Small Investors Can Now Own 1 Full BTC

Small Investors Can Now Own 1 Full BTC

Small-time investors have the opportunity to realize their dreams of owning at minimum 1 Bitcoin, with BTC trading in the $20,000 area for the first time since 2020.

Bitcoin trading in the $20k range

Investors around the world have been chasing one of the total 21 million BTC since the early days of Bitcoin (BTC). This massive hysteria has been caused by the phenomenal interest in the cryptocurrency and the widespread acceptance of the internet in the last few years.

After hitting another all-time high in November 2021, when bitcoin’s price reached almost $69,000, the leading cryptocurrency has been declining in value ever since. In May 2022, the bear market has been confirmed, and it involves not only the cryptocurrency market, but the most important financial markets. The crypto market is now more tied to the stock market than ever, as more institutional investors have joined in 2021. 

While many online celebrities have been raising concerns and painting a gloomy future for bitcoin, some see it as an opportunity to become a bitcoin owner. 

BTC trading in the $20,000 area for the first time since 2020 gives small-time investors the opportunity to realize their goal of owning a minimum of 1 BTC. According to Glassnode, there has been a significant increase in the total number of Bitcoin addresses containing 1 BTC or more. These have increased by over 13,000 in June. 

Small Investors Can Now Own 1 Full BTC

The total number of addresses that hold 1 BTC has seen an immediate decrease in the days ahead, but the Reddit crypto community continues to welcome new crypto investors who have worked hard to become wholecoiners.

New investors become wholecoiners

Some Reddit users even share their stories about how they saved enough to accumulate 1BTC and share screenshots of their achievements. 

This Reddit user, arbalest_22 said that he spent approximately $35,000 to accumulate 1 BTC. He continues to support the Bitcoin ecosystem by pledging to procure Satoshis and sats until his total of 2 BTC. The ultimate goal of this user, and those who contributed to the discussion is to have tax-free income. 

Other users say that they were able to become wholesalers by using the dollar-cost-average strategy. This dollar-cost-averaging (DCA) requires investors to regularly buy smaller amounts of BTC over a longer time.

According to Glassnode data, the total number of Bitcoin wallet addresses that hold more than 1 BTC increased is around 800,000.

Although falling BTC prices can be seen as an opportunity for investment, Google search trends highlight the tendency of other investors to speculate about its future.

Is it time to buy the Bitcoin dip?

After weeks of unrelenting selloffs, the Google search results show that cryptocurrency markets are experiencing peak anxiety.

After the comments of the United States Federal Reserve on the inflation outlook, nerves were high in crypto markets. The sell-off began at the beginning of June 2022. 

Bitcoin lost the $20,000 psychologically significant mark. It also crosses another negative milestone, as it kept falling below the previous halving cycle’s highest for the first time ever in its history.

BTC/USD suffered 37% losses in the first two weeks, making June 2022 the worst month for Bitcoin.

The pair has traded almost 60% lower year-to-date. This is 70% less than the record high of $69,000 set in November last year.

According to cryptocurrency analysts, Bitcoin needs a higher volume and volatility to match volume levels from previous bear market bottoms, at the 200 MA (200-week moving average), a key lifelong support line.

The US stock market seems to recover and the S&P had its second-best week of 2022, which indicates a modest relief across risk assets. Everyone is looking at Bitcoin’s 200-week MA, which is the major indicator that gives the average price of Bitcoin over the last 200 weeks, hoping to surpass this support lever soon. 

How Terra’s Implosion Affected the Entire Cryptosphere

How Terra’s Implosion Affected the Entire Cryptosphere

What happened after the Terra LUNA implosion?

Terra’s dramatic fall began on May 7th, 2022, when UST, Terra’s stablecoin lost its peg to the USD dollar. Stablecoins are designed to keep a steady value, and investors will always get alarmed if the value of a stablecoin goes off track. In the case of Terra’s UST stablecoin, the value dropped to $0.35 by May 9th, which cause the entire ecosystem to collapse in a matter of hours. It was only downhill from there, with some occasional small price spikes, whenever the official Terra Twitter account or its founder tweeted something new. 

What caused the Terra LUNA implosion and the subsequent death spiral?

It’s important to note that UST is an algorithmic stablecoin. This means that the asset isn’t collateralized by the same value of fiat in some bank account, or by any other crypto, such as BTC or ETH. An algorithmic stablecoin is a digital asset that is designed to preserve a certain value at all times, by incentivizing users to sell it or buy it, when its price fluctuates. 

