A new European Central Bank report has questioned whether climate risk is priced into crypto assets such as Bitcoin.
ECB Condemns Proof-of-Work Blockchains
The European Central Bank is bearish on Bitcoin.
A new ECB research article assessing the climate risks associated with crypto assets has come down hard on blockchains that use Proof-of-Work consensus algorithms—primarily Bitcoin. Published Jul. 12, the report compares energy-intensive Proof-of-Work algorithms to fossil fuel cars while likening Proof-of-Stake, which uses an estimated 99% less energy than Proof-of-Work, to electric vehicles.
“Public authorities have the choice of incentivising the crypto version of the electric vehicle (Proof-of-Stake and its various blockchain consensus mechanisms) or to restrict or ban the crypto version of the fossil fuel car (Proof-of-Work blockchain consensus mechanisms),” the article states.
To highlight concerns over Proof-of-Work energy consumption, the report also references previous data...
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