Vitalik Buterin is one of the biggest names in the cryptocurrency market, being the creator of Ethereum, the second largest cryptocurrency by market capitalization. He recently spoke about his concerns about the future of Bitcoin, while also discussing the future of Ethereum. In a interview this Friday (2) with Noah SmithVitalik said that he is concerned about the future of Bitcoin, more specifically in relation to the cryptocurrency’s fee model and the Proof-of-Work consensus, which he says may leave Bitcoin vulnerable to attacks in the long run.
Buterin’s fears about Bitcoin
During his interview, the creator of Ethereum said that he is “worried about Bitcoin for two reasons”. The first, he explained, is precisely the fee model used by the network, including the reward payment system for miners and the halving. Buterin argues that since the protocol has a supply limit of 21 million coins, eventually the network will rely solely on transaction fees to maintain security.
“Bitcoin is not achieving the level of fee revenue needed to secure what could be a multi-billion dollar system.”
Buterin’s idea is that in the future, the fees that Bitcoin pays to miners will no longer be enough, which will cause miners to lose interest in mining the coin and thus the optimal hash rate for which security will be affected.
Vitalik is also worried about proof of work
Vitalik also talked about Proof of Work, bitcoin’s consensus algorithm. For the creator of Ethereum, this algorithm offers much less security per dollar spent compared to proof of stake. He claims that it would be problematic to have a $5 trillion network that only costs $5 billion to carry out an attack. Buterin also noted that Bitcoin’s exit from Proof-of-Work would be politically unfeasible, keeping the network “stuck” on this type of consensus algorithm.
Bitcoin Attacks By Buterin Are On The Rise As Ethereum Plans Its Upgrade. Ethereum will go from a proof-of-work network to a proof-of-stake network, so it is more than interesting that Buterin talks about the many “flaws” of Bitcoin, as this would justify this protocol change. With that, it is important to be attentive to what you say and know how to filter valid criticism from the noise of self-promotion.
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