At the same time, the stablecoin is a rebase token and the algorithm needs time to adjust its total supply, based on the action of the users. In the case of the Terra blockchain, the stablecoin (UST) was adjusting its price by using another asset, LUNA, the native coin of the Terra blockchain. When the price of UST began to wobble, there was huge pressure on the blockchain, as users started to take advantage of the design of the blockchain – the very system that was supposed to keep it afloat. 

Simply put, Terra would always allow users to trade 1 UST for $1 of Terra and vice-versa. The massive selling of UST for Terra caused unprecedented inflation on the Terra blockchain. The total Terra supply raised from 350 million Terra to over 6.5 billion in a matter of hours. During this death spiral of Terra LUNA, investors saw their life-saving shrinking to pennies in a blink of an eye. There were reported cases of suicide. This is a lesson to be remembered and a sign that the world is not yet ready for these imperfect algorithmic stablecoins. 

According to the on-chain analytics firm Nansen report, the reason the UST stablecoin de-pegged was a number of entities that reduced their UST allocations:

“We refute the popular narrative of one ‘attacker’ or ‘hacker’ working to destabilize UST. The de-peg of UST could instead have resulted from the investment decisions of several well-funded entities, e.g., to abide by risk management constraints or alternative to reduce UST allocations deposited into [lending protocol] Anchor in the context of turbulent macroeconomic and market conditions.”

The Terra implosion in numbers

At the beginning of 2022, Terra’s LUNA token had a market cap of $31 billion. Its stablecoin, UST, had a market cap of $10 billion. On April 5th, 2022, the old Terra LUNA, now called Terra Classic (LUNC), reached its all-time high at $119.18

Now, both have a virtual value of $0.

Shortly after the fall of the entire ecosystem, the damages of the Terra implosion were estimated at around $40 billion. According to LFG (Luna Foundation Guard), the network had vast reserves of over-2 billion dollars worth of bitcoin, but not even selling that was able to save all those UST and Terra investors. 

UST has remained de-pegged from the US dollar since 9th May 2022 and it was trading at $0.015 at the end of May 2022. 

According to DeFi Llama, the TVL (Total Value Locked) on the Terra network dropped from $29 billion at the beginning of May, to $15 billion at the beginning of June. 

How Terra’s Implosion Affected the Entire Cryptosphere

The Terra blockchain revival plan

The largest token collapse in crypto history could not simply let investors without hope. After Terra’s UST collapse, LUNA’s value was going lower by the hour. At some point, on May 12th, Terra validators halted block production to implement a new blockchain update that would prevent new actors staking on the Terra blockchain. 

Everyone was waiting for an update from Do Kwon, the blockchain’s founder, as the market was hitting lower values each hour. As of June 2022, his Twitter account has turned private. 

Terra LUNA imposion How Terra’s Implosion Affected the Entire Cryptosphere

On May 16th, Do Kwon, Terra’s founder proposed several versions of a revival plan, and the original plans included handing over the ownership of Terra to its community.  

The revival plan that passed the governance vote with a 65% approval rate introduces the Terra 2.0 blockchain, which is a hard fork from the original blockchain. The new Terra blockchain will hold onto its name, while the old blockchain will be renamed Terra Classic and its coins will be called LUNA Classic (LUNC) and UST Classic (USTC). 

The plan was to take a snapshot of the Terra blockchain and airdrop to Terra’s LUNA holders the new coin, which will also use the name LUNA. The snapshot took place on May 26th, 2022. 

The plan specifies that smaller holders would get their tokens much faster, than large holders who would have the power to destabilize the market if they would get the new coin and sell it from the start. 

To prevent immediate selling of the new LUNA coin and entering a new death spiral, investors who held over 10,000 LUNA before the collapse of the ecosystem, will receive the new coins over a vesting period. Initially, 30% of their tokens will be unlocked, and the remaining coins will be unlocked over the next two years. 

Moreover, crypto wallets that hold more than 1 million LUNA or UST prior to UST’s de-pegging from the U.S. dollar would have to wait more than a year before receiving any of the new tokens, with a four-year vesting period. 

