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The Coin Rise 2025-02-10 10:52:28

Ethereum vs. Bitcoin: Justin Drake Declares BTC ‘Cooked,’ Sparks Industry Debate

Ethereum Foundation researcher Justin Drake has reignited the longstanding rivalry between Ethereum and Bitcoin, arguing that Bitcoin’s security model is unsustainable as it approaches its 21 million supply cap. In contrast, he believes Ether (ETH) will soon become “ultra sound” money due to decreasing issuance and increasing burns. Security Risks In a February 5 X post, Drake pointed out that Bitcoin’s supply grows at 0.83% per year, which is “66% faster than ETH.” He warned that Bitcoin’s fixed supply model could lead to long-term security vulnerabilities, as miners rely predominantly on block rewards rather than network fees. He claimed that Bitcoin could be susceptible to a 51% attack at a cost of roughly $10 billion and access to 10 gigawatts of power, describing the scenario as “peanuts for nation-states.” Ethereum educator Anthony Sassano echoed Drake’s concerns, stating that Bitcoin proponents fail to see the looming threat. Drake contrasted Bitcoin’s growth with Ethereum’s post-Merge deflationary model, noting that Bitcoin added 657,000 BTC to its supply since the 2024 Dencun upgrade , while Ethereum’s supply increased by just 469,000 ETH during the same period. Bitcoin Community Pushes Back Despite the warnings, some analysts defended Bitcoin’s long-term sustainability. James Check, an analyst, argued that critics overlook advancements in energy sources, mining efficiency, and economic incentives. Check explained that high fees, similar to costs for securely storing gold, would eventually sustain Bitcoin’s operational expenses. He emphasized that bankrupt miners selling ASIC rigs at lower prices allow new players to enter, maintaining the network’s security. The analyst also highlighted Bitcoin’s role in stabilizing energy grids through demand response, reducing maintenance costs for grid operators. He suggested that some grids may find it efficient to mine Bitcoin even at a loss. “Justin [Drake] is claiming that plugging in and running a small country’s worth of power is a cheap and easy exercise,” said Check. “One cannot begin to quantify how unserious this claim is.” Drake acknowledged that Ethereum has its own challenges , including systemic risks from liquid staking platforms like Lido and excessive staking incentives that compromise ETH as pristine collateral. He proposed a “Croissant Issuance” model to stabilize supply, which would cap annual issuance at 1% and drop it to zero once 50% of ETH is staked. The post Ethereum vs. Bitcoin: Justin Drake Declares BTC ‘Cooked,’ Sparks Industry Debate appeared first on TheCoinrise.com .

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