EU market regulator worries about Proof-of-Work

On the topic of cryptocurrency mining, we have created a large number of articles for you concerning whether positive things are being prepared for the future or bans on cryptocurrency mining by individual states in the world. Recently, however, we have learned that Erik Thedéen, the vice-chair of the European Securities and Markets Authority (ESMA), has expressed concern about the Proof-of-Work (PoW) consensus. The point is that PoW has a really huge amount of energy consumption, and according to him, it would be more appropriate for the European Union to promote Proof-of-Stake (PoS).

The solution is to ban proof-of-work. Proof-of-stake has a significantly lower energy profile.

Many understand this view and share the same view, but Thedéen’s statement seems unnecessarily exaggerated, given the small number of miners in the European Union. However, the idea is still at stake that a mining ban in China (and possibly other countries) could lead to miners migrating to Europe. However, such a scenario currently seems unlikely, as the whole crypto industry tends to be more regulated.