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    HomeBitcoinEU And Sweden Discussed Banning Bitcoin Proof Of Work: FOI Documents

    EU And Sweden Discussed Banning Bitcoin Proof Of Work: FOI Documents

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    Sweden’s authorities is urging the European Union to ban energy-intensive cryptocurrency mining methods comparable to these employed by Bitcoin.

    Certainly, in keeping with paperwork obtained via a freedom of knowledge request, EU officers mentioned the deliberate ban on Bitcoin buying and selling with their Swedish counterparts throughout a latest debate on the laws to abolish Proof of Work mining.

    In line with officers, such practices can’t be accepted at a time when all states should urgently scale back their vitality utilization to be able to battle local weather change.

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    Kind Bitcoin POW To POS

    An unnamed discussion board participant said that bitcoin ought to be inspired emigrate to a extra ecologically pleasant proof-of-stake (PoS) protocol, as rivals comparable to Ethereum have already finished, and that he didn’t “see the need to ‘defend’ the bitcoin group.”

    Cryptocurrency mining depends closely on proof of labor, each to confirm transactions and to create new tokens.
    Due to proof of labor, peer-to-peer cryptocurrency transactions may be carried out safely with out the involvement of a 3rd get together.

    With every further miner, the quantity of vitality wanted to do proof-of-work will increase exponentially.

    Picture credit score: Medium

    Proof of Stake (POS) was one in all a variety of progressive consensus methods developed as a alternative for proof of labor.

    ‘Financial Injury’ From BTC Mining

    Björn Risinger and Erik Thedéen, administrators of the Swedish Environmental Safety Company and the Swedish Monetary Supervisory Authority, respectively, wrote an open letter to the EU in early November to warn of the nation’s extreme financial injury from crypto mining.

    Between April and August 2021, vitality utilization related to crypto mining surged “a number of hundredfold” in Sweden. In line with officers, this at the moment equates to the vitality consumption of 200,000 households.

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    BTC complete market cap at $775.42 billion on the every day chart | Supply: TradingView.com

    Vitality Hungry

    In line with the College of Cambridge’s Bitcoin Electrical energy Consumption Index, BTC consumes round 130 terawatt-hours of electrical energy yearly.

    They anticipate a rise in that determine. By comparability, Germany as a complete utilized roughly 488 terawatt hours of electrical energy in 2020.

    Whereas that is an imprecise estimate, few specialists deny that Bitcoin and different cryptocurrencies require monumental portions of electrical energy.

    When requested in regards to the impact of an outright Bitcoin ban on traders and retail merchants, officers expressed a common lack of fear, noting that every one Bitcoin traders are totally conscious of the draw back danger.

    A Contentious Topic

    Sure sections of the report have been deleted to guard particular person privateness or as a part of a “ongoing decision-making course of,” implying {that a} coverage on the topic continues to be being created.

    Swedish authorities have already expressed their need to remove proof-of-work for environmental grounds.

    These information, nonetheless, present unprecedented perception into the lengths to which some EU authorities are prepared to go to be able to rein in mining-related vitality consumption.

    Whereas PoS cryptocurrencies look to be resistant to broad regulatory motion within the close to time period, Bitcoin mining will stay a contentious topic within the EU.

    Featured picture from DZone, chart from TradingView.com



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