The European Union (EU) proposes a Bitcoin trading ban in order to enforce the mining ban they want to implement. The idea here is to target proof of work consensus that is not very environmentally friendly with a high carbon footprint. When the same ban on POWs was proposed last time, it didn’t go through. But the EU has proposed the ban again with the suggestion that BTC trading also is banned to reduce energy consumption.
Why BTC’s POW mechanism is essential?
Bitcoin’s proof of work mechanism might seem to be inferior to the proof of stake mechanism due to the disadvantages. However, POW has a lot of advantages like more decentralization and security. Even though it has a carbon footprint, the community can’t just give up on it. BTC mining is an easy thing for anyone to set up at the lowest costs possible. But for POS, you need a minimum number of tokens to become validators which not everyone can afford.
Some people even think that even with a small user base, BTC uses so much power, then what will happen when more adoption happens. Well, to answer that, BTC doesn’t necessarily need more power for more transactions, and it scales much better as more people are added to the network.
Also check: trading on Margex
Bitcoin ban in EU
While the European Union proposed an outright ban on BTC trading, they also urged the BTC community to move the proof of stake mechanism. Now, this is something that the community will most definitely not accept because of the above-stated reasons. An official said that Ethereum moved to the POS mechanism because of its community. So, we can request the same for Bitcoin as well. He also added that they need to protect the sustainable coins and not the Bitcoin community.
So, we can see that the EU might take a drastic step very soon. But is it something we need to be worried about? I don’t think so. The reason is that the only thing it will do will bring market volatility, and sooner or later EU will reconsider its decision.
What are your thoughts as the EU proposes a Bitcoin trading ban? And do you think the BTC community will ever agree to shift to a POS mechanism? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Coinbase brings rotating rewards with up to 4% cashback on their crypto card.
