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Michael Saylor refutes claims that new mining council could centralize Bitcoin (BTC)

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on May 26, 2021
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  • Saylor says the council was formed to provide a solution to the problem of bitcoin’s energy usage.
  • North American Bitcoin miners make up 10% of the entire hashrate, while Chinese make up to 70%.
  • Bitcoin has been in a bearish state since Tesla suspended the cryptocurrency’s acceptance for payments.

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Chairman and Chief Executive Officer of Microstrategy Michael Saylor have disputed claims that the newly-formed Bitcoin Mining Council will lead to Bitcoin (BTC/USD) centralization.

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According to him, the Council was formed to provide a solution to the problem of Bitcoin’s energy usage. On May 25, Saylor and Elon Musk met with major Bitcoin miners in North America to propose ways of solving Bitcoin’s environmental issues. The committee was formed to accelerate sustainability initiatives for the cryptocurrency.

However, some argued that the Council could signal the beginning of centralization within the cryptocurrency space. While correcting this notion, Saylor reiterated that the Council cannot in any way impact the decentralized nature of cryptocurrencies. Rather, it was set to help “shape the narrative around the cryptocurrency’s energy use.”

The discussion was on energy safe

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Saylor said the discussion was centered on Bitcoin’s energy usage, with Elon Musk and eight North American Bitcoin miners present in the conference. The Miners make up about 10% of the entire Bitcoin mining power in the world, with the majority of other miners coming from China.

Bitcoin is having a turbulent month so far, following the negativity of environmental impact surrounding the cryptocurrency.

When Tesla announced that it has suspended the acceptance of Bitcoin for payments for its products, it sent the price of the token crashing slightly. Bitcoin’s further crash was helped by the mining crackdown situation in China. Tesla cited the high energy consumption rate as its primary reason for the decision.

Critics stated that the new Council makes Bitcoin and other cryptocurrencies lose their core values of decentralization.

To find a solution and reduce energy impact, the Council was set to make it possible to publish energy usage and the source of energy usage data.

Saylor has been a strong advocate of Bitcoin, as he added more than 92,000 BTC to his company’s balance sheet.

Critics compared the agreement to the ill-fated New York Agreement in 2017, which almost influenced Bitcoin’s decentralized nature.

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