Bitcoin Mining Experts Discuss the Relevance of Proof of Work Mining at the AIM Summit in Dubai
JKL Group CEO Lin Cheung joins the energy debate “Proof of Work vs Proof of Stake”
/EIN News/ -- DUBAI, United Arab Emirates, Nov. 28, 2022 (GLOBE NEWSWIRE) -- JKL Group (www.jkl.group) CEO Lin Cheung joined the industry experts in an energy debate “Proof of Work vs Proof of Stake” during the AIM Summit – leading alternative investment management summit hosted in Dubai on Nov 22, 2022.
Ever since the Ethereum Mainnet switched to Proof of Stake (PoS) mining algorithm on September 15th, the crypto community has been engaged in a lively debate on the relevance of Bitcoin native Proof of Work (PoW) algorithm. Leaders of the Bitcoin mining industry – including HIVE Blockchain, JKL Group, SATO Technologies and Lake Parime – were brought together to present insights into the current state of Proof of Work mining.
Panelists noted that the U.S. regulators have a longstanding history of scrutinizing PoS blockchains. On the 19th of September, the SEC Chairman Gary Gensler hinted that, since almost half (46%) of Ethereum nodes are hosted in the U.S., all Ethereum transaction fall under the U.S. government jurisdiction. Moreover, the SEC is known for classifying PoS cryptocurrencies as being unable to pass the Howey Test and, therefore, qualifying as securities. Panelists agreed that with the rise of regulations in the digital assets space, PoW based blockchains will become more relevant.
Another point discussed by the panel was Bitcoin mining’s role as load balancer to the power grid. Power stations are designed to function on a particular frequency with a low margin of tolerance. If electricity load outweighs demand for electricity, frequency will rise which may force power plants to disconnect from the grid. Conversely, frequency will decrease during peaks of electricity consumption that the grid cannot satisfy, which can disrupt the grid’s performance.
“Energy production and consumption are not stable. The storage of energy is expensive, inefficient at scale and leads to energy waste,” commented Lin Cheung. The process of Proof of Work mining has 3 features that makes it an efficient grid load balancer. First, PoW provides a stable and continuous demand for energy. Second, PoW mining operation can be switched on and off at any time. Third, PoW mining process is location agnostic.
About JKL Group
JKL Group was founded in 2017 by a team of seasoned professionals with backgrounds in traditional finance and expertise in global financial markets, asset management and quantitative investment strategies. The group's competitive edge is its end-to-end digital asset expertise, covering quantitative trading, lending, OTC services and Bitcoin mining.
Visit JKL Group’s website www.jkl.group to find out more about their digital asset services and Bitcoin mining facilities.
About AIM Summit
Launched in 2015, AIM Summit is The Leading Alternative Investment Management Summit gathering and connecting investors and managers in the world of alternatives (Hedge Funds, Private Equity, Venture Capital, Private Debt, Digital Assets, FinTech) with global industry leaders.
Contact: Investor Relations Team
Email: ir@jkl.capital
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