Read now to learn how Bitcoin can't be banned, no matter which government tries to stop it.
This issue of The HiFi Bitcoin Letters is free for everyone. To receive Bitcoin insights and analysis more frequently, consider upgrading to premium membership:
Thank you to those of you who have chosen to financially support my mission to provide honest Bitcoin education with a paid membership!
An unfortunate truth these days in the Bitcoin space is that people are willing to pass judgment against Bitcoin without actually bothering to research it. Case in point, the White House Office of Science and Technology released a report last week that casually proposed that the United States Congress should move to ban the Proof of Work consensus mechanism that Bitcoin relies on because of the amount of energy it uses:
Should these measures prove ineffective at reducing impacts, the Administration should explore executive actions, and Congress might consider legislation, to limit or eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining.
We’ve been here before. The country of China, which at one point was estimated to host over half of the Bitcoin network’s hash rate, outright banned Bitcoin mining within its borders towards the middle of last year. It wasn’t the first attempted ban, and if the United States were to actually try to ban Proof of Work, it probably wouldn’t be the last country to do it.
Bitcoin Can’t Be Banned
What many governments fail to realize is that Bitcoin bans don’t actually work. Take China’s ban for example: even though they banned Bitcoin mining nearly a year and a half ago, it’s estimated that about 20% of Bitcoin’s hash rate is still located in China.
The reason that Bitcoin bans don’t work is because Bitcoin mining can’t be stopped. It can’t be eliminated. It can’t be controlled.
In order to mine Bitcoin, you really only need a few things:
-
A basic computer (although most people these days use ASICs).
-
A way to communicate with other miners (typically an internet connection).
-
A power source.
Bitcoin mining doesn’t require permission from the government. And because mining requirements are so basic, it’s impossible for the government to actually keep people from mining. The most the government can do is scare some people into choosing to not mine at all or to take their miners to a country that’s more friendly to Bitcoin.
In short, mining bans don’t do much harm to the Bitcoin network, but they certainly are harmful to a country’s chances to reap the benefits of the coming Bitcoin-based financial system.
Bitcoin Is Worth It
Those who criticize Bitcoin because of its energy usage are turning a blind eye to the reasons why Bitcoin is worth it:
Bitcoin Is Inflation-Resistant
Bitcoin offers the world the opportunity to return to “sound money”, or money that isn’t manipulated daily by governments like fiat currencies unfortunately are. People are no longer forced to watch their wealth melt away thanks to inflation, and no other money protects your wealth as well as Bitcoin does.
Bitcoin Is Censorship-Resistant
Fiat currencies and non-Bitcoin cryptocurrencies offer users one option: listen to those in power or else you might find yourself cut off from your money. That reality certainly doesn’t lend itself towards growing freedom, financial or otherwise.
Bitcoin on the other hand can’t be censored and it can’t be confiscated when you protect it yourself (and protect it well). Do, say, or believe what you want; there’s no one who can take away your Bitcoin.
Bitcoin Is Available To All
A large portion of the world’s population is completely unbanked. Not to mention that hundreds of millions of people are forced to use failing fiat currencies. Most people live under truly dire financial circumstances.
People of all walks of life can enter the Bitcoin ecosystem. There really are no barriers to using Bitcoin, other than the barriers you choose to impose on yourself.
Next time someone tries to convince you that Bitcoin uses too much energy, even if that person sits in a government’s “hallowed” halls, remind them that few things in life are more important than money that returns freedom and sovereignty to people in the world who so desperately need both.
Like What You See, But Not A Subscriber Yet?
Consider subscribing for weekly emails about Bitcoin, real-time community discussions, and more!
Wish You Could Listen To This Post As A Podcast?
Can’t Get Enough Bitcoin In Your Life? Follow Me On Social Media:
🙋🏽♂️Did You Enjoy This Edition Of The HiFi Bitcoin Letters?
This 3-question survey is your chance to tell me how I can improve the newsletter for you.
This is not financial or business advice. This newsletter and related content are for informational purposes only. Cryptocurrencies and digital assets can be risky. Always do your own research before making any sort of investment.
