Is it Possible to Ban Proof of Work Bitcoin Mining in Europe?

The latest news from the United States, specifically the state of New York, whose assembly passed a bill providing for a two-year moratorium on all new Proof of Work (PoW) fueling its operations using fossil energy, has also raised significant concerns in Europe.

Indeed, if recently an amendment to the Regulation on New Markets in Crypto Assets (MiCA) under discussion in the European Parliament, which requested Proof of work call On the continental lands, the issue seems to be far from resolved.

Indeed, some countries, notably Sweden, do not seem willing to tolerate mining activity that appears to jeopardize the environmental remediation targets that the European Union has set for itself for some time now. The Scandinavian bloc led by the Scandinavians may soon return to the position, and as a result, many are wondering what can happen in this regard.

However, the discussion should be cleared beforehand of some real hoaxes and real data taken into account. So let’s try to put a minimum order to try to better understand the problem and the possible effects.

New York State Does Not Ban Bitcoin Mining

The first fact to consider is that New York State does not absolutely prohibit bitcoin mining. Invoice provided by Anna Kellysin fact, it imposes a 2 year suspension Approval of any new Bitcoin mining activity and renewal of permits issued to existing mining farms that demonstrate work using energy derived from fossil sources.

Having won the support of 95 deputies to 52 deputies, the law will now be introduced Kevin Parker to the State Senate, and, if approved, shall be handed over to the Governor Kathy Hochhol, who is responsible for signing it or objecting to it. Ahead of the discussion, the Blockchain Association sought to pressure representatives by inviting pro-money innovation in New York to understand their mood, and sending messages to that effect to lawmakers. A pressure act wasn’t successful, though.

The fact remains that miners who use fossil fuels will be affected by this measure, while those who have already shifted toward renewables will be able to continue operating with complete peace of mind. Others were left with only two options to continue their business: adapt and go towards sustainable mining, or move to other parts of the country, for example in Texasas there do not appear to be similar environmental concerns.

Is the energy consumption of mining really exploding?

The second issue that should be carefully discussed is that of Actual consumption related to bitcoin mining. For a long time, the thesis that it was excessive and endangered the environment was favored. A hypothesis, however, seems very useful, if we take into account that there are many other activities that involve energy use ten times higher, starting with those associated with the traditional banking system. However, in this case, no one goes so far as to demand that these activities be banned. Obviously one has to add.

It is also necessary to stress how often the data brought in to support these theses differ from one another. In particular, the data released by Cambridge Bitcoin Electricity Consumption Index (CBECI) and BTC Energy Consumption Indicator formulated by digiconomist.netthat is, the two sources that are often cited in this type of discussion, see a measurable difference in the order of 44%. Real enormity is like arousing more than doubt.

In the discussion about the data in question, a recent report by the Bitcoin Mining Council, the network founded on the impulse of Elon Musk with the specific intent to reach a more environmentally friendly block mining activity, like a classic stone in a pond, was dropped. She is joined by many prominent figures in the crypto world who believe they can reach an honorable compromise between production needs and environmental protection.

According to the association, in fact, not only is mining not as polluting as its critics claim, but the energy used to support it represents only 0.16% of the total energy produced on the planet. The truth that rises to 0.85% In relation to the carbon dioxide produced by the respective production processes. According to BMC, these numbers do not justify the now evident institutional aversion to this activity.

It should also be emphasized that to support the theses of the Bitcoin Mining Board, there will be the latest data, specifically from digiconomist.net, which will in particular prove that the consumption associated with Bitcoin mining will be in stagnation. In fact, after the reward is halved due to the miners, the activity must be reduced precisely because of the reduction in comfort in the same thing. The data that sparks discussion often appears to be put into the background.

Is the possibility of Bitcoin turning from PoW to PoS real?

Over the past few months, more than one vote has been raised to suppose the possibility of a Bitcoin shifts from Proof of Work to Proof of Stake consensus algorithm. The reason lies in the advantages that the latter can offer in terms of scalability and convenience. In practice, the use of PoS mechanism will not only allow more convenient transactions, but also less stress on the environment.

From this point of view, it is also necessary to remember one Contraindications in terms of safety, is not trivial. The fact that more hashes are needed puts the Bitcoin blockchain into action from hacker attacks aimed at controlling the network, the so-called 51% attacks Which is a real concern for any network. Those who manage to complete one are, in fact, able to give life to processes like double spendingor double spending the same token, such as delegitimizing the affected blockchain.

In order to complete a 51% attack, it is practically necessary to be able to achieve the same percentage of the amount of power in the network. If you want to use ASIC devices like Antminer S19 Pro 110 TH/s, you’ll need hundreds of thousands of them, with Expenditures equal to a few billion dollars. These numbers are clearly intended to discourage any intent to that effect.

Alternatively, one can consider renting the necessary computing power in the cloud. In this case, the necessary expenses will be much less significant, amounting to hundreds of thousands of dollars. Also in this case, we charge very large sums for ordinary cybercrime. A financial institution could think of it, but such an attempt would soon become public property, discrediting those who make it and prompting its owners to sell all their bitcoins outright, turning into a financial bath.

Precisely for this reason, many believe that Bitcoin will not turn into Proof of Stake, unlike Ethereum, which is moving towards staking. A process that proved to be slow and difficult, but one was already beginning to think that it could give life Undermining the balance of power Currently among the dominant players in the crypto sector. But that’s a whole other story.

Read also: Proof of Stake What is it and why is it gaining more and more followers

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