Vitalik Buterin, founder of the company Ethereum (ETH) Network, yesterday spoke in an interview about Bitcoin (BTC). According to Buterin, bitcoin has certain fundamental characteristics that mean the future may not look very bright for the crypto king.
Buterin attacks Bitcoin
In the Interview with Economist Noah Smith He cites two reasons why he believes Bitcoin will be in trouble in the future. First of all, that’s it proof of work (PoW) The consensus model on which the Bitcoin network operates. According to Buterin, the system that regulates transaction costs is also deficient.
Bitcoin is currently splitting new BTC between Miners As a payment to secure the network but because the network is difficult Stock limit 21 million Ultimately, the network will have to rely solely on transaction fees for security. Buterin told Smith that this was a problem. After all, at some point there will not be any new bitcoins.
The Bitcoin protocol currently generates around $225,000 in transaction costs per week. According to Buterin, this is not close enough to secure a network of Bitcoin network pedigree. In comparison, the Ethereum network generates about $2.7 million in transaction costs per week.
proof of stake
The other point is the fact that Bitcoin is, and most likely will remain, proof of work. Ethereum currently, but will convert to . On September 15th, so in about two weeks proof of stake (PoS) during a much-anticipated period to merge.
The network does not have proof of stake Miners necessary to secure the network. Instead, it will be done through He hits to treat is happening. Because mining has become a thing of the past, the power consumption of the network will decrease, according to some studies, even by 99.95%! This is of course very useful at a time when governments view unnecessary energy consumption with suspicion.
Buterin also spoke briefly about the current market situation in the interview. According to him, a major accident was foreseen at some point. He expected this to happen much sooner:
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