Cynthia Lummis’ Wyoming State Unveils Bitcoin Research Institute
State of Wyoming ushers institute to offer dedicated studies on Bitcoin to close knowledge gaps from misguided research.
The unveiling of the UW Bitcoin Research Institute, where pro-Bitcoin Senator Cynthia Lummis hails, is a critical undertaking. The institute aims to bridge the gap apparent in studies centred on the largest crypto by market value.
The University of Wyoming (UW) plans the institute to open doors in the Fall. The institute is domiciled at the College of Arts and Sciences to focus on generating high-quality studies on Bitcoin.
News of the institute emerged in Bradley Rettler X’s post. The Associate Professor at UW is a Bitcoin advocate and is slated for a director role at the institute.
Bitcoin Insitute in Wyoming
Rettler decries that the present academic research on Bitcoin is falling short owing to inadequate understanding. The scholar observed that a substantial number of the studies are error-prone, illustrating the 2018 University of Hawaii study that linked Bitcoin emissions likely to cause significant contributions towards global warming.
Rettler faulted Mora et al. prediction that Bitcoin emissions could single-handedly push emissions 2 degrees. The scholar indicated that the study failed to factor in the difficulty adjustment. Also, they lacked awareness of the existing block size cap.
Rettler explained the Bitcoin block size cap as the limitation in the data amount ( in megabytes) one can include within a single block on the blockchain. The initial cap is at 1 MB and limits the transactions processed in each block. The restriction facilitates network congestion management and energy consumption control. Rettler considers that the majority of academics let journalists down.
Rettler aimed a jab at the piece work by Nassim Taleb in his “Bitcoin Black Paper” book. The lack of knowledge was apparent on Layer 2 (L2) solutions such as Lightning Network. Also, the author overlooked the 21 million supply cap on Bitcoin.
Taleb severally labels Bitcoin a failure and forecasts its value to plunge to zero. In a July 2021 paper, Taleb attributes Bitcoin’s failure as a currency lacking governance. He expresses scepticism about using Bitcoin to hedge against inflation and safe haven investment. He considers few assets in history have matched the fragility portrayed by Bitcoin.
Wyoming Suitability for Bitcoin Institute
Rettler weighed on Wyoming’s suitability to host the institute. The associate professor indicated that UW is the perfect institution, citing the supportive laws and presence of pro-Bitcoin figures in Senator Lummis and Custodia Bank chief Caitlin Long.
Wyoming state has enacted progressive laws that transformed it into a blockchain innovation hub. Also, the state permits the Special Purpose Depository Institutions (SPDIs) to accommodate blockchain businesses.
Rettler points to the Sandbox created by Wyoming, which is a critical platform for testing new fintech ideas. Also, the state has legal recognition for the Decentralized Autonomous Organizations (DAOs) as LLC type.
The state had 2022 authorised the state-backed stablecoins issuance and, a year later, outlined guidelines for verifying the blockchain-based digital identity.
The state passed a legal framework in February last year to safeguard individuals against coercion in disclosing the keys to their digital assets. Doing so portrayed Wyoming’s devotion to establishing a favourable environment for crypto and DAOs.
Lummis has been among the proactive legislators supporting Bitcoin since started representing Wyoming in 2021. Besides, the Senator is behind a key push for crypto regulatory clarity.
Lummis address at the just concluded Bitcoin 2024 conference in Nashville laid down a roadmap proposing the strategic Bitcoin reserve. The Senator orients the initiative to help lower the national debt if the US acquires 1 million BTC by 2029.
The Wyoming senator urged the US to hold Bitcoin for at least two decades. The Bitcoin advocate termed BTC the solution and timely for the US to seize the Louisiana Purchase moment.
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