Energy austerity in Europe?
Energy commissioner Kadri Simson said the goal is to “make our energy system more efficient and ready for increasing share of renewable energy sources. For this, we need more innovative digital solutions and a grid that is much smarter and more interactive than it is today.“
The measures will purportedly support digital tech. in the energy sector via public sector-led programs. The crypto sector was not specifically mentioned, but the EU has taken a fairly abrasive stance against proof-of-work mining, despite the lacklustre evidence to support supposed environmental concerns.
Per statements from EC President Ursula von der Leyen, the European Commission plans to include energy rationing, price fixing and nationalize energy suppliers and producers rather than address core energy supply and demand issues.
The @EU_Commission proposal will aim to:
• Reduce electricity demand (peaks)
• Price cap on 🇷🇺 pipeline gas
• Help vulnerable consumers & businesses with revenue from the energy sector
• Enable support to electricity producers facing liquidity challenges linked to volatility
— Ursula von der Leyen (@vonderleyen) September 5, 2022
Questionable energy policy
Last week, JPM CEO Jamie Dimon broke his silence on politically-motivated ESG investments, telling clients that “some investors don’t give a s–t” about “ESG,” the woke investing approach that US companies have increasingly embraced under political pressure. The CEO spoke in the context of conventional forms of energy, which are crucial to maintaining financial stability and independence; a thing which Europe has forfeited through short-sighted and ill-conceived green energy policies.
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A rounding error
The world uses over 170,000 TWh of energy per year. This means that at its peak, the entire Bitcoin network is estimated to use less than 0.1% of the world’s energy consumption. That’s for a network with over 100 million users.
In other words, Bitcoin’s energy usage is a rounding error in regards to global energy usage.
It goes without saying that Europe’s tenuous stance on proof-of-work mining could leave the continent exposed to losing investment and innovation opportunities in both the energy and cryptocurrency sectors to other accommodating jurisdictions like the United States.
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