Michael Saylor Challenges Proof-of-Reserves: A Security Risk for Bitcoin Exchanges?
In a bold statement at Bitcoin 2025, MicroStrategy executive chairman Michael Saylor criticized proof-of-reserves (PoR) as a flawed practice that exposes exchanges to security risks. With Bitcoin trading at 109,532.01 USDT, his remarks have ignited a debate on transparency versus security in the crypto space.
Michael Saylor Rejects Proof-of-Reserves as Security Risk
MicroStrategy executive chairman Michael Saylor has sparked debate in the cryptocurrency community by dismissing proof-of-reserves (PoR) as fundamentally flawed. His comments at Bitcoin 2025 challenged a practice widely regarded as essential for exchange transparency.
Saylor argues current PoR implementations create security vulnerabilities by exposing sensitive operational data. "It’s equivalent to publishing your corporate bank statements," he stated, warning that AI-powered analysis could exploit such disclosures. The remarks come amid renewed scrutiny of exchange safeguards following historical collapses like FTX and Mt. Gox.
The critique surfaces as institutional adoption accelerates, with Bitcoin’s role as a treasury asset gaining mainstream acceptance. Saylor’s position reflects growing tension between transparency demands and enterprise-grade security requirements in maturing crypto markets.
Quantum Computing Threatens Crypto Security Sooner Than Expected
Google Quantum AI researcher Craig Gidney’s latest findings reveal a seismic shift in encryption vulnerability timelines. The breakthrough demonstrates quantum computers could crack RSA encryption—a foundational technology for digital security—using just 5% of the previously estimated resources.
While Bitcoin’s elliptic curve cryptography differs from RSA, both systems face existential threats from Shor’s algorithm. The revelation sends ripples through crypto markets, particularly for assets like BTC that rely on mathematical assumptions now appearing more fragile.
Security experts note the timeline for quantum supremacy remains uncertain, but the research accelerates pressure on blockchain developers to implement quantum-resistant protocols. Major exchanges handling affected coins may need to overhaul wallet infrastructure sooner than anticipated.
Bitcoin Price Projected to Reach $135K by July 2025 Amid M2 Money Supply Correlation
Bitcoin’s price trajectory suggests a potential surge to $135,000 by July 2025, according to a research-based analysis. The cryptocurrency has demonstrated notable growth over the past month, with its current price reflecting this upward momentum.
The forecast hinges on Bitcoin’s historical correlation with the US M2 money supply, which encompasses physical currency, checking deposits, savings accounts, and money market funds. Increased M2 liquidity often flows into risk assets like Bitcoin, creating a predictable price pattern.
Analysts observe that bitcoin mirrors M2 movements with a consistent lag. Recent M2 expansion has further bolstered the case for Bitcoin’s bullish outlook, reinforcing its role as a macroeconomic hedge.
Tether Reinvests $5 Billion Profits into US Companies Amid $120 Billion US Debt Holdings
Tether, the issuer of the world’s largest stablecoin USDT, has allocated approximately $5 billion of its profits over the past two years to investments in US-based companies and infrastructure. CEO Paolo Ardoino revealed the strategy in a May 26 post, framing it as a "pro-America" initiative spanning decentralized media, neuroscience, and Bitcoin mining.
Notable beneficiaries include video platform Rumble, brain-computer interface startup Blackrock Neurotech, and mining firms like Swan Bitcoin. The stablecoin giant simultaneously maintains $120 billion in US debt holdings, underscoring its dual role as both crypto innovator and traditional finance participant.
Bitcoin Consolidates Above $106K as Bond Markets Show Stress
Bitcoin’s price action suggests a potential bullish consolidation phase, with the cryptocurrency finding tentative support above $106,000 after retreating from its recent all-time high of $112,000. The $106,600 level appears to be establishing itself as a new foothold for the next potential upward move.
Global bond markets are flashing warning signs, with the U.S. Treasury facing particular challenges in finding buyers for long-duration debt. Despite a recent dip in the 10-year yield from 4.6% to 4.45%, the overall trend remains concerning for traditional finance participants.