Terra 2.0: the launch of a new blockchain 

On May 28th, 2022, Terra 2.0 was launched. The new blockchain is a hard fork from the now-called Terra Classic blockchain. All those who held Terra at the moment of the snapshot received the new LUNA token via airdrop.  

While some investors already received a part of their new tokens, other larger wallets will have to wait. 

As the new LUNA coin launched, its price saw huge volatility on exchanges. LUNA’s price reached $19.54 on the day of its launch but has been falling ever since. 

The crypto market is now in a bearish trend. Some argue that the recent Terra LUNA implosion (Terra Classic) and its algorithmic stablecoin have made investors lose confidence in cryptocurrencies and in stablecoins. 

The Digital Euro Could Be Launched by 2026

The Digital Euro Could Be Launched by 2026

According to Fabio Panetta, a senior official at the European Central Bank (ECB), a digital euro could be issued within the next four years by the European Union (EU). A potential first use would be peer-to-peer payments.

Due to concerns about Russia’s war against Ukraine and the rise of private stablecoins such as Facebook’s now-abandoned Libra, the timeline for the central bank digital currency (CBDC), has been moved back and forth.

What would the digital Euro be used for?

At an event at the National College of Ireland, Fabio Panetta, an executive board member of the European Central Bank, or ECB, has said: “The idea would be that let’s say, four years from now, we will be ideally ready to issue the digital euro,” and also expressed his optimism that the CBDC could be launched within the next four years, although it will be a complicated process that hasn’t been done before. 

Panetta suggested that a peer-to-peer (P2P) payment solution, which allows transactions between friends, could be the first test ground for the new technology before it spreads to other areas such as online payments or business payments such as physical and online shops.

He said that a P2P payment system that covers large numbers of users in the whole euro area could be a fertile ground for the adoption of a digital currency. Research has shown that the application would have the greatest impact on early adoption.

The ECB began a two-year investigation phase in October to examine issues such as which use cases should be prioritized. However, the ECB is still not sure if it will issue a digital currency. Panetta previously stated that the realization stage, which is due to begin late next year, could last for three years.

Christine Lagarde, President of the ECB, stated in March that the sanctions imposed by the war in Ukraine were a reason to accelerate the plans. However, other EU officials Monday suggested that they are letting their feet off the pedal.

We also have to note that Jurgen Schaaf, an ECB advisor, stated that the EU’s research and experiments on a digital euro are not a guarantee that they will launch a CBDC.

Why is the EU researching a CBDC?

After an industry consortium led Facebook suggested its own cryptocurrency, Libra, the idea of the EU issuing its very own CBDC was born. The Libra project was later renamed Diem and abandoned.

Mairead McGuinness (EU’s financial-services Commissioner) said that there was a feeling of urgency back some time ago, due to the fears of what might happen with private providers. McGuinness said that they will not hurry the research process. They want to move fairly quickly, but  “not hastily.”

Panetta stated that recent declines in the crypto market private may be another reason to continue the project.

Stablecoins lack the regulatory safety net that banks have and are, therefore “vulnerable to runs”, he stated. He cited the crash of TerraUSD (UST) from May 9th-13th. The supposedly stablecoin was issued and backed up by the Luna Foundation Guard.

Another example of an unregulated stablecoin is Tether (USDT), which also lost its peg to the USD dollar during the same week. Luckily, the USDT quickly recovered. 

Another reason for EU’s urge to research and regulate cryptocurrency is the war between Russia and Ukraine. Following the invasion of Ukraine, the EU and U.S. implemented severe sanctions against Russia. However, there are many concerns over the role of crypto in evading sanctions. This has prompted regulators around the world to accelerate their efforts to regulate the sector.

At the same time, U.S. President Joe Biden issued an executive order regarding crypto Wednesday encouraging federal agencies to adopt a common approach when regulating the sector. He asked the government to evaluate the benefits and risks of creating a digital currency.

UST Stablecoin Loses Dollar Peg But Terra Strives to Bring It Back Up

UST Stablecoin Loses Dollar Peg But Terra Strives to Bring It Back Up

According to the latest price estimates from CoinMarketCap, Terra’s stablecoin, UST has lost its USD peg as it fell to $0.36 on Wednesday, May 11th.

According to CoinMarketCap, the price of UST’s sister token, LUNA, has fallen over 96% to $1.17, following UST’s dramatic price drop. The online community is referring to this event as the #LunaCrash.

What is UST?

