Peter Brandt criticises Michael Saylor’s view on Bitcoin

The technical analyst and head of Factor LLC, Peter Brandt, has criticised MicroStrategy CEO Michael Saylor, who described Bitcoin as an energy-backed digital commodity.

Secured by energy only in the sense that it is useless without an exorbitant use of energy — and then without providing economic function. It is a huge myth that somehow $BTC is anything but energy consumption. https://t.co/9CnvoC0dQT

— Peter Brandt (@PeterLBrandt) July 21, 2022

“Secured by energy only in the sense that it is useless without an exorbitant use of energy — and then without providing an economic function. It is a huge myth that Bitcoin is anything more than an energy consumer,” Brandt wrote.

In response, Saylor stressed that “all goods consume energy.” He said the economic function of Bitcoin is to create a free global settlement network.

Your comments are always compelling and thoughtful. Thank you.

— Peter Brandt (@PeterLBrandt) July 21, 2022

“Because Bitcoin is a commodity, it can fulfil the role of global digital money. The economic function lies in granting property rights to 8 billion people, as well as creating a global settlement network, which had already transferred $17 trillion in value in 2022,” he wrote.

Brandt quipped that Saylor’s comments are always “thoughtful and compelling.” In the thread he also заявил that, despite the criticism, Bitcoin is one of the largest assets in his portfolio.

According to the Bitcoin Mining Council (BMC), over the past year the energy consumption of the Bitcoin network grew by 63%, while its hash rate increased by $137%.

Experts also noted that the share of green energy in miners’ consumption rose by 6 percentage points to 59.5% (among BMC participants it stood at 66.8%).

This is the organisation’s second report — the first released in 2021. In the community reacted negatively to the study — industry participants questioned the objectivity of the BMC.

As noted, the ECB criticised cryptocurrencies on the Proof-of-Work algorithm and noted the environmental merits of assets on Proof-of-Stake.

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