Ethereum Foundation researcher: ETH will become a super-robust currency, while Bitcoin will eventually be hindered by its supply cap

Odaily Planet Daily News: Justin Drake, a researcher at the Ethereum Foundation, believes that as ETH issuance decreases, it will "soon" become an "ultra sound" currency, while Bitcoin is "eliminated" as it approaches a supply cap of 21 million, a statement that has sparked debate between the two communities. Drake recently posted on X that to make ETH "ultra sound 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 the fees and total destruction of the L2 network. However, Drake compared ETH's issuance with Bitcoin's issuance and found that Bitcoin supply has increased by 655,000 since the Dencun upgrade, while the Ethereum network has increased by 462,000 ETH during the same period. At current prices, the former is worth about $63.5 billion, while the latter is worth only $1.25 billion. Drake said: "Today, BTC's supply grows 0.83% per year, 66% faster than ETH." He also pointed out that the 21 million supply cap of the Bitcoin blockchain could lead to long-term security risks, as miners' income mainly comes from block rewards (about 99% in the past week, and only 1% comes from network fees). He added that Bitcoin is vulnerable to security risks due to the relatively low cost of attacking the network. However, analyst James Check said that critics of Bitcoin's sustainability fail to take into account factors such as energy progress, mining efficiency and economic incentives. He said that if Bitcoin reaches reserve status, high fees are inevitable, similar to the fees that institutions pay to safely store gold. He added that over time, network fees will maintain operating costs, and subsidies have covered capital expenditures. Check also believes that energy advances, especially nuclear energy and the utilization of waste energy, will reduce mining costs. (Cointelegraph)