The debate between Bitcoin (BTC) and Ethereum (ETH) proponents is a classic in the crypto world, and it intensifies when fundamental questions are raised. An Ethereum researcher recently defended the ETH issuance model, which sparked backlash, with some going so far as to accuse the Bitcoin blockchain of being “cooked” (manipulated). This article explores the arguments on both sides, analyzes the differences between the BTC and ETH issuance models, and examines the implications for the security and decentralization of both cryptocurrencies.
Attacking Bitcoin and defending Ethereum
The accusation that the Bitcoin blockchain is “cooked” suggests that there may be manipulation or non-transparent practices in the process of mining or distributing new bitcoins. This accusation, while potentially exaggerated, highlights concerns about the concentration of mining power among a few major players (mining pools), and the potential for 51% attacks that could compromise the security of the blockchain.
In response to these accusations, the Ethereum researcher defended the ETH issuance model, which has evolved over time. After the “Merge”, Ethereum moved from a Proof-of-Work system to a Proof-of-Stake system. This change drastically reduced Ethereum’s energy consumption and changed the way new ETH is issued. The researcher argues that this model is more sustainable and fair than Bitcoin’s.
Bitcoin vs Ethereum: Two Distinct Approaches to Issuance
Bitcoin’s issuance model is characterized by a halving (division by two) every 4 years, halving the reward offered to miners for each validated block. This mechanism aims to create artificial scarcity and control inflation. The total number of bitcoins that will ever be created is limited to 21 million, making it a deflationary asset.
Ethereum’s issuance model, on the other hand, is more flexible and can be adjusted according to the needs of the network. After the Merge, ETH issuance has decreased significantly, and in some circumstances, the supply of ETH can even become deflationary. Unlike Bitcoin, there is no upper limit to the number of ETH that can be created. Ethereum advocates believe that this flexibility allows monetary policy to be better adapted to the needs of the network.
