MicroStrategy CEO criticizes Ethereum’s transition to the PoS algorithm

According to Michael Saylor, The Merge upgrade will open up new opportunities for hackers

30.07.2022 - 10:30

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2 min

What’s new? Michael Saylor, head of MicroStrategy, an analytics software developer, criticized the Ethereum blockchain and its upcoming upgrade, The Merge, in which the network will change its consensus algorithm from Proof-of-Work (PoW) to Proof-of-Stake (PoS). During a speech at the Blockchain Economy Summit in Istanbul, Saylor said it may take additional time to optimize the ecosystem of the second-largest cryptocurrency by capitalization. He also believes The Merge will open up new opportunities for hackers. According to CoinMarketCap, the head of MicroStrategy said that he and other institutional investors want to see a finished version of the protocol that functions without hacks for 5-10 years.

CoinMarketCap’s material

What else did Saylor add? The head of MicroStrategy notes that Ethereum’s monetary policy could change over the next three years, while bitcoin’s policy “has been decided for the next 1000 years.”

Saylor wishes that no one person could change Ethereum’s protocol. In his view, investors should be assured that the assets they own will not be diluted. The head of MicroStrategy added that he holds this position with all digital assets, which is why he does not own coins such as Dogecoin or shares of some major tech companies.

Saylor previously called bitcoin “the most certain thing in a very uncertain world.” He believes that the first cryptocurrency is a tool for economic empowerment. The head of MicroStrategy also noted that he and his company would continue to invest in bitcoin.

As of July 30, MicroStrategy has 129 699 BTC (about $3,1 billion at the current rate at 09:00 UTC — $23 899) on its balance sheet. On June 29, the company bought 410 bitcoins for $10 million at a price of $20 817.

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