TECH

European Union at war with Bitcoin, because of the energy crisis

Bitcoin and many other cryptocurrencies have collapsed in recent months, yet the miners, and their computers, are still up and running, firmly in place, and have no intention of stopping their activities.

However, this is where the shoe gets tight, as these machines consume energy, and this energy will be lacking in other more important sectors, and if we take into account that the winter will be harsh, you can already imagine where the energy will be cut.

Europe is preparing to live at the pace of energy shortages in the coming months. Russia is to blame for invading Ukraine and being sanctioned by Western countries. In retaliation, Russia has drastically reduced gas supplies to Europe, plunging the continent into uncertainty.

In order to achieve energy savings this winter, the European Commission has asked Member States to implement devices that reduce the electricity consumption of crypto miners.

In other words, bitcoin miners may have to shut down their machines in the event of a power outage. "If it is necessary to carry out load cuts in electrical systems, Member States must also be prepared to stop the exploitation of crypto-assets", reads a document dated 18 October on energy policy to be carried out in Europe.

On paper, we can understand this desire of the European executive: cryptocurrency mining is not an essential activity, mainly because its energy consumption is sustained. It remains to be seen how Brussels, and the 27, can, in practice, "cut" the electricity of all those who mine bitcoin.

mundophone