‘Bitcoin... is cooked’ — ETH researcher sparks debate over ‘sound money’

Key Points

  • Ethereum researcher Justin Drake claims Ether will become "ultra sound" money as its issuance decreases, contrasting with Bitcoin's fixed supply cap.
  • Drake argues Bitcoin's supply cap could lead to security risks due to reliance on block rewards, making it vulnerable to attacks.
  • Bitcoin advocates counter that economic incentives, mining efficiency, and energy advancements will sustain Bitcoin's network security.
  • Drake proposes a "Croissant Issuance" model for Ethereum to manage supply and staking incentives.

Summary

Ethereum researcher Justin Drake has ignited a debate by asserting that Ether (ETH) will soon become "ultra sound" money due to its decreasing issuance, while Bitcoin (BTC) faces potential security risks as it approaches its 21 million supply cap. Drake's comments, made on X, highlight the contrasting monetary policies of the two leading cryptocurrencies. He points out that Bitcoin's reliance on block rewards for miner revenue could make it susceptible to attacks, especially as the cost to attack the network remains relatively low. In response, Bitcoin supporters argue that the network's sustainability is underpinned by advancements in energy sources, mining efficiency, and economic incentives, which will continue to secure the network even as block rewards diminish. Drake also acknowledges Ethereum's challenges, including issues with staking incentives and systemic risks associated with liquid staking platforms, proposing a new issuance model to address these concerns. The debate underscores the ongoing discussion about the long-term viability and security of major cryptocurrencies.

cointelegraph
February 11, 2025
Crypto
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