EU Lawmakers want Bitcoin (BTC) mining banned: Favor Ethereum (ETH) instead

Key Takeaways:

  • Some European Union officials have called for a ban on Bitcoin mining
  • According to the lawmakers, Bitcoin mining is very energy intensive
  • They have instead called for Bitcoin to switch to Proof of Stake, like Ethereum
EU officials want Bitcoin (BTC) mining banned: Favor Ethereum (ETH) instead

YEREVAN (CoinChapter.com) – As recently-revealed documents reveal, Bitcoin (BTC) continues to trouble European Union (EU) lawmakers. The decentralized network on which BTC thrives is not as appealing as some of its counterparts. They hence want to ban BTC mining. The reason? Well, Bitcoin uses the Proof of Work (PoW) protocol which is very energy-intensive. However, the officials have no issues with Ethereum as the network prepares to upgrade to the Proof of Stake (PoS) protocol. 

The minutes of a European Commission meeting from last November reveal how EU officials fail to appreciate the importance of decentralization for Bitcoin. During a discussion with Swedish financial regulators, the EU lawmakers went as far as suggesting an outright ban on the mining and use of BTC. 

Recovered documents by German site NetzPolitik.org reveal the problems of BTC investors did not bother EU officials. Clearly batting for ETH, the bearcats demanded Bitcoin follow Ethereum’s path.

“PoW versus PoS: Ethereum started moving PoW to PoS because of its community. Suggests that one could also migrate BTC from PoW to PoS. If Ethereum is able to shift, we could legitimately request the same from BTC. We need to “protect” other crypto coins that are sustainable. Don’t see need to “protect” the bitcoin community,” 

they slammed.

However, if the environmental concern is the pressing issue, the EU officials are wasting their time. Banning BTC mining in the EU is a useless exercise. According to BTC mining statistics, only a fraction of the global BTC comes from the European Union. 

Bitcoin mining share
Global Bitcoin (BTC) mining share. Credit: Cambridge Bitcoin Electricity Consumption Index

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The world is grappling with a power crisis, Bitcoin mining is a burden.

To be fair, the European lawmakers have a valid reason to be worried. The recent war in Ukraine, caused by Russia’s invasion of the country, has resulted in energy uncertainty. 

While sanctions intensify on Kremlin, Europe has to make arrangements to reduce its dependency on Russian oil and gas. At the backdrop of such a crisis, allowing Bitcoin mines to eat up valuable energy seems illogical.

According to Cambridge Bitcoin Electricity Consumption Index, the world’s largest crypto is increasingly consuming more power.

Bitcoin mining is a burden.
Total Bitcoin Electricity consumption is increasing. Credit: Cambridge Bitcoin Electricity Consumption Index

However, EU lawmakers are not the only worried ones. Last year, U.S. Treasury Secretary Janet Yellen termed Bitcoin “extremely inefficient.”

“It is an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering,” 

she told CNBC’s Andrew Ross Sorkin at a New York Times DealBook conference. 

Many environmental activists and NGOs working for the environment agree with her. Meanwhile, lawmakers in New York State also want to pass a law that will forbid issuing or renewing licenses for fossil fuel-fired mining operations in the state. BTC miners in the state will take a hit as a result.

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Bitcoin, EU Lawmakers want Bitcoin (BTC) mining banned: Favor Ethereum (ETH) instead

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