Bobos & Wojaks

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Banning Bitcoin Would Be A Trillion-Dollar Mistake Says Michael Saylor On The EU’s MiCA

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Several regulatory authorities around the world are growing increasingly authoritarian and unfriendly to Bitcoin and digital assets. This has been compounded by Russia’s invasion of Ukraine, as officials incorrectly believe the former will suddenly switch to cryptocurrency use.

Other watchdogs are becoming increasingly concerned about the exorbitant energy requirements of proof-of-work Bitcoin mining.

The European Union is poised to vote today on a framework for Markets in Crypto Assets (MiCA), which might result in severe limits on PoW mining.

The draft law states that crypto-assets traded in Europe “shall be subject to minimum environmental sustainability standards and set up and maintain a phased rollout plan to ensure compliance.” Bloomberg reported on March 13 that the new law could be a de facto ban of Bitcoin and Ethereum (still PoW) in the EU.

Saylor tweeted on Sunday that proof-of-stake assets will be considered securities, which is why proof-of-work remains relevant and necessary:

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Saylor, who supports sensible laws, went on to say that Bitcoin is the digital property and the “most cost-effective mechanism we have yet discovered for transforming energy into prosperity.” With 125,051 BTC coins valued at roughly $4.8 billion at current prices, MicroStrategy is the highest corporate BTC holder.

According to Cambridge University data from August 2021, Europe accounts for roughly 12-14 percent of overall BTC mining hash power. Because Ireland and Germany account for the majority of that sum, global hash rates are unlikely to be affected.

Europe accounts for around 12-14 percent of overall BTC mining hash power, according to Cambridge University data from August 2021. Global hash rates are unlikely to be affected because Ireland and Germany account for the majority of that sum.