Eager to work: Bitcoin switch to proof-of-stake remains unlikely
Bitcoin (BTC), the original cryptocurrency that started it all and even today continues to drive the market sentiments, has faced numerous challenges along the way. The latest challenge seems to be around its mining consensus, proof-of-work (PoW) and its consequent impact on the environment.
Bitcoin network’s high energy consumption was one of the hottest topics last year, with the likes of Elon Musk fueling the sentiment that BTC in its current form is bad for the environment. Luckily enough, the mining companies for some time have been exploring the use of renewable energy, and the latest reports suggest that 58% of the BTC network’s energy comes from renewable sources.
In 2022, the debate seems to have shifted from clean energy usage to a complete change in mining consensus, with a lobby composed of billionaires and proof-of-stake (PoS) proponents calling for a change in the code of Bitcoin. The sentiment is also fueled by Ethereum’s change from PoW to proof-of-stake, slated to be completed by the end of 2022.
PoW is the original crypto mining consensus that was popularized by Bitcoin and adopted by several early crypto projects. PoS came into existence with the launch of Peercoin in 2013, and although not very popular at first, scalability and energy efficiency made it a popular choice for new crypto projects.
William Szamosszegi, CEO of Bitcoin mining platform Sazmining, told Cointelegraph that “the fundamental mistake that Greenpeace, Larsen, and other critics of Bitcoin’s energy consumption make is that they judge Bitcoin by its ‘ingredients,’ rather than its value proposition.” He further added:
Recently, Bitcoin Mining Council (BMC) responded to a letter sent to the United States Environmental Protection Agency
Read more on cointelegraph.com
