thecoinrise.com
Erik Thedéen, the vice-chair of the European Union Securities and Markets Authority (ESMA) has raised a concerning objection to the use of clean energy sources for Bitcoin or Proof-of-Work (PoW) mining amongst EU nations. Speaking in an interview with the Financial Times, Thedéen said Bitcoin mining and its energy utilization has become a matter of “National Issue,” one that countries are expected to take a special exception to.
Thedéen believes the use of renewable energy for Bitcoin mining can prominently derail the region’s climate change goals, and as such, he advocated for proof-of-stake (PoS) blockchain protocols as a better, energy-efficient alternative:
“We need to have a discussion about shifting the industry to a more efficient technology.”
Bitcoin and a handful of altcoins still run on the (PoW) model of validating transactions. While there has been a lot of debate over the energy efficiency claims of the crypto mining industry by key figures in the industry in the past year, many have come to terms that renewable energy sources including nuclear options are ideal for the digital currency industry to thrive.
With many critics around, Paris-based alternative investment firm, Melanion Capital stood up for the cryptocurrency industry last year when it noted that the decentralized nature of the industry “should not be taken as an opportunity to implement measures rendering illegal an industry for its lack of defensive powers.”
Coming off from its Worst Days
Beyond the European Union regulator, the claim of crypto’s energy inefficiency has caused a lot of upset in the industry, one that the ecosystem is gradually recovering from. The Chinese government sent miners packing last year, leading to the largest migration of mining hashrate in the history of the industry.
The ban was however a blessing in disguise as it tore apart the centralization of mining power that China enjoys as countries like the United States, Kazakhstan, Iran, and Russia have opened their doors to welcome miners.
Industry giants including Tesla were also a loud voice when it comes to criticizing Bitcoin’s excessive energy usage last year. The electric automaker rescinded its decision to accept Bitcoin payments on grounds of its energy consumption and promised to reinstate this service when at least 50% of the coin’s mining is done using renewable energy.
It is still too early to determine how Thedéen’s clamor will influence policymakers, however, the switch to renewable energy is backed by many industry leaders and is billed to usher in less controversy for the industry in general.