Bitcoin has fallen again to the $40,000 mark. There is the main reason for Bitcoin being bearish.
The latest round of EU the European parliament held recently. Many facts belong to Digital assets and Russian Sanctions have been the main topic.
Officials and Government heads from the European Union( EU) have been discussing banning Bitcoin (BTC) Proof of Work (PoW) Minning. This debate happened a reason according to documents obtained by various parties and organizations.
According to a report published by Netzpolitik, a German digital culture organization, officials and heads of the EU have concerned about they should enforce an all-out ban on trading bitcoin attached to Bitcoin mining to control the energy consumption. Sweden’s government is forcing the European Union to ban Bitcoin to save energy consumption.
Bjorn Risinger and Erik Thedeen the directors of the Swedish Environmental protection agency and the Swedish Financial Authority have written a letter to the EU at the end of the last year. They have mentioned that Sweden is suffering from severe economic damage from Crypto mining.
University of Cambridge Electricity Consumption index shows the power used for Bitcoin Minning. Its nearly around 130-140 terawatt-hours of electricity every year.
So with all these details, the EU has a special eye on Bitcoin and its mining process. Last year China imposed a ban on Cryptocurrency calling that Bitcoin and its mining process waste so much power and its helping global warming.
So a debate was held on legislation to abolish Proof of Work (Pow) mining.
Many officials have suggested that Bitcoin should change to an environmentally friendly proof-of-stake(Pos) protocol.
Furthermore, they have mentioned Ethereum was able to change its mechanism to proof-of-stake so Bitcoin also has to make that difference. Cryptocurrency and Bitcoin mining relies on proof-of-work to verify transactions and create new tokens. With proof-of-work peer-to-peer cryptocurrency transactions can be conducted safely even without a third party.
Some suggest that the EU should have a blanket ban on Cryptocurrency and should remake its laws and force the community to change into a Proof of stake mechanism. However, the EU has not yet made a clear decision on it but there might be a danger.
You can clearly see after the Market was recovering with these EU parliaments crypto-related news had made the market suffer