According to market expectations, Ethereum’s transition from Proof-of-work to Proof-of-stake will take place today. Some say this could lead to the second cryptocurrency starting to take market share away from BTC.
Prominent Bitcoin advocates have slammed the update and are urging top crypto enthusiasts to prepare for war.
Michael Saylor Criticizes „Disinformation” About BTC’s Energy Usage
MicroStrategy Executive Chairman Michael Saylor Says Bitcoin Mining Can Become a Clean, Profitable, Modern Industry That Generates currency for remote parts of the developing world.
In the wake of Ethereum’s transition to proof-of-stake, Saylor has spoken out against what he calls „misinformation and propaganda” about the environmental impact surrounding proof-of-work BTC mining. PoW).
On September 1
, he shared a lengthy post on his Twitter account detailing his seven “high-level thoughts” on BTC mining and its impact on the environment. .
One of his main arguments is that BTC PoW mining is energy efficient. Instead, Saylor claims it is „the industry’s cleanest use of electricity and improving energy efficiency at the fastest rate of any major industry.”
He backs his argument with numbers from the Global Bitcoin Data Mining Review for the second quarter. This was put forward in July by the Bitcoin Mining Council, a group of
5 companies that claim to represent 50.5% of the global network.
Saylor pointed out:
„Our measurements show that approximately 59.5% of the energy used for bitcoin mining comes from sustainable sources, and energy efficiency has improved by
6% year over year .”
Attempts to distract authorities from „inconvenient facts”
Saylor’s argument stems from the fact that the BTC mining industry has been under a lot of pressure due to its environmental impact. It has even led some US states to take action to ban cryptocurrency mining.
Saylor claims that continuous network improvement and „continuous improvement in semiconductors” make it much more efficient to harness energy than big tech companies like Google, Netflix or Facebook.
„About $
-5 billion of electricity is used to power and secure a $
20 billion grid to date,” Saylor said.
„This makes Bitcoin much less energy intensive than Google, Netflix or Facebook, and 1-2 orders less energy than traditional 20th century industries like aviation, logistics , retail, hospitality and agriculture.”
Saylor also claims that 99.92% of global carbon emissions come from industrial energy use other than bitcoin mining.
Looking at the numbers, Saylor doesn’t think the argument of environmentalists condemning PoW mining is right.
In his view, it was instead an attempt to „draw negative attention to proof-of-work mining” and distract authorities from the „inconvenient fact that financial Securities crypto-assets are generally unregistered securities that are traded on unregulated exchanges”.
Saylor concludes by saying that all the negativity about PoW mining is taking away the potential benefits for the world.
„Bitcoin mining can bring a clean, profitable and modern industry that generates hard currency to remote parts of the developing world connected only through satellite links.”
Jack Dorsey Ethereum Merger Question
Twitter co-founder Jack Dorsey has also taken sides in the Bitcoin vs Ethereum debate. Dorsey, a prominent supporter of major cryptocurrency, questioned the Ethereum merger.
On Twitter, he posted a popular message from another famous Bitcoin maximist, Scott Sullivan. In the first line, Sullivan calls Ethereum a currency (shitcoin) and asks Bitcoin supporters to prepare for war.
Sullivan believes that after the Ethereum merger, a narrative war will begin between Bitcoin and Ethereum. Sullivan thinks bitcoin should be ready to fight back in the event of such a war.
With Sullivan’s message now a month old, Dorsey’s timing is certainly surprising.
What’s wrong with the Ethereum merger?
Ethereum merger will change Ethereum’s consensus mechanism from proof of work to proof of stake. Proof-of-work, which is the consensus mechanism used by the leading cryptocurrency, is considered extremely energy-intensive. A recent report from the White House mentioned considering a complete ban on BTC mining.
Proof-of-stake model reduces PoW power consumption by 99%. However, Dorsey and Sullivan have serious questions about this model. Sullivan believes that PoS is based on the principle of deterrence. PoS cuts the deposit from validators in case of dishonest behavior.