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Ethereum Foundation researcher: ETH will become a super robust currency, while Bitcoin will ultimately be hindered by its supply cap

ChainCatcher news, according to Cointelegraph, Ethereum Foundation researcher Justin Drake believes that as the issuance of ETH decreases, it will "soon" become an "ultra sound" currency, while Bitcoin will be "phased out" as it approaches its supply cap of 21 million. This statement has sparked a debate between the two communities.Drake recently posted on X that to make ETH "ultra sound again, either the issuance must decrease or the burn rate must increase. I believe both will happen."Ethereum's issuance became deflationary after the merge in 2022, but it is set to increase starting in April 2024 after the Dencun upgrade, as the Dencun upgrade reduced fees on L2 networks and the total burn amount.However, Drake compared the issuance of ETH to that of Bitcoin, noting that since the Dencun upgrade, Bitcoin's supply has increased by 655,000 coins, while the Ethereum network has added 462,000 ETH in the same period. At current prices, the former is worth about $63.5 billion, while the latter is only worth $1.25 billion. Drake stated, "Currently, the supply of BTC is growing at 0.83% per year, which is 66% faster than ETH."He also pointed out that Bitcoin's supply cap of 21 million could lead to long-term security risks, as miners' revenue primarily comes from block rewards (about 99% in the past week, with only 1% from network fees). He added that due to the relatively low cost of attacking the network, Bitcoin is easily susceptible to security risks.However, analyst James Check stated that critics of Bitcoin's sustainability fail to consider factors such as energy advancements, mining efficiency, and economic incentives. He said that if Bitcoin reaches a reserve status, high fees are inevitable, similar to the fees institutions pay for the secure storage of gold.He added that over time, network fees will cover operational costs, while subsidies have already covered capital expenditures. Check also believes that advancements in energy, particularly nuclear energy and the utilization of wasted energy, will lower mining costs.
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