The Rise of Michael Saylor in Bitcoin Advocacy
When I first came across the term Bitcoin (BTC) in the mid-2010s, Michael Saylor wasn’t a part of the conversation. Fast forward to today, and it’s hard to discuss Bitcoin without bringing him up.
Back in 1989, Saylor co-founded MicroStrategy, a software company. But everything changed for him during the 2020 pandemic when he noticed Bitcoin’s potential. That’s when he pivoted his company into a BTC-focused digital asset vault.
Essentially, this vault, called DAT, collects cryptocurrencies to hold on corporate balance sheets. Much like how traditional companies store cash, these DAT firms also keep crypto assets.
Over the years, MicroStrategy has amassed a significant Bitcoin stash. Last year, the company rebranded to Strategy and now proudly claims to have the largest Bitcoin treasury in the world.
As of January 25, the company holds an impressive 712,647 Bitcoins on its balance sheet.
However, Saylor has recently expressed his concerns about Bitcoin’s future, labeling it as facing the “biggest threat.” He stated on January 24, “The biggest risk to Bitcoin is ambitious opportunists who insist on changing the protocol.”
These “opportunists” he refers to are developers looking to introduce new features, particularly in light of potential threats from quantum computing.
Bitcoin is structured to encrypt financial transactions, making sensitive financial data accessible only to those directly involved in the exchange. Yet, the cryptocurrency community had long believed that its code was invulnerable to technological evolution. The advent of quantum computing, though, is raising eyebrows.
Unlike typical computers that work with binary, quantum computers utilize qubits, which can represent multiple combinations of 1s and 0s simultaneously, drastically increasing computational power.
With the rise of quantum computing, Bitcoin’s encryption could potentially become compromised. Consequently, Bitcoin developers are exploring updates to bolster security against these developments.
Analyst Willy Wu noted that discussions surrounding quantum risks among developers have intensified recently. Coinbase, a major cryptocurrency exchange, is taking proactive measures by setting up an Advisory Committee dedicated to Quantum Computing and Blockchain.
Additionally, Bitcoin Improvement Proposal 110 (BIP-110), aimed at controlling non-financial data “spam” on the network, is gaining traction. As of late January, a small fraction of the nodes on the Bitcoin network showed support for this proposal.
Some, like Thaler, argue against altering Bitcoin’s protocol, emphasizing the importance of maintaining its integrity. He has previously advised against introducing unnecessary risks to the network.
“Protect your network. Don’t abuse your network. Make sure your network is healthy. Don’t introduce unnecessary risks to your network that could spread disease,” Saylor shared last September.
It’s essential to remember that the Bitcoin we’re familiar with today is a product of years of development. This evolution has taken many forms, including the transition from single-signature to multi-signature wallets and simplifying complex keys into more user-friendly formats.
While apprehensions about introducing bugs are valid, it’s equally crucial to acknowledge that evolution is key to Bitcoin’s future. This is why Saylor’s recent statements have sparked considerable debate.
Wall Street veteran Fred Krueger responded, asserting that “the biggest risk to Bitcoin is quantum,” a sentiment echoed by Zcash co-founder Eli Ben-Sasson, who cautioned about Bitcoin’s potential ossification due to its entrenchment in the corporate sphere.
“It’s ossification, and the increasing bear-hugging by major companies is turning it into another Rolex,” he noted.
Moreover, some users have pointed out that adhering too strictly to the original intentions of Bitcoin’s creator, Satoshi Nakamoto, could actually be detrimental. They warn that if the protocol can’t adapt or scale, it could lose its foundational purpose.
“In many ways, you are the biggest risk to Bitcoin,” remarked one user.
However, not all agree with Thaler. Others argue that protocol stability is paramount and that altering the fundamental characteristics of Bitcoin would undermine the trust that it is built upon.
As of the latest data, Bitcoin is trading at $89,211.66, with a slight dip of 2% in the previous 24 hours.
