EU’s Latest Crypto Draft Bill Seeks Restriction on Proof-of-Work Based Blockchains

A twitter post from MicroStrategy CEO Michael Saylor has chimed in on the latest version of the EU’s (European Union) crypto law, which seeks to restrict the adoption of proof-of-work (PoW) consensus mechanisms. Saylor echoed many notable players of the bitcoin business who have been vocal against the clause, calling it “a trillion-dollar blunder.”

Last-minute changes to the EU’s regulations on proof-of-work (PoW) crypto were revealed by U.Today, which said that the earlier proposal had been canceled owing to public outrage. Although the terminology has been softened, many have decided that it will have a detrimental effect on the bitcoin business inside the industry.

Parliamentary deliberations have been ongoing for months. Proof-of-stake (PoS) and other consensus algorithms, which are known for their environmental friendliness, stand to benefit the most from a prohibition. Although the SEC must treat all non-energy-based cryptos as unregulated securities, according to Saylor, this isn’t a given.

At the time of this writing, MicroStrategy has around 125,051 Bitcoins valued almost $4.8 billion. The Tysons, Virginia-headquartered business is by far the largest corporate holder of the numero uno crypto. When Saylor made a new remark about Bitcoin functioning as digital asset, gold advocate Peter Schiff took note.His more extreme viewpoint maintains that Bitcoin has no worth since it doesn’t create any “real value.”

In order to validate his claim, Schiff said, “I must be able to show that I dug a hole and then filled it back in, the work generated nothing.” He went on to say, “Bitcoin, on the other hand, consumes a lot of power.” Schiff reaffirmed that the leading cryptocurrency is merely aimed to entice new purchasers so that earlier investors may sell it at a better price. Schiff reaffirmed. Bitcoin has been consistently referred to by the permabear as being a pyramid scam, according to a report by U.Today.