Bitcoin is the money of the future

Key facts:
  • Michael Saylor of MicroStrategy debunked the myths about bitcoin mining pollution.

  • Caitlin Long believes that the Lightning Network will make a significant impact in the payments space.

Michael Saylor, CEO of MicroStrategy; Caitlin Long, CEO of Bitcoin Bank Avanti Financial Group; Senators Ted Cruz and Cynthia Loomis, two outspoken Bitcoin figures, discussed the importance and advantages of Bitcoin (BTC).

Everyone agreed to highlight The potential of cryptocurrency in times of high inflation Like that of the United States, above all because of its importance as a valuable haven and the freedom it affords its users.

The first to speak was Senator Cruz, who spoke about his reasons for believing that Bitcoin is a “revolution” that will play an important role in the future of the United States, The rest of the accompanying cryptocurrency is an important innovation.

Cruz highlighted the fact that Bitcoin is a type of money It is not a government monopolyLike paper money.

He said during the conference held by the Heritage Foundation, an organization since 1973: He plays An important leadership role in the conservative movement in the United States.

A senator from Texas commented Very optimistic about the upcoming times for Bitcoin and the rest of the cryptocurrencyHe believes that with cryptocurrencies, there is a process that will change the world in the future.

For Cruz, the main reason bitcoin is attractive is that it acts as a hedge against inflation.

“The government is printing paper money and inflation is coming to all of us, and we see the value of our savings dwindle as it gets more and more, and every dollar we have equals less and less and less,” the senator added.

It is important to note that the US reached a new record annual inflation of 8.5%, a 41-year high, last April, a fact reported by CriptoNoticias.

Cruz took the opportunity to Announce that you buy bitcoin every week And every month. “When the media reported that I bought $25,000 worth of bitcoin and people screamed in their heads, I enjoyed it.”

A law that allows for innovation

For her part, Senator Loomis reiterated the position that has appeared in the past, regarding the importance of creating a proper Bitcoin law. his intentions is to find the equilibrium point “Not to stifle innovation, but to promote innovation while creating an appropriate regulatory framework,” he said.

In this sense, he commented that it is important A regulation that allows the interaction between the US dollar and Bitcoin. We are working to get the law passed.

Loomis is proposing a law since 2021, which as he previously said, Seeks to protect innovation in the United States Meanwhile, allowing those trading bitcoin and crypto assets to pay the taxes due, CriptoNoticias reported.

Bitcoin without limits and privacy

On the other hand, Cruz considers that “part of the beauty of Bitcoin and cryptocurrency” is that Provide access to global finance To buy, sell and transfer value instantly no matter where you are.

At this point, Long mentioned the Bitcoin Lightning Network, considering that It will have a huge impact in the field of payments, Because it’s “a much better, faster, and cheaper way to move money.”

At the aforementioned meeting, the CEO also referred to stablecoins, emphasizing that The liquidity needs of the banking system will change dramatically. “Banks are going to have to rely on a lot of money, which they are doing now, and that’s a massive change.”

Long anticipates a period of turmoil in the banking system, if “stablecoins overlap and start interfering with non-dollar payment instruments such as, for example, bitcoin and a lot of things change.”

Cruz and Saylor disagree about central bank digital currencies

The US senator also commented that central bank digital currencies (CBDCs) are less private. Saylor said in the face of Cruz’s remarks I do not agree, specifically with privacy and state control.

“In fact, none of us have any kind of privacy today in our financial transactions, so it is inappropriate to say that CBD will give us less privacy than we have today,” said Saylor.

Long, Saylor, and Lummis (from left to right) discuss the regulation and environmental impact of Bitcoin mining and the Lightning Network. Source: screenshot / youtube.com

The business owner claims that People do not enjoy privacy in their financial dealingsbecause the forces of the system can get the information about all the transactions made by any person.

Banks are regulated. Banks are rated based on how well they cooperate with regulators, so what do you think banks do when the regulator calls and says I want XY or Z financial transactions?

Bitcoin mining pollution

When asked about the pollution emanating from bitcoin mining, Saylor commented that Satoshi Nakamoto’s invention, using Bitcoin’s Proof of Work (PoW), left “a fair and equitable ethical mechanism for creating a digital product.”

Saylor, whose company holds the largest reserves of bitcoin, pointed out that energy use is not a bad thing, because first and foremost, what It fuels digital energy and represents one tenth of the energy of civilizations To create something that is “eternally lasting and indestructible”.

The second reason it’s not really a problem is that a tenth of 1% of the energy is marginal waste energy, which can’t be used for any other purpose anyway. Saylor explained that this is basically bulk wasted energy that is typically paid for as two kilowatt-hours.”

. added The fiat financial system uses between 10% and 20% of the world’s total energy. Michael Saylor is promoting a formula to mitigate the environmental impact of bitcoin mining through the Bitcoin Mining Council.

One of the council’s goals is to further encourage the use of renewable energy for bitcoin mining. The group asks its members to be transparent about energy use, share experiences, and disclose the percentage of clean energy used and the use of fossil fuels.