MicroStrategy CEO Michael Saylor stated that the banning of Bitcoin would be a ‘trillionare dollar’ mistake. This was in response to The European Union who is preparing to vote on a Markets in Crypto Assets (MiCA) framework that could result in heavy restrictions on Proof-of-Work mining.
Some regulatory bodies worldwide are becoming more oppressive and hostile towards Bitcoin and digital assets. Many people are growing concerned about the excessive energy demands of proof-of-work Bitcoin mining.
The only settled method to create digital property is via Proof-of-Work. Non-energy based crypto approaches like Proof-of-Stake must be deemed to be securities until proven otherwise. Banning digital property would be a trillion dollar mistake.https://t.co/h8FTGaGJKi
— Michael Saylor⚡️ (@saylor) March 12, 2022
According to the draft law, 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.” On March 13, Bloomberg reported that new law could be a ban of Bitcoin and Ethereum (still PoW) in the EU.
On Sunday, Saylor tweeted that proof-of-stake assets will be deemed securities which is why proof-of-work is still highly relevant and needed:
“The only settled method to create digital property is via Proof-of-Work. Non-energy based crypto approaches like Proof-of-Stake must be deemed to be securities until proven otherwise. Banning digital property would be a trillion dollar mistake.”
Saylor, added that Bitcoin is digital property and the “most cost-efficient method we have yet discovered for converting energy into prosperity.”
Europe comprises around 12-14% of the total BTC mining hash power according to August 2021 figures from Cambridge University. Ireland and Germany have the lion’s share of that total so global hash rates are unlikely to be impacted.
What could happen is a wider ban or heavy-handed regulation, which could harm the markets and the industry. Mining operations have already seen major migration from China to North America in recent years and there could be more to come.
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