ECB Board Member Fabio Panetta, in his speech at Columbia University, criticized the crypto world by comparing it to the Wild West, while Proof of Work (PoW) consensus such as Bitcoin (BTC), Dogecoin (DOGE) and Ethereum (ETH) He states that higher data can be made for cryptocurrencies working with the mechanism.
“Crypto world has turned into the Wild West”
“This is exactly Satoshi Nakamoto’s dream of creating reliable money – a dream,” said Fabio Panetta. He says he has created instability and insecurity, that is, a new Wild West.
Fabio Panetta, after quoting Littlefinger, a Game of Thrones character, saying that “chaos is a ladder”, states that the crypto market is a bubble ready to burst. “We should not repeat the same mistakes by waiting for the bubble to burst and only then realizing how pervasive crypto risk has become in the financial system,” said Fabio Panetta, noting that some of the crypto investors may manage to get out in time, but many will fall into the trap. ECB Board Member likens crypto assets to a ponzi pyramid, saying:
As with a Ponzi scheme, such dynamics are however driven by an increasing number of investors who believe that prices will continue to rise and that there may be nominal value unsupported by any income or guarantee streams. process can continue. Until the enthusiasm fades and the bubble bursts.
Higher tax for PoW coins such as DOGE, BTC, LTC
As we reported as Kriptokoin.com, in his speech, Proof-of-Work (PoW) Blockchain’ Also mention crypto-assets based on crypto assets. Fabio Panetta says that PoW-powered cryptos like BTC, ETH, DOGE and LTC can cause massive pollution and environmental damage. According to Fabio Panetta
“So cryptoassets are speculative assets that can do great harm to society,” says Fabio Panetta, who currently derive their value mainly from greed, relying on the greed of others and the hope that the plan will continue unhindered.
Thus, the ECB Board Member states that the tax treatment of crypto assets is currently minimal and needs to be considered how they will be adequately taxed. And here is a separate thread on PoW-powered cryptos like DOGE, making the following assessment:
There may also be a case for higher taxation of certain crypto assets, such as those based on PoW, above and beyond the taxation of other financial instruments. Negative externalities that lead to sunk costs for society, such as high pollution, can be factored into the appropriate taxes imposed on participants (issuers, investors, and service providers) in crypto markets.
Top 15 cryptocurrencies working with PoW consensus 
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