Speaking during a panel at the Crypto Bahamas conference, Demirors said politicians globally want to ban Bitcoin over energy consumption, but in reality, they are threatened by the asset’s decentralized nature. She believes attacking mining is an almost sure way to tackle the threat posed by Bitcoin, and a successful ban on proof-of-work will likely result in the overall crush of the crypto market. Demirors further warned that the tight regulations could easily shift to the energy-efficient proof-of-stake despite the focus on proof-of-stake.
Bitcoin plunges to below $35,000
Her warning emerged before Bitcoin, and the general crypto market suffered a massive price correction, trading below $35,000. As reported by Finbold, on May 8, Bitcoin traded at $34,600, an almost 10-month low price level. However, the strategist exuded confidence that the attempted ban on Bitcoin will not materialize because the asset has a strong community, and decentralization is the right thing to do. Speaking during the panel, Elizabeth Stark, co-founder, and CEO of Lightning Labs, also reiterated that attacks on Bitcoin are due to its decentralized nature.
Lawmakers enacting PoW legislations
The warning comes when more jurisdictions are working on laws likely to ban proof-of-work protocols due to high energy consumption. For instance, lawmakers at the New York Assembly passed a bill that would have imposed a two-year delay on certain areas affecting proof-of-work crypto mining businesses in the state. According to the bill, authorities need to conduct a comprehensive study before moving forward. However, the bill suffered a setback with the Senate Environmental Conservation Committee reportedly opting not to take up the legislation at its last meeting of the current legislative session. Elsewhere, as reported by Finbold, the European Securities and Markets Authority (ESMA) was pushing for a European Union ban on cryptocurrency mining for assets backed by proof-of-work (PoW). However, the EU parliament voted against banning PoW mechanisms. Although Bitcoin is moving towards mass adoption, the asset has been held back over concerns about energy consumption. Notably, Ethereum, the second-ranked digital currency, is shifting towards the proof-of-stake protocol, and there are calls for Bitcoin to follow suit. In this line, environmental organization Greenpeace alongside Ripple’s co-founder Chris Larsen unveiled a lobbying campaign pushing for Bitcoin to move towards PoS. Most lobbyists are seeking to demystify common myths around Bitcoin’s energy consumption. Despite the energy concerns, the latest data indicates that Bitcoin’s impact on the environment might not be that damaging as reported. A report by the Bitcoin Mining Council revealed that during 2022 Q1, Bitcoin’s electricity usage reduced by about 25% compared to the same period one year before. At the same time, miners are increasingly leveraging renewable energy to reduce Bitcoin’s carbon footprint.
