Europe wants to rank cryptocurrencies by energy efficiency

In a document published this Tuesday (18), the European Commission is once again annoyed by the energy consumption of mining Bitcoin and other cryptocurrencies. As a highlight, it points out that energy use by cryptocurrencies has grown by 900% over the past five years and has doubled from the last two.

Although Ethereum has migrated to Proof-of-Stake, it has made room for miners to install more Bitcoin ASICs. In addition, some professionals still believe in mining smaller cryptocurrencies such as Ethereum Classic (ETC) and Ergo (ERG).

Therefore, one of the solutions proposed by the European Union is to classify cryptocurrencies based on energy efficiency. Something very common here in Brazil in household appliances such as refrigerators and air conditioners.

Energy efficiency stamp.

“Controlling the energy consumption of the ICT sector, including an environmental label for data centers, an energy label for computers, measures to make the energy consumption of telecom services more transparent and an energy efficiency label for blockchains”proposes the European Commission.

In other words, this would be tied not only to the ASICs or video cards themselves, which have varying degrees of efficiency, but also to the cryptocurrency itself.

In the case of Bitcoin, it is estimated that the largest cryptocurrency in the market would be at its worst possible level. After all, this is the most energy-hungry cryptocurrency in the world. As for Ethereum, it would likely be on the other side as it exited Proof-of-Work last month.

Bitcoin miners may be shut down in Europe

While it’s hard to imagine how a proposed Europe’s energy efficiency label could help us, other explanations are even more worrying. According to the European Commission, mining companies can be closed if other industries need the energy.

“If there is a need for load shedding on electrical systems, Member States should also be ready to stop mining cryptocurrencies.”

In the US, however, this has already happened amicably. In June of this year, during the northern hemisphere summer, a major mining company turned off all of its equipment between 3 p.m. and 7 p.m. so Texas residents could turn on their air conditioners to withstand the 40-degree Celsius heat.

Finally, the subject is controversial and far from an agreement between the two parties. Environmentalists argue that mining Bitcoin is a waste of energy, while enthusiasts point out that such energy makes Bitcoin so safe.

Source: Live Coins