Will Bitcoin mining be banned in Europe?

These days, in the past and certainly in the future as well, a lot of talk has been made about mining and always will be Bitcoin A hunger for energy.

Europe in particular seems to have taken this issue very seriously, especially in light of the accelerating energy crisis and Consequences of war.

All of this scares off miners, who may have to close their doors, but also Bitcoin in general, which is being pushed towards proof of stake.

In the end, fear can’t help but Also flowing to investorswho wonder what would happen to their beloved digital gold if it had to make fundamental changes.

The goal in this article is to assess the situation a little, try to understand whether it is possible to solve the problem and what the consequences of each decision will be.

Needless to say here Nobody has a crystal ballso it’s gossip and speculation, but they remain very likely scenarios given the paths we’re on.

Is Bitcoin really at risk? Can they really force him to prove the stakes? What will happen to the price in this case? All these questions and many more will be answered here.

In this video ETA encryption Explains the differences between PoS and PoW.

Why is Europe considering banning Bitcoin?

Let’s start by understanding one thing very well, the fact that Europe can and will Bitcoin mining bandoes not mean that they want to prevent currency circulation.

No, it seems that any law being studied does not appear to be aimed at undermining the cryptocurrency market in general, but rather aimed only at mining.

However, it is clear that Bitcoin became a problem Not to be underestimated in the modern world, especially in light of recent events.

The method of extracting it is based on Proof of Work, very powerful computers that run in a continuous cycle using beautiful kilowatts.

This is a method also used by other coins like Monero or Dojibut not at all at levels such as being comparable only in terms of energy expenditure.

On the other hand, Proof of Stake means that the network is run by people who block large amounts of Bitcoin on the blockchain, which reduces the work of computers.

It certainly doesn’t take a great mathematician to discover that with these greedy computers out of the equation, the world can use that surplus of saved energy.

Yes, because though There is no uniformity in thought Based on this, it is calculated that Bitcoin alone absorbs more energy than a small case, a really huge amount.

Thus, it is understandable that with the world running out of energy, cutting a leech like Bitcoin will cause the parties involved to take a shot at their arm.

How much can mining be banned?

This is a really hard question to answer, since there are too many factors at play that are beyond the power of a small arithmetic.

After doing some speculation and approximation, one can safely say that the odds are increasing day by day, just like Retail.

Bitcoin hash is that line that always goes up and never seems to go down (except when China issued a ban) and indicates the difficulty of the operations of various mining computers.

bitcoin code It gets more difficult With the increase in the number of mines, which means an almost continuous increase throughout recent history.

Today difficulty 100, tomorrow 101, in month 110 and so on. This means that different computers have to be upgraded to keep working, sucking up more power.

Therefore, if any member of the European Commission has bothered to glimpse this number, it is very likely that I understand that the problem You will grow and grow.

So, if bitcoin is hungry and energy is scarce every day, how likely is it that Europe would really want to ban mining?

impossible to say, But it goes hand in hand easily with the dreaded hash rate graph, which means it is rising steadily day by day.

It is not known how close we will actually be to embargo, but unless it is a significant turning point in the ability to produce cheap energy, this appears to be an inevitable fate.

How Dangerous is the Bitcoin Mining Ban?

Here, too, one can only speculate, but it is very likely that the repercussions of this decision will be much greater than those taken by China.

This is because China has always been a volatile partner in BitcoinHe comes and goes as he pleases, but everyone knows she will never be faithful.

On the other hand, Europe has always been a key element in this work, although it is not as important a factor as America or China at that time.

The real problem may be related to the fact that a large part of the free world will suddenly find itself against the largest representative of cryptocurrency.

This is certain It will not satisfy the big investors But, most likely, it will further alienate skeptics and possible mass adoption.

If something becomes illegal in some way, people tend to it Thus increasing distrust Towards this very thing, it doesn’t matter if mining is different from money.

Many people have no idea what Bitcoin is or how it works, so its illegality is likely to be seen as a sign of danger.

Moreover, to this problem, a larger problem will be added, namely decentralization the system itself and its general health.

Bitcoin mining and decentralization

Bitcoin is the cryptocurrency par excellence because it is the most decentralized, secure and relevant in the market, in addition to the fact that it was also the first to appear.

The beauty of Bitcoin is the fact that in addition to being decentralized due to the many nodes that maintain its health, it is also because of Spread in 4 corners of the world.

Mining is actually an industry that can be boasted almost everywhere (albeit in different proportions) and this is one of its great strengths.

Putting a noose on Bitcoin’s throat is difficult because it is subject to so many different legislation that the law in one country would not be a drama.

This is amazing This remains true even if Europe votes in favor of the banBitcoin is sure to survive, but it will start to get too concentrated.

Where do mining farms go Who immigrate from Europe? probably in United StateExactly where those who fled from China went.

someone else in Kazakhstan or Iran But at the end of the day, they will join other important columns that have already been tested extensively to avoid problems.

So, the logical consequence of that would be”Mining Central‘, which will become more clear if someone else follows the European example.

Could this happen? There is no certainty but it is not hard to believe that many countries would want to get rid of this burden.

What would that cause? Nothing in direct terms, but the tale of democratic and decentralized currency may begin to creak hard.

How can bitcoin avoid ban?

First of all, can Bitcoin really avoid ban? In the current situation, he appears to be in an uncomfortable position of being caught between a hammer and an anvil.

On the one hand, there are countries that cannot and do not want to support their own hunger, and on the other hand, the fact that Bitcoin is Double wire with working guide.

The security of the network, the trust placed in it, the business behind it and even the core of this coin are all encapsulated in this system.

when satoshi Bitcoin was invented, the energy crisis was not on the list and no one expected it, so the code did not take this into account.

Today the miners are facing Possibility of having to prove the stakewhich would solve the energy problem but would create a bigger problem.

Will investors still want to put their money into a cryptocurrency that has lost its core? Perhaps, but it would still be reasonable to expect a first crash, and possibly a future recovery.

Of course, there are those who say that Bitcoin does not bother anyone because it is used Renewable energy And such and such and such … It is true, but the world needs those kilowatts.

Maybe the European Council Doesn’t understand the importance of proof of workMaybe the energy expenditure isn’t a good investment for this business or maybe it’s still just water in his throat.

However, it remains important to understand that mining this currency is a form of business that pays taxes just like a steel mill or a shopping mall and manages huge capital.

What is certain is that if the decision were to cut Bitcoin, the EU would gain a few kilowatts but all parties involved would be poor.

Copywriter, born 1989.
I became an electrical engineer after completing my studies at the institute Mario Delpozo from Verzulo.
As a lover of discovery and an incurable traveler, I started talking about my backpacking adventures for a small amateur blog. From there I climbed the slope in small steps, and ended up tackling increasingly important projects. I am currently writing about what I am passionate about such as travel, photography, technology and cryptocurrency. Sometimes I do freelance photography with the publications (also) in the Green Guides at Touring Club. Sooner or later I will pack my belongings into a truck and dedicate myself to a digital nomad in the truest sense of the word.

My motto is? The world is a beautiful place and I want to see it all.

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