The European Commission (EC) is under scrutiny from the crypto community for its proposed approach to assess and mitigate the environmental impact of Bitcoin. Daniel Batten, co-founder of CH4 Capital, is expressing worries that the EC’s methodology might pave the way for a mining ban within the EU, impacting the global Bitcoin community. Batten argues that the proposed metrics lack scientific validity and overlook the positive environmental contributions of Bitcoin.
Questionable Methodology for Assessing Bitcoin’s Environmental Impact
According to Batten, the EC’s methodology involves measuring the resource consumption of crypto-assets “per transaction” and relies on reports supported by Central Banks and other entities to evaluate Bitcoin’s environmental impact. Batten contends that this metric was discredited by Cambridge University in 2018, deeming it an “incomplete and subjective” method of evaluating the cryptocurrency’s environmental impact.
Batten suggests that the EC’s motives may extend beyond sustainability to protecting established interests that Bitcoin could disrupt. If the EC’s approach is adopted, Bitcoin might be officially designated as an “environmentally harmful asset.”
Defending Bitcoin’s Environmental Record
To counter the proposed regulations, Batten calls on the crypto community to submit a draft emphasizing the net benefit of Bitcoin to the environment. The submission should advocate for a comprehensive framework that objectively and scientifically evaluates both positive and negative externalities.
Batten encourages using high-quality references and examples illustrating how Bitcoin mining can contribute to the EU’s sustainability goals. He urges supporters to challenge reports, like the one from Greenpeace, which the EU relies on to assess Bitcoin’s environmental impact. Batten advises debunking claims in these reports by providing evidence of falsehood, misleading information, inaccuracies, or outdated information.
Unifying the Crypto Community
Ultimately, Batten emphasizes the need for the crypto community to unite and defend the principles of freedom and decentralization that Bitcoin represents. He encourages individuals to mobilize, spread the message, and channel their time, passion, and knowledge into countering the proposed regulations.
Bitcoin’s Current Status
At the time of writing, the leading cryptocurrency is trading at $41,800, experiencing sideways movement above this level after reaching its yearly peak at $42,400. With a modest 0.8% increase and a notable 12% gain over the past seven days, it remains uncertain whether Bitcoin will consolidate at current levels or undergo correction in the coming days.
