The European Commission (EC) is facing criticism from the crypto community over its proposed methodology to calculate and mitigate the “environmental” impact of Bitcoin.
Daniel Batten, co-founder of CH4 Capital, has expressed concerns that the EC’s approach could lead to an EU mining ban and have far-reaching consequences for the global Bitcoin community. Batten argues that the proposed metrics are “unscientific” and ignore the positive environmental externalities of Bitcoin.
Methodology For Bitcoin Environmental Impact Questioned
According to Daniel Batten, the EC’s proposed methodology includes measuring crypto-assets resource consumption “per transaction” and relying on reports financially backed by Central Banks and other entities to evaluate Bitcoin’s environmental impact.
Batten argues that this metric was previously debunked by Cambridge University in 2018 and is an “incomplete and unobjective” way of assessing the environmental impact of the cryptocurrency.
Batten suggests that the EC’s intentions may not be solely focused on sustainability but rather on protecting “entrenched interests” that Bitcoin could disrupt. Bitcoin could be officially labeled as an “environmentally harmful asset” if the EC’s approach prevails.
Moreover, Batten further criticizes the European Commission for ignoring scientific research and the positive environmental aspects of Bitcoin.
Defending BTC’s Environmental Footprint
To counter the EC’s proposed regulations, Batten calls on the crypto community to submit a draft highlighting the net benefit of Bitcoin to the environment. The submission should emphasize the need for a comprehensive framework that evaluates both positive and negative externalities objectively and scientifically.
Batten encourages the use of high-quality references and examples showcasing how Bitcoin mining can contribute to the EU’s sustainability goals.
Batten urges supporters to challenge reports, such as the one from Greenpeace, which the EU currently relies on for evaluating Bitcoin’s environmental impact. Batten advises debunking claims within these reports by providing evidence that they are false, misleading due to missing context, inaccurate, or no longer applicable.
Ultimately, Batten emphasizes that now is the time for the crypto community to unite and defend the freedom and decentralization that Bitcoin represents. The founder of CH4 Capital further encourages individuals to mobilize, share the message, and channel their “time, passion, and knowledge” into countering the proposed regulations.
At the time of writing, the leading cryptocurrency in the market is trading at $41,800. It has been experiencing a period of sideways price movement above this level, following its peak for the year at $42,400.
As of now, the token has seen a modest 0.8% increase, with a notable 12% gain over the past seven days. It is uncertain whether the current levels will lead to a consolidation or if a correction will occur in the coming days for BTC.
Featured image from Shutterstock, chart from TradingView.com