Bitcoin Is In The Crosshairs Of The EU With The Energy Labeling Plan

Bitcoin, as well as all other virtual currencies based on the Proof-of-Work (PoW) technique, are now in the sights of the European Commission. This institution is currently preparing an energy labeling plan for crypto-currencies that could well upset the entire crypto-mining industry.

The EU energy labeling scheme

The European Commission is preparing a vast energy labeling plan for cryptocurrencies. In particular, it is a question of integrating an energy efficiency label in order to evaluate each cryptocurrency from an environmental perspective. The European Commission's classification of virtual currencies will be established in collaboration with international partners.

“It is imperative to ensure that the most energy-efficient blockchain technologies are used to reduce their environmental impact,” said a member of the European Commission, according to a source close to the Bloomberg news agency.

The objective: To reduce energy consumption.

The objective of this plan is to limit the energy consumption of all crypto-currencies by promoting the adoption of currencies that are more virtuous in terms of the environment. Due to problems bringing Russian gas to Europe, the European institution is urging member countries to target mining activity to reduce the energy consumption of crypto miners this winter.

At first glance, this is a good initiative to push other first-generation virtual currencies to take the plunge. Since its migration to the Proof-of-Stake model, Ethereum has indeed reduced its energy consumption by 99.9%. But one can nevertheless wonder if the European institution will not take advantage of this new action plan to impose more freedom-killing measures.

More freedom-killing measures on the rails?!

The European institution also begins by advocating to purely and simply prohibit the use of virtual currencies of the PoW model, or even to push virtual currency organizations to disclose energy consumption.

A report on the mining industry's climate impact by 2025 is also on the cards. The European Commission is also calling on EU member countries to end tax exemption programs for crypto miners.

Bitcoin in the sights of the European Commission!

Bitcoin is of course in the crosshairs of this energy labeling plan. Remember that this virtual currency still represents 39.90% of the total sum of the market capitalizations of cryptos. The tool set up by the University of Cambridge even estimates that Satoshi Nakamoto's virtual currency consumed 102.11 TWh over one year (more than three times the annual energy consumption of the city of Paris!). A report by investment firm Coinshares considers Bitcoin to be responsible for 0.08% of CO2 emissions worldwide.

Green cryptos are attracting more and more traders and investors

This new regulation of the cryptocurrency sector does not seem to have a noticeable impact on green cryptos in the short term. Cardano (ADA), one of the main virtual currencies using Proof-of-Stake (PoS), even falls by 3.89% in the last 24 hours, while Hedera Hashgraph (HBAR) sinks into the red at -5.40%.

Mining activity is complicated for European institutions to control anyway and EU miners represent only 10% of the total mining activity of proof-of-work cryptos.

Green cryptos are attracting more and more investors. These virtual currencies operate from a technical model that consumes less energy: Proof-of-Stake (PoS).

IMPT.io seduces investors with its ICO

IMPT.io is the perfect example! The first phase of the ICO of this virtual currency is a real success at the moment, with more than 5.8 million dollars already subscribed (more than 50% of the tokens put up for sale). Each token is offered for sale at a price of $0.018. The first phase of the ICO started on October 3 and the finalization of this phase was scheduled for November 25, but given the enthusiasm of investors for this crypto, it is very likely that the first phase will end well before this date.

A Tweet dated October 10, 2022 already mentioned the success of the ongoing ICO:

It must be admitted that this green crypto has everything to succeed. Its economic model is already based on a very innovative concept: carbon credits. Many companies and individuals want to offset their CO2 emissions by buying carbon credits and converting these carbon credits into environmental actions.

IMPT.io provides a technical solution to this problem. By subscribing to IMPT tokens, the investor can then convert these tokens into carbon credits and environmental actions.