News equipment Bitcoin: the real crypto winter is coming and prices will continue to fall. We explain why
While Bitcoin has faced a decline in value since the beginning of the year, the cryptocurrency may not be at the end of its surprises… Like China or the United States, the European Union may take very restrictive measures regarding mining crypts.
Bitcoin miners in European Member States will have to shut down their machines this winter
For some time, Bitcoin has faced a lot of criticism pointing to the energy-consuming and polluting aspect of its network.
Indeed, the Bitcoin blockchain consumes a copious amount of electricity through its proof-of-work (PoW) authentication system. This operation takes advantage of the computing power of graphics cards and other ASICs to secure the network. Although it uses more and more renewable energy, Bitcoin always consumes more electricity as the difficulty of mining increases – as a result, it requires more and more powerful equipment to mine.
Thus, in a context of energy shortages after the conflict in Ukraine, among others, crypto miners are the first targets of European leaders facing winter.
On October 18, the European Commission published a document on the energy ambitions of various member states. In the form of questions and answers, the action plan clearly mentions the restriction of proof-of-work cryptocurrencies, of which Bitcoin is a part.
“Given the current energy crisis and the growing risks for the coming winter, the Commission urges Member States to implement targeted and ambitious measures to reduce the electricity consumption of crypto players. (…) If it is necessary to carry out load reduction in electricity systems, Member States should also be ready to ban (such as) mining of crypto-assets. (…)”
These future restrictions could have serious consequences for cryptocurrencies…
“Winter is coming”, hard times for Bitcoin
As we talk about the crypto winter since the Bitcoin price crash, it may be that the term takes on its full meaning.
Indeed, if Bitcoin mining is banned in Europe this winter, then this could have significant consequences for the price of the crypto. Currently around €19,000, Bitcoin is struggling to grow and this kind of news is not reassuring for investors.
Thus, if action is taken, Bitcoin may begin a final phase of decline, bringing it back to a price visited several years ago.
However, for now, this document remains a finding and no restrictions on Bitcoin miners have been taken. It is important to remember that the energy situation is not just about European miners. Indeed, with the greening of some sectors, some states are questioning the impact of Bitcoin. For example, the White House recently published a report in which a group of experts examines the ban on Bitcoin mining in the United States.
Despite these threats to the Bitcoin network, many users believe that the Bitcoin ban is a mirage – as in China, mining has been banned since 2021, but the country remains, at the moment, the second largest miner in the world. bitcoins.