According to Meltem Demirors, the chief strategy officer of the $5 billion worth crypto asset management business CoinShares, the proof-of-work idea is being used as a cover for countries to outlaw Bitcoin.
Demirors claimed that governments throughout the world want to outlaw Bitcoin because of its high energy usage, but in truth, they are concerned about the asset’s decentralised character, which they fear.
When it comes to dealing with Bitcoin’s danger, she feels that banning proof-of-work mining would almost certainly lead to a collapse of the whole crypto industry.
As a result, Demirors cautioned, the strict requirements might quickly move to the more energy-efficient proof-of-stake.
To me, the most troubling thing about what we’re witnessing throughout the globe is that people are attempting to enforce a de facto ban on bitcoin without saying so explicitly by attacking its proof-of-work model and, in particular, the amount of energy it uses. All of this would be impossible without Bitcoin, both as a source of liquidity and as a sink. That’s why I think it’s ridiculous,” she remarked.
Prior to Bitcoin’s huge price decline, she had issued a warning about the dangers of the crypto market. On May 8, Finbold announced that the price of Bitcoin had fallen below $34,600, an almost 10-month low.
Because Bitcoin has a strong community and decentralisation is the proper thing to do, a strategist was certain that a proposed ban on the currency would not be enacted.
A co-founder of Lightning Labs, Elizabeth Stark, also said that assaults on Bitcoin are due to its decentralised structure during the panel discussion.
Legislators implementing anti-prisoner of war measures
In light of the significant energy consumption of proof-of-work protocols, more governments are considering legislation that would make them illegal. When the New York Assembly enacted a measure delaying certain aspects of the state’s proof-of-work crypto mining industry for two years, it was a case in point.
Before taking any action, the measure mandates that a thorough investigation be conducted. After a setback, the measure was allegedly rejected by the Senate Environmental Conservation Committee at its last meeting of this parliamentary session.
European Securities and Markets Authority (ESMA) was also pressing for an EU ban on cryptocurrency mining, as Finbold revealed earlier this month (PoW). The EU parliament, on the other hand, rejected a ban on PoW techniques.
Despite the fact that Bitcoin is on the verge of widespread acceptance, the digital currency has been slow to catch on due to environmental concerns. A notable transition in the protocol is taking place in Ethereum, the second-ranked digital currency, and there are demands for Bitcoin to follow suit.
As a result, Greenpeace and Chris Larsen, co-founder of Ripple, have launched a lobbying effort to encourage Bitcoin to transition to proof-of-stake.
A large number of activists are attempting to dispel prevalent misconceptions about the energy consumption of Bitcoin. Bitcoin’s environmental effect may not be as severe as previously thought, despite reports to the contrary.
About 25 percent less power was used in 2022 Q1 than at the same time last year, according to a study from the Bitcoin Mining Council. At the same time, Bitcoin’s carbon footprint is being reduced by miners using more and more renewable energy.