and authorities. Call for such ill-informed decisions, which penalize a sector. With also a significant potential to play a key role in allowing the
European Union’s energy transition.” He went on to say that Thedéen’s comments demonstrate a “lack of grasp of bitcoin”. In addition to a “lack of comprehension of the European Union’s electricity mix.”
In the words of Comair, “Bitcoin mining consumes insignificant amounts of electricity. And the sector as a whole is rapidly becoming more energy-efficient and ecologically beneficial.” It is also the industry with the “largest renewable energy mix.” According to the professor.
As he pointed out, “the European energy problem mostly caused by electricity prices. Increasing in some regions while remaining relatively low in others. Where bitcoin miners prefer to join.” He also cited inadequate grid design and delivery as contributing factors.