Ecology: Bitcoin threatened more than ever by the EU?

To limit the growing consumption of electricity in the crypto industry, the European Union plans to set up an energy efficiency label. This label will be instituted to curb energy-intensive crypto-currencies like Bitcoin.

EU wants to encourage eco-friendly cryptos

The executive arm of the European Union, the European Commission has undertaken to do deep work with international partners. She wants to offer a classification system of cryptographic protocols according to their respect for the environment.

The protocols operating on the basis of less energy-consuming networks such as proof of participation will be favored compared to others. The EU proposal which is expected to come in the next few days will have a positive ecological impact.

The project will also target miners and their high energy consumption. Considering the reduction in the availability of energy resources at the moment caused by the conflict between Ukraine and Russia, the EU will encourage countries to control and ration the energy consumption of miners.

The European Commission has put forward the increase in the number of cryptocurrencies as an argument. The more digital currencies are integrated into everyday life, the more energy they will require.

The executive arm of the EU wants anticipate the development of blockchain technologies. Since cryptocurrencies are changing rapidly, one should steer the industry towards the most energy-efficient protocolsthis is the mission given to itself by the European Commission.

The future of Bitcoin is uncertain in Europe

The countries of European Union account for approximately 10% of Proof of Work usage in cryptography. This is the energy-intensive protocol that miners in the Bitcoin use to issue new coins.

Since the EU wants rationalize the use of energy consumption in its territory, this will inevitably have an impact on the Bitcoin network. Indeed, this could be felt globally.

The decision that had previously been taken was to ban crypto-currencies using “proof of work” because it is very energy-intensive. But then the body decided to require that the companies that supply the cryptocurrencies should communicate energy consumption figures and the impact of listed digital currencies on the environment.

Depending on the system the EU wants to put in place, countries will have an important role to play. They must stop offering tax breaks to crypto miners who usually use high energy consumption in their activities. In addition, they will have the freedom to decidestop mining activities when their countries will be power shortage.

With such an operation, the EU hopes to be able force the hand of cryptocurrency projects to change their mining protocol. Ethereum has migrated its network to proof-of-stake. This reduced its power consumption by 99.9% compared to its initial protocol.

Invest in a profitable ecological project

It is recommended to invest in a sustainable project that fight for the preservation of the environment. Therefore, not only will the EU project not be detrimental to you, but also your investment will be profitable.

TAX is a crypto project that aims to enable people and businesses to generate income by taking care of the environment. Thanks to this cryptocurrency, everyone can take a stand on environmental issues.

Ecology Bitcoin threatened more than ever by the EU

On its platform, IMPT plans to distribute carbon credits fairly. So it is possible to buy, sell or withdraw carbon credits. Those who withdraw carbon credits are encouraged by granting NFT because they contribute to the reduction of the carbon footprint.

In addition, will finance many ecological projects through various partner organizations in the project. This could concern the creation of green spaces or others.

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Ecology: Bitcoin threatened more than ever by the EU?

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