Michael Saylor, the chairman of MicroStrategy, continues to advocate for Bitcoin (BTC) by advising miners to adopt the 'Bitcoin Standard.' This concept encourages miners to hold more Bitcoin in their treasuries rather than converting it into fiat currency. Saylor believes this approach will increase their profitability and secure the long-term sustainability of the Bitcoin network.
The Bitcoin Standard proposes using Bitcoin as a global monetary alternative, similar to gold in the past. This shift could disrupt traditional financial systems by positioning Bitcoin as an international reserve currency. Miners, who play a critical role in securing the network by validating transactions, would benefit from holding Bitcoin, especially as mining difficulty and operational costs rise.
Saylor’s advice comes at a time when Bitcoin mining difficulty reached an all-time high, increasing by 10.5% on August 1st. This surge in difficulty reflects growing competition among miners and could lead to higher operational expenses. However, Saylor suggests that embracing the Bitcoin Standard could help offset these costs by providing additional income streams, such as cloud mining and financial products based on Bitcoin.
Moreover, adopting this standard could grant miners more autonomy, as it reduces reliance on government-regulated financial systems. This strategy aligns with the broader movement towards decentralization in the crypto space. While some industry leaders, like Galaxy Digital’s CEO Mike Novogratz, advocate for integrating AI into mining, Saylor’s approach focuses on leveraging Bitcoin’s inherent value as a reserve asset to strengthen the network and enhance miner profitability.
