MicroStrategy co-founder Michael Saylor ratified that “there is no other alternative” comparable to Bitcoin and pointed out that, after Ethereum’s upgrade (The Merge), there will be “new perspectives” for BTC.
During a conference in Australia, Saylor indicated that Bitcoin “became stronger” after the Ethereum (ETH) merge, since the Proof-of-Work (PoW) consensus protocol is the only successful mechanism for the production of digital goods, according to Bloomberg.
However, he noted that Ethereum switched to a validation method that requires much lower amounts of energy to process transactions and secure the blockchain network, based on the Proof-of-Stake (PoS) protocol since last September 15, when the expected upgrade occurred.
Saylor added that Ethereum abandoned the proof-of-work system due to the power consumption required by this protocol, which was criticized by the community.
Bitcoin accounts for more than 90% of Proof of Work-based currencies
MicroStrategy’s CEO stated that bitcoin now accounts for 95% of the overall market value of cryptocurrencies using the Proof-of-Work (PoW) consensus protocol.
“It’s really the only universally accepted and proven method for creating a digital product,” Michael Saylor said.
MicroStrategy has invested about $4 billion in bitcoin purchases and last month reported a quarterly loss of more than $1 billion because of the cryptocurrency’s price drop.
Some experts argue that after the Ethereum merge (The Merge) there is a possibility that ETH will one day surpass BTC in price and capitalization.
Both cryptocurrencies have suffered a 60% drop in price due to the Bear Market of 2022.
United States regulates Ethereum after the Merge
The Ethereum Merge on September 15 coincided, practically, with the statement of the U.S. Securities and Exchange Commission (SEC), which affirmed, this Monday, September 19, that all Ethereum transactions are regulatable by the United States.
After filing a federal lawsuit against cryptocurrency influencer Ian Balina, the SEC said it has been conducting civil lawsuits against natural and legal persons for launching unregistered Initial Coin Offerings (ICOs) for years.
In paragraph 69 of the complaint, the SEC asserted that it had the right to sue Balina because his ICO was “validated by a network of nodes on the Ethereum blockchain, which are most densely clustered in the United States.”
If the Securities and Exchange Commission classifies Ethereum’s operations as similar to that of the U.S. stock exchange, the regulator would claim jurisdiction over all of Ethereum’s activities.
However, the chairman of the U.S. Securities and Exchange Commission has not yet set an official position on Ethereum regulation.
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