Erik Thedéen, vice-chair of the European Securities and Markets Authority, stated that Bitcoin mining has become a national concern and warned of environmental and climate change risks. Thedéen has requested European authorities to consider banning proof-of-work mining, which is employed by Bitcoin and numerous other blockchains (including Litecoin), in order to encourage a transition in the sector toward more energy-efficient alternatives like proof-of-stake mining (PoS).
Thedéen’s remarks were in line with China’s efforts to limit Bitcoin mining. China banned crypto mining in May 2021, prompting mining companies to relocate to more energy-efficient environments. According to a third-quarter report from the Bitcoin Mining Council, China’s ban has actually increased the use of renewable energy for crypto mining, with renewable energy accounting for 58 percent of Bitcoin’s network in the third quarter of 2021.
Melanion Capital, a Paris-based alternative investment firm, rebutted Thedéen’s concerns about PoW, calling a crypto mining ban “totally ignorant.”
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