BTC: Michael Saylor Talks About “Bitcoin Mining and the Environment”

BTC: Michael Saylor Talks About “Bitcoin Mining and the Environment”

On Wednesday (September 14), Michael Saylor, co-founder and CEO of business intelligence software company MicroStrategy Inc. (NASDAQ:MSTR), addressing some of the “misinformation and propaganda” surrounding the environmental impact of bitcoin mining.

It should be noted that on August 11, 2020, MicroStrategy announced by a press release It “purchased 21,454 bitcoins at a total purchase price of $250 million” to use it as “a primary reserve asset for the treasury.”

Saylor said at the time:

Our decision to invest in Bitcoin at this time was driven in part by a combination of macro factors affecting the economic and business landscape that we believe create long-term risks for the company’s treasury program – risks that must be proactively addressed.

Since then MicroStrategy has continued to accumulate Bitcoin and its former CEO has become one of the most vocal Bitcoin advocates. MicroStrategy’s latest bitcoin dollar purchase, which Saylor tweeted on June 29, 2022, means the company is now accumulating about 129,699 bitcoins, which were acquired for roughly $3.98 billion at an average price of about $30,664 each. Bitcoin.

On August 2, 2022, MicroStrategy released its “Financial Results for the Second Quarter of 2022”. company press release On its most recent quarterly earnings report, it was announced that “effective August 8, 2022, Michael Saylor will take over as the new CEO, and Fung Lu, the company’s president, will take over as the company’s new CEO and a member of the Board of Directors.” It also stated that “Mr. Saylor will remain the Chairman and CEO of the Company.”

The press release went on to say that “As CEO, Mr. Saylor will focus primarily on innovation and the company’s long-term strategy, while continuing to oversee the company’s bitcoin acquisition strategy as chair of the Board’s Investments Committee.”

Yesterday, in a note Addressed to “journalists, investors, regulators, and anyone else interested in bitcoin and the environment,” Saylor shared “some high-level thoughts on bitcoin mining and the environment.”

Saylor pointed out to critics of Bitcoin’s high energy consumption that:

Bitcoin runs on lingering excess power, generated at the edge of the grid, in places where there is no other demand, in times when no one else needs electricity… Bitcoin mining is the most efficient and cleaner industrial use of electricity, improving its efficiency in Energy usage at the fastest rate of any major industry… approximately $4-5 billion of electricity is used to power and secure a $420 billion grid as of today, settling $12 billion per day ($4 trillion annually) …

The only proven method for creating a digital good is proof of work (bitcoin mining) that is deployed in a fair and equitable manner (ie no pre-mining, no ICO, no controlling foundation, no underlying software development team, no chain of forks). Forced hard upgrades that change the monetary protocol materially) … 99.92% of the world’s carbon emissions are due to industrial uses of energy other than Bitcoin mining … There is a growing awareness that Bitcoin is very good for the environment because it can be deployed to monetize stranded energy sources. From natural gas or methane…radical Bitcoin proponents believe that Bitcoin is a tool for the economic empowerment of 8 billion people around the world.

On September 4, CoinDesk mentioned That Saylor spoke (via video call) on Saturday (September 3) to an audience at the Baltic Honeybadger conference in Riga, Latvia, and that he said this about what his company is doing with the Lightning Network:

MicroStrategy has had some R&D projects underway now as we work on enterprise applications for Lightning: the enterprise Lightning wallet, enterprise Lightning servers, enterprise authentication.

He also explained why he believes Lightning has a great future:

The advantage of Lightning is not only that you can scale bitcoins to billions of people, or push the transaction cost to almost nothing, but also, the ethos of bitcoins is to move very carefully and not move quickly on the subglobal base layer. The consensus is, however, in Lightning, you can move development functionality more aggressively and take more risks with apps than you can with the underlying Bitcoin layer.

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