Vitalik Buterin is still destroying Bitcoin and giving it no future!

Buterin also gave his thoughts on some of the criticism leveled at the Proof-of-Stake method, ahead of Ethereum’s upcoming “Merge” event.

Fears about the future of bitcoin

On an interview from September 2 with economics writer Noah Smith, the creator of Ethereum said he is “worried [au sujet du Bitcoin] for two reasons.He explained that he thinks Bitcoin could face long-term issues due to its fee model. Bitcoin currently distributes coins to miners as payment for securing the network, but since the protocol has a hard supply cap of 21 million, the network will end up relying solely on transaction fees to keep it secure. Buterin said this was a problem because bitcoin is “fails to raise the level of fee revenue required to secure what could be a multi-trillion dollar system. “The amount of fees Bitcoin generates to other protocols has long been a hot topic of discussion in the crypto community. According Crypto Fees bitcoin has averaged $225,000 in fees over the past week, trailing DeFi stalwarts like Aave and Uniswap. The biggest fee generator is the protocol created by Buterin, which brought in around $2.7 million over the same period.

Buterin said he also had fears for bitcoin because “Proof of Work offers far less security per dollar spent in transaction fees than Proof of Take,” arguing that it would be problematic to have a $5 trillion network that only costs $5 billion to attack. Buterin also pointed out that Bitcoin’s abandonment of the Proof-of-Work method would be “politically unfeasible“.

Buterin’s comments are likely to spark outrage in the crypto community. Bitcoin’s staunchest advocates have long argued that proof of work is a fundamental part of network design. Others have made similar points to Buterin regarding the highest cryptocurrency pricing model, although as bitcoin is expected to issue coins until around 2140, this issue is generally overlooked. by his supporters.

Buterin defends the Proof-of-Stake before the merger.

Debates over whether blockchains should reach consensus through proof-of-work or proof-of-stake have been raging for several years, especially in recent months as Ethereum prepares The Merge to proof of stake. The merger is expected around September 15, after which Ethereum will be secured by validators staking their ETH tokens rather than miners.

Some of Ethereum’s most vocal critics have argued that Proof-of-Stake limits decentralization and allows larger stakeholders to control the network, but Buterin told Smith he thinks such arguments are wrong. “just wrong“. He said critics have “a misconception that proof-of-work and proof-of-stake are governance mechanisms, when in reality they are consensus mechanisms.“In other words, stakers can validate transactions, but they cannot influence the future design of the network.

The criticism of Proof-of-Stake intensified last month after the Treasury Department sanctioned Tornado Cash, leading to arguments that governments may one day try to censor Ethereum. Coinbase CEO Brian Armstrong commented on the matter saying his company would stop staking rather than censor transactions. Buterin has also also spoke stating that he would view compliance with regulatory sanctions as an attack on the network.

Vitalik Buterin also gave some rare insights into the crypto market over the past two years, commenting on the recent bull run that saw the global crypto market capitalization top $3 trillion in November 2021. He admitted it was “surprised the crash didn’t happen sooner” because the manic phases tend to last for a period of a few months before a rapid fall. While he acknowledges that prices are down across the board in 2022, he said crypto “finally feels significantly useful.

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Vitalik Buterin is still destroying Bitcoin and giving it no future!

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