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BTC Stronger After Merge, Says MicroStrategy CEO Michael Saylor

17 Sep 2022 By: Anirudh Trivedi
BTC Stronger After M

On Saturday (September 17), Bitcoin evangelist Michael Saylor stated that the Ethereum Merge has strengthened Bitcoin. 

Saylor argues that the only universally accepted and verified way for producing a digital commodity is proof-of-work (PoW). 

The Ethereum price (ETH) has dropped below its support level of $1430, whilst the Bitcoin price (BTC) has remained stable and strong.

Michael Saylor Asserts BTC Stronger After ETH Merge

Ethereum successfully switched from proof-of-work (PoW) to proof-of-stake (PoS) with the integration of Ethereum Mainnet to the Beacon Chain on September 15. The Ethereum Merge became the most anticipated event in the crypto world, attracting not only the crypto community but also the traditional financial community.

On September 17, MicroStrategy chairman Michael Saylor asserted that Bitcoin is strengthening after the Ethereum Merge. He argues that the only established way for creating a digital commodity is PoW. In fact, he had already classified Ethereum (ETH) as a "security." After the Merge, Bitcoin currently holds 95% of the total market value of tokens based on the proof-of-work (PoW) consensus.

“I see Bitcoin strengthening rather than weakening. The only universally accepted and established mechanism for creating a digital commodity is proof-of-work.”

However, proof-of-work (PoW) has been criticized for its enormous carbon footprint, and Bitcoin is using PoW. Ethereum, on the other hand, has recently switched to a less energy-intensive PoS mechanism, reducing its energy use by 99.5%. Recently, SEC Chair Gary Gensler stated that Ethereum's switch to PoS has rendered it a "security" as per the "Howey Test."

Saylor believes that Bitcoin mining is the most efficient and cleanest industrial use of electricity. In addition, Bitcoin mining is becoming more energy efficient as it transitions to sustainable sources. Bitcoin, in fact, may be used to monetize unused natural gas or methane gas energy sources.

Furthermore, MicroStrategy has added BTC to its balance sheet. Recently, the company announced the sale of $500 million in MSTR shares in order to purchase additional bitcoins. Currently, Microstrategy has 129,699 bitcoins.

BTC Price Moving Strongly as Compared to ETH

While many believe Ethereum will surpass Bitcoin as the most valuable cryptocurrency, the ETH price has dropped after the Merge. Furthermore, the price has surpassed its support level of $1430; any further decline threatens a drop to $1,000.

Meanwhile, the BTC price has gained momentum following the Merge. At the time of writing, Bitcoin's price is trading at $19,839, up nearly 1%.

Read also: First-ever Crypto Regulation Framework Released by the White House