While cryptocurrency like Bitcoin is in high demand, Europe could ban its mining. But why?
The world of cryptocurrency is more popular than ever. For example, interest in the largest currency, Bitcoin, is steadily rising. Still, the future of the new currency is not necessarily certain. This is partly due to the impact of cryptos on the environment. Would that be reason enough for Europe to ban Bitcoin mining?
Is Europe going to ban Bitcoin mining?
It is no longer a secret that cryptos have a significant impact on the environment. After all, the coins have to be mined and that costs enormous amounts of electricity. Bitcoin, for example, is estimated to cost nearly 150 terawatt-hours of electricity annually, roughly 36% more than the whole of the Netherlands uses annually.
That is why some top men of the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency are calling for a ban on mining Bitcoin Europe. In fact, all cryptocurrency mining should be banned, Euronews writes.
But would it help?
While the environmental impact of cryptocurrency is undisputed, there’s a lot to be said for a potential ban. The idea behind the ban is a bit strange; Europe should ban coins like Bitcoin from mining to meet the Paris climate goals.
Noble, but by far the majority of all Bitcoin is mined in China. That country is notorious for its very shady climate laws and an overall reliance on coal, a very climate-unfriendly fuel.
In addition, one currency is not the other. Bitcoin is a fairly environmentally unfriendly crypto across the board, but Europe would also ban the mining of more conscious coins. In this way it counteracts developments in that area.