Bitcoin mining regulatory siege tightens » Social Investor


Bitcoin’s power consumption has raised all the alarm bells in recent months when it was discovered that its increase since 2016 until 2021 led to higher energy consumption than some sovereign countries. And in the face of these revelations, Regulated Magnifier focused on halting its mining operations.

The New York State — that according to the data collect him Cambridge Center for Alternative Finance accounts for nearly 10 percent of the mining rate of approx USA accounting for nearly 38 percent of the global total, this week announced a ground-breaking measure that could affect the future of bitcoin.

Governor of an American state which is the island of ManhattanDemocrat Kathy Hochul on Tuesday signed a two-year moratorium on issuing new licenses for fossil fuel-powered cryptocurrency mining operations.

The measure, which would also veto the renewal of these licenses for companies already operating in the state, unless they demonstrate that their energy sources are exclusively renewable.

All of them limit that, though does not mean that companies operating in the region immediately stop mininghighlights the environmental concerns raised by bitcoin’s operation.

Moreover, this regulatory siege is rekindling fears not only that other North American states will follow suit, but that other sovereign entities, such as The European Unionwhat already advocated a ban proof of work during discussions before the final text of the Mica Law was approved.

Bitcoin suffers from a mining methodology that Ether rejected

The measure approved in New York According to Governor Hochul, it was implemented to prevent an increase in emissions in the northern part of the country, where many bitcoin mining companies have been established in recent years due to old power plants. and production centers with unused electrical infrastructure.

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And despite the business opportunities presented by this use of old infrastructure, which fueled debate for months about the approval of this moratorium, the North American leader finally bowed to market pressure, which, as mentioned, is concerned about the emissions of cryptocurrency technology.

To Europesuch as the final text Confirmed for Mica Law on the Regulation of Cryptocurrency Assets did not prohibit the mining of bitcoins and other cryptocurrencies that use the methodology proof of workhowever, pointed out that crypto-active market players must declare information about their environmental and climate footprint, and was given another two-year margin to decide whether to apply similar rules to New York.

“In two years, European Commission will have to report on the environmental impact of crypto-assets and introduce mandatory minimum sustainability standards for consensus mechanisms, including proof of work“, can be read in the text of the continental organization.

The introduction of countermeasures to this mining methodology that not only exerts pressure bitcoin, which continues to hover around €16,000 after the FTX crashhowever, they also slightly tip the balance of future prospects in favor of ether, after cryptoasset joined the 2.0 grid, which reduced energy consumption by 99 percent and received industry applause.

So bitcoin’s regulatory siege is tightening, and its survival in a regulatory framework poised to accelerate after the FTX collapse points to two paths: intensive use of renewable energy or a shift to a new form of mining.


Source: news.google.com

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