What do you think about regulatory risks to Bitcoin? I do see all the benefits of the way it is designed but politicians and regulators have a different axe to grind.
- Proof of stake is/will be seen as climate friendly alternate to POW. US could ban "dirty" BTC mining.
- BTC has a currency element to it, which is/will be seen as a threat to USD. Government will want to issue CBDC at some point and they will not want competition. Fed could also use "monetary policy transmission" argument to ask for a ban on BTC.
China tried mining ban but this is US we are talking about. And where US goes, rest of the western world follows. I know BTC mining stabilizes grid, x% of energy used is clean and all that. But as climate concerns take centre stage, the bar for banning BTC gets lower each day. Finally, US could still encourage crypto while banning BTC. So that it keeps the crypto jobs and stays at the forefront of this new technology without angering climate activists or threatening USD.
PS: I'm sold on BTC but think I need to remember that it is not the best that always wins.