Michael Saylor, co-founder of MicroStrategy Inc., has said that the Ethereum blockchain update will boost Bitcoin's outlook. The update will help Bitcoin gain a wider audience, according to Saylor, one of the most ardent advocates.
Ethereum replaced its energy-intensive proof-of-work system with proof-of-stake, which has been criticized for its large carbon footprint, in favor of more energy-efficient proof-of-stake.
The proof-of-work system is still used by Bitcoin.
As of now, Bitcoin is the dominant player in the proof-of-work token market, accounting for 95% of its value.
The only universally accepted and proven method for creating a digital commodity is proof-of-work.
According to Michael Saylor, CEO of MicroStrategy, this trend is likely to continue, with Bitcoin getting stronger rather than weaker.
According to blockchain analysts at TradeAlgo, Ethereum's upgrade known as the Merge will give its native token, Ether, a better chance of surpassing Bitcoin. Both coins are down about 60% in 2022.
During the Australia Crypto Convention, Mr. Saylor reiterated his support for Bitcoin as he discussed the difficulties of transferring the value of physical properties such as gold, company stock, and real estate.
According to Saylor, Bitcoin is backed by $20 billion worth of proprietary mining hardware and $20 billion worth of energy in its proof-of-work consensus mechanism.
“If you have a property in Africa, no one's gonna want to rent it from you if they live in London. But if you have a billion dollars of Bitcoin, you can loan it or rent to anybody in the world.”
Furthermore, Saylor emphasized the high maintenance costs and taxes associated with owning and inheriting physical property over the long term, which doesn't exist with Bitcoin.
Global geopolitical tensions also determine what assets one can carry across jurisdictions.
“Bitcoin represents a property that you can acquire in small pieces that you can carry with you anywhere you go. You can give to your children's children's children's children. And in 250 years, maybe your family still owns the property.”
MicroStrategy, a maker of enterprise software, has spent approximately $4 billion on Bitcoin purchases.
Last month, the company reported a quarterly loss of more than $1 billion related to the plunge in the value of the digital asset.
Saylor remains executive chairman after shedding his chief executive officer role.
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