UST is a so-called algorithmic stablecoin. It works with LUNA in order to maintain a price at $1 by using a series of on-chain minting and burn mechanics. These mechanics are supposed to allow traders to swap $1 worth UST for $1 worth of LUNA. Luna has a floating price, and serves as a shock absorber to UST’s price.

Luna’s market cap falls below that of UST due to its price drop, reaching $763 million compared to $5.43 billion market cap of TerraUSD (UST). This could put at risk the entire stabilizing mechanism of UST. It means that Terra bank runs could result in some users not being able to redeem $1 of UST for $1 LUNA.

This is not the first time that the UST has been “de-pegged” from the $1 value that a stablecoin should have at all times. 

When a stablecoin isn’t stable anymore

The UST de-pegged that started at the beginning of May 2022 has urged the Luna Foundation to find a solution to this crisis and help the UST bounce back to its normal value. Luna Foundation Guard (LFG) announced on Sunday night that $1.5 Billion of its huge Bitcoin (BTC) reserves would be “loaned out” to professional market makers in order to proactively protect UST’s dollar peg.

However, the market cap of UST did not recover. 

Terra seemed to have emptied all funds (approximately $1.3 billion) from its verified bitcoin address.

Do Kwon, Terraform Labs’ CEO, posted a few minutes later on Twitter: “Deploying more capital — steady lads!”

According to reports, professional market makers use the BTC reserves to protect UST’s dollar peg in protocols such as Curve. Curve allows users to swap between UST (and other currencies) like the USDC and Tether stablecoins.

There is currently no link between Terra’s LFG reserves and Terra’s on-chain mint and burn mechanism. Although there are plans to bake Terra’s bitcoin reserve into its underlying smart contract, users currently have no option to redeem UST and LUNA for bitcoin.

This is a question that will remain unanswered, as the reserves appear to have been almost completely drained.

Terraform Labs CEO works to help UST regain its peg to the US dollar

Do Kwon, founder of Terraform Labs, said that the company supports a community proposal to help TerraUSD (UST), a stablecoin pegged with the U.S. Dollar, regain its peg.

Algorithmic stablecoins such as UST are backed with a range of assets like Terra’s LUNA and bitcoin (BTC). One UST can be redeemed for $1 worth of LUNA, so it is easy to keep its value.

However, UST lost the peg and dropped to $0.66 Monday, but it didn’t stop there. Although it recovered it’s value on Tuesday, when it reached $0.90, before falling to $0.35 during Asian hours on Wednesday. LUNA also dropped sharply.

Kwon, who has been unusually silent on Twitter over the last few days, said there was a plan for UST to be brought back to its original position.

Kwon explained how UST works in a tweet: “The price stabilization mechanism is absorbing UST supply (over 10% of total supply), but the cost of absorbing so much stablecoins at the same time has stretched out the on-chain swap spread to 40%, and Luna price has diminished dramatically absorbing the arbs.”

You can find the entire Twitter thread that Kwon wrote here.

Arbs is a term that refers to crypto arbitrage.

To try to bring UST’s peg down to $1, additional LUNA will be minted and would be sold on the market. This is in addition to a separate proposal that aims to offer a lower yield to users of Anchor.

The proposal states: “By allowing more efficient UST burn and LUNA mining, [which] will in short term put pressure on LUNA prices, but will also be an effective method to bring UST back to its $1 pegged-value, which will eventually stabilize LUNA prices.”

The story is still developing. Check the price of UST on Coinmarketcap

Cryptocurrency and NGOs: Younger Crowds Are Now Interested in Charity

Cryptocurrency and NGOs: Younger Crowds Are Now Interested in Charity

Cryptocurrency donations are elevating philanthropy and come from different types of demographics. When it comes to digital currency and charity, there are many differences that arise from traditional donations. 

This method of giving is likely to be a long-lasting one in the nonprofit sector, and possibly transform philanthropy. Although the availability of cryptocurrency for charitable giving has already prompted new waves of young people to consider philanthropy, it may not be enough. While smaller charities have been able to compete for donations due to crypto’s accessibility, these are only the first steps. This is another hint that digital assets may soon become more deeply embedded in our daily lives.

Crypto donations are gaining popularity

As of the moment of writing, 2021 was the year of the largest crypto donations. 

