MICHAEL SAYLOR:PROOF OF RESERVES ISN'T WORTH THE RISK!

Michael Saylor, Executive Chairman of MicroStrategy, recently expressed his concerns about proof-of-reserves, calling it a "bad idea" due to security risks. According to Saylor, publishing wallet addresses is like handing over a treasure map to malicious actors, allowing them to track activities and potentially exploit the company's funds .

Key Points from Saylor's Argument:

Security Risks: Proof-of-reserves dilutes the security of the issuer, custodians, exchanges, and investors by making wallet addresses public.

Insecure Method: Saylor believes the conventional way of publishing proof-of-reserves is insecure and could lead to security breaches.

Alternative Solution: He suggests that a zero-knowledge proof that blinds wallet tracking could be a potential solution in the future.

Importance of Audited Liabilities: Saylor emphasizes the need for institutional-grade proof of assets and liabilities, netted out, with a Big Four auditor verifying the company's holdings and ensuring they haven't been rehypothecated or pledged .

Industry Context:

The concept of proof-of-reserves gained momentum after the collapse of FTX, with exchanges like Binance, Kraken, and OKX adopting transparency measures. However, Saylor's concerns highlight the potential risks associated with this approach, particularly for institutional investors .#WriteToEarnWCT #SaylorBTCPurchase $BTC #BTC #Bitcoin2025