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Seasoned cryptocurrency advocate and expert Chris Blec published an eccentric theory about the true motivation behind the launch of BlackRock Bitcoin-based exchange-traded fund. However, one statement in BlackRock's filing might prove his theory.
PoS for regulators, PoW for El Salvador: Chris Blec shares counterintuitive take on BlackRock Bitcoin ETF
BlackRock, a $10 trillion investing heavyweight, might be requesting Bitcoin (BTC) ETF approval, being interested in supporting its PoS fork. Its hypothetical proof-of-stake network, developed as an example of eco-friendliness and regulatory compliance, might lead to BlackRock's dominance in the Bitcoin (BTC) segment.
Blackrock:
— Chris Blec (@ChrisBlec) June 16, 2023
* Runs first and largest BTC ETF
* Becomes wildly successful
* Heavily funds Bitcoin development
* Proposes “regulatory & eco friendly” PoS fork
* Loses community opinion but adopts fork as “Bitcoin” anyway (as do most govts)
* PoW fork just for pirates & El Salvador
This theory was shared by crypto influencer Chris Blec with his 48,700 Twitter followers. To achieve this dominance, BlackRock might be interested in providing Bitcoin (BTC) development with heavy funding.
Then, even if it fails to persuade the community of the benefits of Bitcoin 2.0 on proof of stake, BlackRock will be able to adopt the new network as the only "legit" Bitcoin (BTC) standard.
It is stated in the BlockRock filing that its team reserves the right to choose which network is the only appropriate one. Also, it is specified that it should not necessarily be the most valuable fork of the largest blockchain.
As covered by U.Today previously, some key experts doubt the fact that BlackRock is serious about its Bitcoin ETF ambitions that have been widely discussed in the media in recent days.
What happened to EthereumPoW (ETHW)?
Once the PoS fork is adopted by BlackRock, the "old-fashioned" proof-of-work (PoW) blockchain will only be used by enthusiasts: "pirates and El Salvador."
At least once cryptocurrency segment went through a similar process. When Ethereum (ETH) migrated to PoS, a group of influential miners launched the EthereumPoW (ETHW) project.
The oldest version of Ethereum (ETH) predictably dropped by 98.99% since its launch. However, it cannot be considered a complete failure.
Even amid the crypto recession, ETHW is the 143th largest coin by market cap with an over $154 million valuation. It is still traded on Tier 1 CEXes like Bitfinex and Kraken.