Fidelity Charitable is a nonprofit that advises donors about charitable giving. In 2020, approximately 45% of crypto investors gave to charities, while only about 33% of all general investors donated. In 2021, Fidelity Charitable has received $331 million in cryptocurrency donations, compared to $28 million in 2020. The Giving Block, a cryptocurrency donation platform reported that $69 million was the total amount of donations received in 2021. This is a huge 1,558% increase compared to 2020.

When making crypto donations, transfers can be easily performed from any country around the globe, which allows charities to have donors worldwide. Many international charities have begun accepting cryptocurrency donations:

Crypto donations can help when NGOs are unable to obtain funding through other mediums. A famous example is WikiLeaks, which is banned from receiving funding through Visa, Mastercard, and PayPal. WikiLeaks now receives millions in crypto donations. Despite the unprecedented growth, cryptocurrency charity is still a new way of giving that differs from the traditional charity methods. 

One of the main difference between traditional donations and crypto donations are the donors. On average, cryptocurrency users are younger than traditional donors to philanthropy. More than 60% of cryptocurrency users are younger than 40. The average age for crypto users in the United States is 38, while the average age for donors is 64.

United Way, an international charity, began accepting cryptocurrency in 2014. According to their analytics, the average user is between 45 and 65 years old and 80% of users are female. At the same time, the average age of donators of United Way is between 25 and 35 years, and 80% are men. This is a clear sign that the rise of cryptocurrency is attracting younger people to philanthropy.

What are the causes of this demographic shift? The answer is more complex and consists of:

  • Causes published on social media
  • Crypto transactions have low fees
  • Tax deductions
  • Crypto donations are anonymous 

Social and humanitarian causes published on social media

Many cryptocurrency donations are made by tech-savvy young adults who want to support causes that receive more attention online. These donors might read touching stories and feel connected to specific events. Stories shared via Twitter about the Russia-Ukraine conflict have resulted in around $100 million in crypto donations for Ukraine.

Similar to the first wave of the pandemic in India, social media was a COVID-19 helpline that had global reach and helped with crypto donations. Vitalik Buterin (Ethereum founder) donated $1 billion to India’s COVID-19 relief program in Shiba Inu tokens. These tokens soared in price around the same period. He also donated about $5 million in ETH for Ukraine

The Tor Project, a well-known non-profit dedicated to internet freedom and privacy, received 58% in cryptocurrency donations in 2021. This was due to crypto donors’ greater affinity for data privacy causes than other causes.

Because crypto donors might be confused about which cause or non-profit they should support, The Giving Bock recently introduced cause funds and impact index funds. These funds will assist donors in making informed decisions and could open up opportunities for them that they may not have otherwise considered.

The crypto donation platform allows you to fund causes that cover education, disaster relief, food, and the environment. Donors have the option to support a specific cause, rather than picking a non-profit organization. All non-profits receive an equal amount of the donation amount. This arrangement gives smaller non-profits an equal footing and ensures that the larger cause receives greater attention than bigger, more well-known non-profits.

Crypto transactions have lower transaction costs

For many reasons, donors may find crypto donations more attractive. Donations can be used to avoid capital gains taxes for crypto investors. There are also potential savings for donors as well as non-profits from transaction fees that traditional financial platforms require.

Crypto donations have lower transaction costs than credit and debit cards. Since most traditional donations happen online via a credit card, the processing fees vary between 2% to 7%. This fee is much lower for crypto donations. 

A $2,000 wire transfer from the U.S. may add between $30 to $50 in transaction fees. Transferring the same amount via the Ethereum blockchain can cost around $15-20 in gas fees. But there are many other blockchains that charge much lower fees. The transaction time in crypto is also considerably less, while international bank transfers can take up to a few days. 

Tax deduction for crypto donations

Another reason for making crypto donations is to reduce taxes. Tax-deductible crypto donations to NGOs are possible in the U.S., Canada, Australia, as well as New Zealand. 

An investor can deduct the current fair market value of the crypto when he or she donates it directly. If the value of the crypto assets has appreciated over time, you can now deduct the value of the current price from your taxes, although you may have invested far less. If, however, you want to convert crypto to fiat first, you may have to pay capital gains taxes. These taxes can be as high as 20-30%. 

Crypto helps to protect anonymity

It is easier for nonprofits to identify existing donors than it is to find new donors. Donors often prefer anonymity as they feel the pressure to give more. Donating large amounts may also require you to complete a KYC (know your customer) process.

