BIP-110 Proposal Sparks Fears of Self-Inflicted Harm to Bitcoin's Credibility

Michael Saylor has warned that Bitcoin faces its greatest threat from within - misguided protocol changes. He specifically targeted BIP-110, a proposal to restrict non-monetary data in transactions.

Saylor believes this could harm Bitcoin's credibility as a store of value and set a precedent for future transaction censorship.

Adam Back, CEO of Blockstream, agrees that consensus-level restrictions could damage Bitcoin's strength. He argues that the network relies on neutral, predictable rules - not a 'spam filter' that fails at filtering spam.

The BIP-110 signaling process remains active, with a possible activation decision approaching later in 2026.