On September 1, Vitalik Buterin affluent an entrevue to economics author Noah Smith and co-founder of Ethereum who talked a lot emboîture Bitcoin and long-term network security. Buterin also discussed the collapse of the cryptocurrency economy and said he was “surprised that the écrasement did not happen before.”
Buterin: Bitcoin ‘doesn’t manage to get the level of fee revenue needed to secure what could be a multibillion dollar system’
Vitalik Buterin, co-founder of Ethereum, recently made a an interview With the author of Economics Noah Smith Buterin had a lot to say emboîture the current state of cryptocurrency. Smith first asked Buterin emboîture his thoughts on the recent cryptocurrency écrasement, and Buterin said he believed it would soon collapse.
“I was surprised that the malchance had not happened before,” Buterin said during the entrevue. “Cryptocurrency bubbles usually last emboîture 6-9 months after passing the previous peak, after which the rapid decline comes very quickly. This time around, the bull market lasted emboîture a year and a half,” the developer added.
Buterin also talked a lot emboîture Bitcoin (BTC) Network and The Merge, Ethereum’s highly anticipated modification from Proof of Work (PoW) to Proof of Stake (PoS). He claims Bitcoin doesn’t cut it when it comes to fees for revenue from block béquille.
“In the grandiose run, securing Bitcoin will come entirely from fees, and Bitcoin is not succeeding in getting the level of fee revenue required to secure what could be a multibillion dollar system,” Buterin said.
When Smith asked Buterin emboîture Bitcoin’s energy use, the Ethereum co-founder noted that PoS would not only reduce harm to the environment, but also be emboîture keeping the blockchain secure.
“A unanimité system that needlessly costs huge amounts of electricity is not only bad for the environment, but also requires the apparition of hundreds of thousands of BTC or ETH Every year, Buterin stressed. “Eventually, of voyage, the issuance will drop to near zero, at which pixel the problem will suffisamment, but then Bitcoin will start to deal with another problem: how to make sure it stays safe.” Buterin added:
And these security drivers are also a really hautain driver behind Ethereum’s move to proof-of-stake.
Ethereum co-founder insists early Proof of Work era is ‘unsustainable and won’t return’
Buterin understands that Bitcoin won’t ravagé its unanimité mechanism, at least for now, but if the chain comes under attack, he thinks querelle of the hybrid PoS algorithm could play a role.
“Of voyage, if Bitcoin is actually attacked, I would expect the political will to switch to at least a hybrid proof of stake quickly, but I expect it to be a painful modification,” the logiciel developer told Smith. The Ethereum co-founder said he believes that people have a misconception emboîture PoS, which gives the largest stakeholders control of the network.
“There are also people trying to claim that POS allows big stakeholders to control the protocol, but I think these arguments are completely wrong,” Buterin said. “They are based on the misconception that Proof of Work and POS are governance mechanisms, when in fact they are unanimité mechanisms. All they do is help the network agree on the right chain.”
Buterin continued by noting that he thinks the early manière of PoW was a good starting pixel, but for the time being he thinks it’s old, it’s on its way out the door, and likely won’t come back.
The very democratic Proof-of-Work era was a beautiful thing early on, and it greatly helped make cryptocurrency ownership more egalitarian, but it is not sustainable and does not return.
What do you think of Vitalik Buterin’s comments on the crypto écrasement, the Bitcoin network, and PoW vs. PoS? Tell us what you think emboîture it in the comments bout below.
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