Odaily News Justin Drake, a researcher at the Ethereum Foundation, believes that as the issuance of ETH decreases, it will "soon" become an "ultra sound" currency, while Bitcoin will be "eliminated" as it approaches its supply cap of 21 million, a statement that has sparked debate between the two communities.
Drake recently wrote on X that in order for ETH to become "super robust again, either issuance must decrease or destruction must increase. I believe both will happen."
Ethereum's issuance was deflationary after the merger in 2022, but its issuance began to increase in April 2024 after the Dencun upgrade, as the Dencun upgrade reduced fees and total burns on the L2 network.
However, Drake compared the issuance of ETH with that of Bitcoin and found that since the Dencun upgrade, the Bitcoin supply has increased by 655,000, while the Ethereum network has added 462,000 ETH in the same period. At current prices, the former is worth about $63.5 billion, while the latter is only worth $1.25 billion. Drake said: "Today, the supply of BTC is growing by 0.83% per year, 66% faster than ETH."
He also noted that the Bitcoin blockchain’s 21 million supply cap could lead to long-term security risks, as miners’ income comes primarily from block rewards (about 99% in the past week, with only 1% coming from network fees). He added that Bitcoin is vulnerable to security risks because the cost of attacking the network is relatively low.
However, analyst James Check said critics of Bitcoin’s sustainability fail to take into account factors such as energy advances, mining efficiency and economic incentives. He said that if Bitcoin reaches reserve status, high fees are inevitable, similar to the fees institutions pay to safely store gold.
He added that over time, network fees will maintain operating costs, while subsidies have covered capital expenditures. Check also believes that advances in energy, especially nuclear energy and the utilization of waste energy, will reduce mining costs. (Cointelegraph)