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> I'm not a fan of Bitcoin but this statement is nonsense. Only if you read it as a statement of fact instead of as a policymaker giving hints on their view of

> I'm not a fan of Bitcoin but this statement is nonsense. Only if you read it as a statement of fact instead of as a policymaker giving hints on their view of the market. key word: policy maker. As in, they could enact policies which push the value towards 0. Yes, limited to EU countries, and even there limited, but it is possible that banking restrictions make it effectively impossible to hold crypto in anything which resembles a bank account (including i.e. Coinbase) which would certainly put a damper on EU demand and would set precedent for other countries.

RandomLensman 4y ago
However, European regulators also approved/allowed various investment products related to cryptocurrencies and law makers are creating a framework for markets/services around them (MiCA). So while the ECB might express one view here, I am not sure it is a homogeneous view among policy makers in the EU.
compsciphd 4y ago
As a simple police matter. we can track the flow of bitcoin very easily. Imagine we created a law, one is not allowed to interact with any "blacklisted/tainted" account/wallet and any account/wallet that interacts with a blacklisted/tainted account/walletn after its been marked as blacklisted/tainted is automatically blacklisted/tainted itself (easy to determine in bitcoin). I'd hazard to say, that such a policy would have a quick impact on bitcoin's valuation. now, at first glance, this type of law might seem reasonable - if an account has been marked as doing illegal actions, any account that interacts with it is benefiting from said illegal actions. However, this would setup a world of griefers. In bitcoin (I believe) you don't really have the ability to accept or reject transfers. if someone transfers coins to my wallet's address, it will be mine. Imagine someone who gains access to a blacklisted wallet and just transfers tiny amounts to all the addresses that contain massive sums of bitcoin, thereby tainting it all.

RandomLensman 4y ago

However, European regulators also approved/allowed various investment products related to cryptocurrencies and law makers are creating a framework for markets/services around them (MiCA). So while the ECB might express one view here, I am not sure it is a homogeneous view among policy makers in the EU.

compsciphd 4y ago

As a simple police matter. we can track the flow of bitcoin very easily. Imagine we created a law, one is not allowed to interact with any "blacklisted/tainted" account/wallet and any account/wallet that interacts with a blacklisted/tainted account/walletn after its been marked as blacklisted/tainted is automatically blacklisted/tainted itself (easy to determine in bitcoin). I'd hazard to say, that such a policy would have a quick impact on bitcoin's valuation. now, at first glance, this type of law might seem reasonable - if an account has been marked as doing illegal actions, any account that interacts with it is benefiting from said illegal actions. However, this would setup a world of griefers. In bitcoin (I believe) you don't really have the ability to accept or reject transfers. if someone transfers coins to my wallet's address, it will be mine. Imagine someone who gains access to a blacklisted wallet and just transfers tiny amounts to all the addresses that contain massive sums of bitcoin, thereby tainting it all.