- Michael Saylor claims Bitcoin can stifle incidents of cyber attacks.
- He claims that this will be possible because of Bitcoin’s nature as it revolves around energy.
- Bitcoin trades at under $40,000 amid the tensions in Eastern Europe.
Bitcoin bull, Michael Saylor thinks that Bitcoin might be the answer against DDoS and other cyber attacks. He goes on to claim that the asset “will never be a currency.”
Bitcoin Will Rein Cyber Attacks
Michael Saylor stated that Bitcoin is the answer to the hordes of rampaging attacks in cyberspace. The MicroStrategy CEO stated this in an interview with CNBC over the weekend, citing Bitcoin’s energy usage as an integral part of the solution.
He claimed that this could be the most important use case scenario for Bitcoin beyond usage in fundraising or a speculative tool for companies to put on their balance sheets. He said that as “digital energy”, Bitcoin is the best tool against scammers and hackers because there is currently “conservation of energy in the cyberspace.”
He uses the analogy of physically going to a hotel to break items and getting charged for the repairs as compared to using a python script to gain access to any hotel on earth and not get charged any money. Saylor claims that the latter is the status quo and takes the form of denial of service attacks which does not cost the attacker up to a dollar to attack.
“The simple solution is to let someone get an orange checkmark next to their name if they post $10 worth of satoshis and you would have a billion orange checks,” he said. “Now you lock down all websites and all inboxes and all comments to people with the orange check”. He adds that individuals will only have to pay $10 once in their lives because they are not cyber attackers but criminals that impersonate other accounts and use bots will have to post “$400,000 in Bitcoin every ten minutes.”
Bitcoin Will Never Be A Currency
After being asked for his opinion on the status of Bitcoin, Saylor added that the asset class will never be a currency. He thinks that the asset should be thought of as property because “currency is defined by a nation-state” unless it allows for the transfer of assets tax-free.
He adds that it might work for some instances but it would never be able to compete with a currency despite the threshold that legislators are mulling over. Saylor adds that Bitcoin as property works well because of the opportunity to borrow against your holdings while keeping your expense ratio lower than expected appreciation of Bitcoin.
“It’s a much wiser financial decision,” he said. “That’s a time-tested investment strategy by pretty much every successful investor.”
Bitcoin trades at $38,317 with a market capitalization of $726 billion. Transaction volumes are at $26 billion which is an 8% decline in the last 24 hours. Analysts remain bullish with the hopes that the asset could rally as economic sanctions are put in place against Russia.