Ethereum researcher Justin Drake theorizes that ETH supply will be diminished to the point that money is “ultra sound.” Since Ethereum’s Dencun upgrade in April 2024, Bitcoin has added 657,000 BTC to its supply, with Ethereum adding only 469,000 ETH, he explains. New Bitcoin value transacted over the last month: US$63.4B vs only US$1.23B new Ethereum supplies.
Drake also states that Bitcoin supplies are increasing 0.83% a year, which is 66% higher than Ether. As Ethereum mints less ETH and more ETH is burned via transaction fees, he thinks it will become increasingly valuable over time.
Is Bitcoin Safe for the Future?
Bitcoin leads with a $2.01T market cap, dwarfing Ethereum's $472.44B. Yet, Ethereum dominates NFTs with a $37.64B market vs. Bitcoin's $725M (projected $4.5B by 2025). Security vs. adoption—who will shape the future? 🤔 #Bitcoin #Ethereum #NFTs #Crypto pic.twitter.com/i5BxZIo487
— Dg007 (@ztruth007) December 14, 2024
Drake also challenges the long-term security of bitcoin. Today, 99% of the income for Bitcoin miners comes from new block rewards and only 1% of it comes from transaction fees. But since Bitcoin has a capped total supply of 21 million coins, block rewards will run out eventually. At that time, Bitcoin will have to be absolutely dependent on transaction fees only to secure the network.
Drake cautions that this will leave Bitcoin open to assault.He estimates that executing a 51% attack on Bitcoin would cost $10 billion and at least 10 gigawatts of power, which given the immense wealth of the big governments is by all means capable to do.
Well, Bitcoin analyst James Check disagrees. He makes the case that Bitcoin’s security should hold up thanks to advances in mining technology as well as cheaper energy sources, like nuclear power. He his actually compares Bitcoin farming to storing gold, and that the institutions will pay larger fees to store their Bitcoin safe.Check believes that Bitcoin mining can help balance energy grids by managing power demand. Drake also believes that too much staking will make ETH weak as a asset and that platforms like Lido, which allow for liquid staking, can create risks.
