Censoring Bitcoin and Ethereum

𝐋𝐄𝐀𝐑𝐍 𝐓𝐎 𝐁𝐔𝐘 𝐀𝐍𝐎𝐍𝐘𝐌𝐎𝐔𝐒 𝐁𝐈𝐓𝐂𝐎𝐈𝐍 𝐀𝐍𝐃 𝐂𝐎𝐈𝐍𝐉𝐎𝐈𝐍:
https://www.trader.university/courses/38824-the-ultimate-guide-to-bitcoin
Use the discount code YT99 to get the best price.

In this video, I discuss OFAC and other censorship at the protocol level (block production) for both Bitcoin and Ethereum.

I conclude that Ethereum is at much greater risk, due to its reliance on a proof of stake consensus mechanism that virtually ensures increasing centralization. Large validators like Coinbase and Lido will always be government-regulated, and thus will be forced to censor transactions that the government doesn't like.

By contrast, large Bitcoin mining companies come and go, due to the difficulty of mining Bitcoin profitably across cycles. Centralization is much less likely when it comes to proof of work protocols like Bitcoin.

Staking pools custody your ETH, making them vulnerable to government regulation and confiscation. By contrast, Bitcoin mining pools exist only in cyberspace, with the actual ASICs distributed across the world in people's basements and garages.

The Bitcoin transaction fee market also incentivizes new miners to begin mining once transaction fees get juicy enough. This can help previously censored transactions to make it into the next block.

Not investment advice! Consult a financial advisor.

OFAC censorship being enforced by Ethereum stakers:
https://www.mevwatch.info/

OFAC:
https://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control

OFAC sanctions Tornado Cash:
https://home.treasury.gov/news/press-releases/jy0916
https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808

ETH staking pool pie chart:
https://beaconcha.in/pools

Lido is backed by US venture capitalists:
https://www.crunchbase.com/organization/lido-b607/company_financials

Core Scientific files for bankruptcy:
https://www.coindesk.com/business/2022/12/21/core-scientific-one-of-the-largest-bitcoin-miners-files-for-bankruptcy-protection/

BlockFi's ASICs will get dumped too:
https://decrypt.co/120265/defunct-crypto-lender-blockfi-granted-approval-sell-assets

Bitcoin mining pool distribution:
https://btc.com/stats/pool

Bitcoin Controlled By Two Mining Pools?
https://www.youtube.com/watch?v=jPqyusHH850&ab_channel=TraderUniversity

A Bitcoin Miner In Every House and Business:
https://www.youtube.com/watch?v=ApxdZG1dP-M&ab_channel=TraderUniversity

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#bitcoin
#ethereum
#censorship

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