EU Plans A Campaign Against Bitcoin And Protects Ethereum

One of the facts which make Bitcoin unfavorable to the European and the US government is its complete decentralized setup with most minor interference by the current financial regimens consisting of Central Banks and Financial institutions. Internal documents from the European Union suggest that it has started a campaign against Bitcoin instead of protecting altcoins like Ethereum. The reasons are pretty straightforward –Altcoins on Ethereum platforms are easily controlled and forced to change their protocol.

In a virtual meeting held between Swedish and EU officials in November 2021, the plan was discussed to protect crypto coins that are sustainable and are based on the Ethereum blockchain. The meeting details were revealed due to a request for Freedom Of Information by Netzpolitik.org.

Bitcoin Proof-Of-Work Method Is Energy Intensive

One of the reasons against Bitcoin is that it uses the proof-of-work method, which is considered more energy-guzzling than the proof-of-stake way, which is used by Ethereum, which is less energy-consuming.

However, critics are not very impressed and see no merit in this policy adopted by the EU. The real reasons are much too obvious. Bitcoin or other crypto-assets offer an alternative to the current highly flawed financial regimens run by Central Banks, which rely on deficit financing and printing currency without any financial assets. The recent bout of double-digit inflation is one outcome of such deficit financial management.

Cryptocurrency is getting increasingly popular in nations whose local currency has meager value, and the economy is beset with high inflation. Crypto assets are a route by which investors can maintain the value of their savings. Crypto is often seen as inflation-proof and almost equivalent to precious metals.