Next, is the EU going to ban Bitcoin mining?

EU regulators are calling for restrictions on the energy-intensive cryptocurrency mining model, following China's ban on cryptocurrency mining last year.

According to the Financial Times, the European Union's top financial adviser has called on the EU to limit the growth of bitcoin mining. Erik Thedéen, vice-president of the European Securities and Markets Authority, said bitcoin mining has become a “national problem” in Sweden and that cryptocurrencies pose a risk according to the Paris Charter.

Teden hais.European regulators should decide to limit the "PoW" (Proof of Work) mining model and force the industry to switch to the energy-intensive "PoS" (Proof of Stake) model to reduce energy consumption and not too much waste. electricity.

Swedish police warn that more and more renewable energy is being used to mine cryptocurrencies.

Now the two most traded cryptocurrencies, Bitcoin and Ethereum, are adopting the PoW model, which requires everyone involved in the blockchain digital ledger to analyze the market, the biggest problem, one of these principles being the use of great forces.

Use bitcoin as an example, since bitcoin generates blocks every 10 minutes and offers blockers to producers with certain rewards and exchange rates as a boost, "miners" who want to reap the rewards may well use all of their computing resources to work on uninterrupted interference. . makes the results huge. waste energy.

According to Blockchain.com, cryptocurrency mining has become a lucrative and competitive business with data levels of computing power.

Cambridge Bitcoin qhia power consumption index:Bitcoin mining consumes 0.6% of the world's total energy and consumes more electricity than Norway each year.

"The solution is to disable PoW mode. The power consumption profile of PoS mode is lower," said Thedéen. He is also secretary general of the Swedish Financial Services Authority and responsible for sustainable finance of the international organization Iosco.

The idea of ​​restricting leadership first surfaced in Sweden last November. Noting that more and more renewable energy is being used for cryptocurrency mining, “the relative value of crypto-assets is questionable.”

Regarding the estimate from Sweden's governing body, the University of Cambridge, she said:Mining 1 unit of Bitcoin uses the same energy as an average electric car with a distance of 1.8 million km.

Thedéen warns that it is incredible that Bitcoin mining uses more renewable energy instead of moving traditional resources away from impactless coal power.

In the United States, lawmakers are still considering the energy consumption impact of Bitcoin mining. Coinphony was announced on January 20 by the U.S. Energy and Commerce Commission, an oversight and research subcommittee charged with investigating the impact of power mining on mining operations. cryptocurrency.

Specifically, Ethereum said it will transition to a low-power point-of-sale model in June, allowing users to earn the right to track transactions based on how much they have invested in the network.