Another bad news for the entire crypto market is when the European Union (EU) is in consideration to completely block cryptocurrencies produced through the Proof-of-Work (PoW) consensus mechanism.
It is understood a vote on PoW sanctions will take place on Monday, involving all EU members.
If restrictions on this method are passed, it is not impossible that the crypto market will record more declines because of course the results of the vote will affect all EU countries.
What prompted this action?
EU countries are concerned that the continued implementation of PoW will have a negative impact on the environment, thus becoming a tool for an entity to avoid economic sanctions.
For example Russia which uses cryptocurrencies to evade economic sanctions following its invasion of Russia.
But what is more important is the impact of PoW use on the environment as the production of Bitcoin (BTC) affects the environment with large amounts of carbon to the point of exceeding EU -set environmental standards.
Why does PoW damage the environment?
Crypto production using this consensus uses high electrical energy.
PoW also produces a high amount of carbon.
Cryptocurrencies that use PoW: Bitcoin, Litecoin (LTC), Dogecoin (DOGE).
Because of that some proponents of crypto such as Circle CEO Jeremy Allaire and Head of Unstoppable Finance Strategy Patrick Hansen are worried because the poll has a high chance of being approved.
In contrast to Core Scientific founder Darin Feinstein who believes if the vote is passed, the proposal will be absolutely controlled by the EU.
Through a tweet posted on Twitter, Feinstein also revealed that in fact the EU bitcoin mining industry only consumes 0.198% of the total electricity consumption for the whole EU.
The EU PoW ban protects legacy dynasties at the expense of innovation, individual liberty and is a move toward totalitarianism (#CBDC) #Bitcoin mining in the EU consumes .198% of EU energy generated annually - an inconsequential#
Lesson: Single Issue Voters must protect #BTC pic.twitter.com/bKYYxlEgLc
- Darin Feinstein (@DarinFeinstein) March 12, 2022
Based on this fact, wouldn’t it be appropriate if Bitcoin (BTC) was saved from falling victim to totalitarianism?
At the time of writing, Bitcoin (BTC) is trading at $ 39,092.34 per unit, down 0.09% in 24 hours.
