The chief strategist warns governments planning to enforce a ‘de facto’ ban on Bitcoin

The chief strategist warns governments planning to enforce a ‘de facto’ ban on Bitcoin

Meltem Demirors, chief strategic officer at the $ 5 billion crypto asset management company CoinShares, said governments are quietly moving towards a Bitcoin ban by attacking the concept of proving work.

Speaking during a panel at the Crypto Bahamas conference, Demirors said politicians globally want to ban Bitcoin because of energy consumption, but in reality they are threatened by the decentralized nature of assets.

She believes an attack on mining is an almost certain way to tackle the threat posed by Bitcoin, and a successful ban on proving work is likely to result in an overall collapse of the crypto market.

Demirors further warned that strict regulations could easily shift to energy-efficient proof-of-stake despite a focus on proof-of-stake.

What we see around the world, which really worries me, is the use of attacks on proof of work, and especially the use of bitcoin energy, as a way to enforce a de facto ban on bitcoin without pronouncing <…> Without Bitcoin and Bitcoin as the abyss of liquidity and Bitcoin as the ultimate source of liquidity, none of this exists. So I think it’s incredibly short-sighted, “she said.

Bitcoin has fallen below $ 35,000

Its warning came before Bitcoin, and the general cryptocurrency market suffered a huge price correction, trading below $ 35,000. As Finbold reported, on May 8, Bitcoin traded at $ 34,600, which is a nearly 10-month low price level.

However, the strategist exuded the belief that the attempt to ban Bitcoin will not materialize because the property has a strong community and decentralization is the right thing to do.

Speaking during the panel, Elizabeth Stark, co-founder and CEO of Lightning Labs, also reiterated that attacks on Bitcoin are a consequence of its decentralized nature.

Lawmakers pass laws on prisoners of war

The warning comes when multiple jurisdictions are working on laws that are likely to ban proof of work protocols due to high energy consumption. For example, MPs in the New York City Assembly passed a law that would impose a two-year delay on certain areas that affect cryptocurrency mining companies with proof of work in the state.

According to the bill, the authorities must conduct a comprehensive study before moving forward. However, the bill failed because the Senate Environmental Protection Committee reportedly decided not to consider the bill at its last meeting of the current legislative session.

Elsewhere, as Finbold reported, the European Securities and Markets Authority (ESMA) has advocated banning the mining of European Union cryptocurrencies in the European Union for proof-of-labor (PoW) assets. However, the EU parliament voted against banning prisoner mechanisms.

Although Bitcoin is moving towards mass adoption, the assets have been retained due to concerns about energy consumption. Significantly, Ethereum, the second-ranked digital currency, is moving toward a proof-of-stake protocol, and there are calls for Bitcoin to follow suit.

In that sense, the environmental organization Greenpeace, together with Ripple’s co-founder Chris Larsen, presented a lobbying campaign that is pushing Bitcoin to move towards PoS.

Most lobbyists seek to demystify common myths about Bitcoin’s energy consumption. Despite energy concerns, the latest data suggests that Bitcoin’s impact on the environment may not be as damaging as reported.

A report by the Bitcoin Mining Council found that during the first quarter of 2022, electricity consumption in Bitcoin decreased by about 25% compared to the same period a year earlier. At the same time, miners are increasingly using renewable energy to reduce Bitcoin’s carbon footprint.

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