Bitcoin supporter Senator Cynthia Lummis’ home state of Wyoming will soon host the UW Bitcoin Research Institute, hoping to close the gap in studies centered on the world’s largest crypto.
Set to open sometime in the Fall within the College of Arts and Sciences at the University of Wyoming, the institute will focus on producing “high-quality” studies on Bitcoin.
Bradley Rettler, an Associate Professor at the university and a Bitcoin advocate, announced the news on X and will serve as the institute’s director.
Rettler believes current academic research on Bitcoin often falls short due to a lack of understanding. He noted that a number of studies are often filled with errors, citing a 2018 University of Hawaii study that suggested that Bitcoin emissions could significantly contribute to global warming.
“Mora et al. predicted ‘bitcoin alone could push emissions 2 degrees,’” he tweeted. “They failed to account for the difficulty adjustment and didn’t know there was a block size cap!”
The Bitcoin block size cap is a limit on the amount of data (measured in megabytes) that can be included in a single block on the blockchain. Initially set at 1 MB, it restricts the number of transactions processed per block. This cap helps manage network congestion and control energy consumption.
According to Rettlter, “too many of those academics have let them [journalists] down.”
Rettler also took a jab at Nassim Nicholas Taleb, known for his book “Bitcoin Black Paper,” which, as per Rettler, lacked awareness of Layer 2 solutions like the Lightning Network and for overlooking Bitcoin’s supply cap.
Taleb has repeatedly labeled Bitcoin a failure, even predicting its value would go to zero. In his 2021 July paper, Taleb wrote that Bitcoin had “failed as a currency without government, as a hedge against inflation, and as a safe haven investment,” adding, “few assets in financial history have been more fragile than Bitcoin.”
Why Wyoming?
But why Wyoming? “The University of Wyoming is the perfect place for this,” Rettler said, noting the state’s supportive laws and presence of influential figures like Senator Lummis and Caitlin Long, founder and CEO of Custodia Bank.
Wyoming’s progressive laws have made it a hub for blockchain innovation. The state allows for Special Purpose Depository Institutions (SPDIs) to serve blockchain businesses.
Wyoming has also created a “sandbox” for testing new fintech ideas and legally recognizes Decentralized Autonomous Organizations (DAOs) as a type of LLC.
In 2022, the state authorized the issuance of state-backed stablecoins, and in 2023 set guidelines for blockchain-based digital identity verification.
Wyoming also passed a law in February 2023 to protect individuals from being forced to disclose their digital asset keys, further establishing a favorable environment for cryptocurrencies and decentralized autonomous organizations.
Lummis, who has been representing Wyoming since 2021, is a proactive supporter of Bitcoin and cryptocurrency regulation.
At the Bitcoin2024 conference held in Nashville on Saturday, Lummis announced plans to propose a “strategic Bitcoin reserve” initiative aimed at reducing the national debt by purchasing 1 million Bitcoin (BTC) over five years. She emphasized that bitcoin would be held for a minimum of 20 years.
“This is the solution. This is the answer,” the Wyoming senator said to a crowd. “This is our Louisiana Purchase moment.”