Crypto donations help donors maintain their anonymity while they give millions of dollars. However, this anonymity offered by crypto may not last as many countries raise crypto regulations.

More than 1,300 charities accepted cryptocurrency donations in 2021. By allowing direct crypto donations, more young people are inspired to give. This shift will encourage smaller organizations to adopt crypto donations as well, and potentially disrupt the model of traditional donations. 

Bitcoin Ban Averted: Proof-Of-Work Crypto Ban Is Rejected by the EU

Bitcoin Ban Averted: Proof-Of-Work Crypto Ban Is Rejected by the EU

On March 14, the European Parliament discussed the effects and carbon footprint of Proof-of-Work cryptocurrencies. The EU Bitcoin ban was not passed, but the energy discussion has not ended.  

​​A rule proposal that would have effectively banned Bitcoin in the European Union (EU) has been struck down.

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) voted to keep the provision out of a draft Markets In Crypto Assets (MiCA) framework. This is the EU’s comprehensive regulatory package that governs digital assets. 

EU’s response to crypto companies: MiCA

The MiCA framework was introduced by the European Commission in September 2020, as the EU executive branch responsible for proposing and enforcing laws. It is part of a larger digital finance strategy to adapt Europe to the digital age. It’s also quite different from other regulatory efforts.

For instance, the U.S. has introduced many bills over the years that directly impact the crypto space. These include tax and securities laws, but different states may have their own regulatory requirements. The country does not have a comprehensive equivalent to the EU’s MiCA. In August, the country’s most comprehensive bill regarding crypto regulation was presented. China had already banned crypto trading and mining in 2021. However, it was still working on its own digital currency, the digital yuan.

MiCA covers cryptocurrencies such as Bitcoin and Ether, as well as stablecoins. The proposed framework does not cover digital currencies issued by central banks (CBDCs), nor crypto assets like security tokens, which might be considered financial instruments such as securities, deposits or treasury bills.

Although the promise of a passportable license to crypto asset service providers sounds appealing for established crypto firms that want to establish in the region, industry participants are concerned about the impact MiCA may have on the EU’s digital asset market.

EU’s Parliament voted on the crypto proposal

This Bitcoin ban proposal was added to the draft last Wednesday. It sought to limit cryptocurrencies powered using an energy-intensive computing process called proof-of-work (PoW). The proposal was met with heavy opposition by crypto advocates around the world. 

After the Bitcoin ban was opposed by the committee, Stefan Berger, member of the EU Parliament, and rapporteur for MiCA, tweeted: “ECON committee approved my #MiCA report. A good day for the crypto sector! The EU Parliament has paved the way for innovation-friendly crypto regulation that can set standards worldwide. The process is not over yet; Steps still lie ahead of us.”

The vote on the provision, commonly known as the Bitcoin ban, was close, and a small majority could defeat it. The proposal required that all cryptocurrencies be subject to the EU’s “minimum environmental sustainability standard with respect to their consensus mechanism.”

The rule suggested a phase-out plan for popular proof-of-work (PoW) cryptocurrencies such as Bitcoin and Ether that would allow them to switch their consensus mechanism to less energy-intensive methods like proof-of-stake (PoS).

While plans are in place to make Ethereum a proof-of-stake (PoS) consensus system this year, it is not clear if the same will be possible for Bitcoin.

The MiCA draft will be subject to a “trilogue” after the vote of the Parliament. This is a formal round between the European Parliament, Commission and Council.

Can renewable energy sources save Bitcoin?

Experts in renewable energy see two possible ways that crypto can be used to address power consumption concerns, first, by increasing demand for renewable energy sources. Second, by using blockchain technology to interact transparently and transparently with power grids in an auditable and measurable manner.

A small majority of members of the monetary committee voted for a compromise calling on the European Commission to propose alternative regulations. This is the EU’s executive arm that proposes new legislation.

“By January 1 2025, the Commission shall present to the European Parliament and to the Council, as appropriate, a legislative proposal to amend Regulation (EU) 2020/852, in accordance with Article 10 of that Regulation, with a view to including in the EU sustainable finance taxonomy any crypto-asset mining activities that contribute substantially to climate change mitigation and adaptation.”

Some politicians and regulators around the globe have criticized proof-of-work for their concerns about energy. EU leaders are worried that renewable energy could be used to sustain cryptocurrencies such as bitcoin, instead of being used for national purposes.