Bitcoin [BTC], the first and most popular cryptocurrency, was created as a solution to get beyond the limitations of centralized systems. It was the money designed for the common man. While the asset remains all of those things, it has also attracted the attention of environmental activists from all over the world. This reached the government officials, as the European Union [EU] was on the threshold of prohibiting the use of the mechanism that powers Bitcoin.
Climate change has become an alarming concern to many, ergo, governments across the globe have been exploring sustainable and eco-friendly lifestyles. Now, Bitcoin employs the proof-of-work [PoW] computing process which is energy-intensive and has thus, been a target of many environmentalists.
EU will vote on the Markets in Crypto Assets draft legislation on Monday, which seeks to tighten regulation around digital assets by licensing them and streamlining a uniform set of rules for member states.
The Bitcoin community was visibly concerned. But, Jeremy Allaire, the CEO of Circle Pay suggested otherwise. He tweeted,
“Extremely high stakes vote in the EU. That such a proposal made it this far is extraordinarily concerning and unlikely to stand up to practical reality.”
The crypto community was quick to assemble and dissect the matter. A Messari report shared by many pointed out how the carbon emission of Bitcoin was dainty compared to that of other industries.
Bitcoin emits less CO2 compared to Gold
Gabor Gurbacs from VanEck suggested that the EU should consider banning several other industries before eyeing Bitcoin. The report highlights how BTC emitted only 41 metric tons of CO2 while the Gold industry emitted 122.5 metric tons of CO2 in 2021.
A few others stressed the fact that the EU wasn’t a hot spot for Bitcoin miners. From China to Kazakhstan, BTC miners have been displaced all over the world following abrupt outbursts from the government. However, mining firms have jumped back into action in no time. Now, as the possibility of the ban surfaces, the community suggested that they did not have to worry much as the EU did not harbor major Bitcoin mining rigs.
Amidst regulatory uncertainty, Bitcoin was sinking below the $40K zone. At press time, BTC was trading for $38,927 with no major changes in its price over the last 24-hours.