after what happens in New York StateIn the US, where they are about to ban Bitcoin mining based on Proof of Work (PoW), how likely is it that something similar could happen in Europe as well?
Does Bitcoin in Europe have the same fate as the United States?
First of all, two important details should be highlighted to understand what the real risks are.
The first is that New York State will not ban Proof of Work mining entirely, but is instead on the verge of enforcing a “overhaul” of the overall environmental impact of mining farms that mine Proof of Work cryptocurrencies, such as Bitcoin.
Therefore, it will not be a real outright ban, but rather a ban on continuing operations for all miners who cannot prove that they have The environmental impact is below a certain threshold.
However, it must be said that anyone who buys electricity from outside suppliers may find it so difficult to prove that they are using clean energy that they have to give up mining.
It is possible that even in Europe the same reasoning will be presented, given that the only real big problem with the possibility of proof-of-work is power consumption. coming in particular from polluted sources.
The second detail is that the discourse in this case does not concern all of Europe, but only the twenty-seven member states of the European Union.
In fact, the potential ban on mining is linked to specific regulatory decisions in the European Union.
European regulations on bitcoin mining
Actually I First Attempts In this sense, it seems that the European Union has not succeeded, to the point that there is currently no ban, and there is not even any bill ready to be approved in this sense.
But especially after what happened in New York StateIt seems likely that sooner or later the EU will be able to get some similar legislation approved.
For example, it should be noted that within the state of New York there are some bitcoin mining farms that use domestically produced electricity from renewable sources, so even if these mining farms are banned, it is very likely can continue to work. Something similar could happen in the European Union, where, for example, there are already many mining farms that use self-produced hydroelectricity, or are purchased exclusively from certified producers.
So it will not be a complete ban. Moreover, the ban will only concern mining activities, which in any case will be carried out elsewhere.
News about the ban
But there are two fake news that are widely circulated, especially on the Internet. regarding this possible ban.
The first argues that the energy consumption of bitcoin mining is increasing and will increase more and more.
Instead of starting from December last year The increase appears to have stopped, for now. Moreover, with the reward halving for miners every four years, it is inevitable that depreciation will fall, sooner or later, because this depends precisely on the size of the mine’s revenue, from which The prize is by far the biggest piece.
The second is that a physical ban may also force Bitcoin to do so Go to Proof of Stake.
This news is completely false for three reasons.
The first is that so far it seems virtually impossible to change the Bitcoin protocol to the point of substituting PoW for PoS. So the risk of having an alternative in this sense is Practically nothing.
The second is that the ban refers to mining activity, not to exchanging or paying with bitcoin. So it does not apply to the Bitcoin protocol, But only for miners.
The third is that if mining is banned in one region, miners will move to other regions, as happened last year for Chinese miners who moved to Kazakhstan, or even to the United States itself.
In fact, specifically in the USA while the state of New York prohibits mining with PoW lo Texas State he is We happily welcome many Bitcoin miners.
Therefore, not only will Bitcoin remain dependent on PoW, Bitcoin will continue to be mined using PoW, and only miners will move from places where they are not allowed to do so, to other places where they are welcome.