Ethereum Could Be More Secure And Decentralized Than Bitcoin Due To Its Low Issuance Rate
In the recent past, Bitcoin’s has witnessed an explosive growth and surge with its value increasing by more than 200 percent in a year and at the moment trading close to the $12,000 mark.
Despite the phenomenon price hike, different crypto enthusiasts are of the view that Bitcoin could fail to meet the market expectations and other cryptos like Ethereum are poised to take over as the most useful crypto in the market. These views have again been voiced by various Ethereum believers. This time they are comparing the issuance rates of the two most popular cryptos and how this will impact the crypto space in the world. The forecasted Ethereum issuance rate indicates that by the end of August 2021, the issuance rate would be flatline in order to enable different updates to be encompassed in the given supply ETH tokens, AMB CRypto reports.
By August 2021 ETH tokens supply is estimated to stabilize at 115 million which will be superior than Bitcoin’s rate of 21 million. The expected Ethereum 2.0 plans to have a lower issuance rate than that of Bitcoin which will make the crypto more secure and decentralized. Ethereum’s co-founder, Joseph Lubin had indicated in earlier date that Ethereum 2.0 will become more important compared to any other initiative in the world.
According to an Ethereum worshipper known as Token State tweeted about Ethereum’s issuance rate saying:
“Nope Vitalik just can’t change issuance w/o community consensus. Bitcoin will faces sustainability crises if economic model is not adjusted. Needs major overhaul to be secure & sustainable.”
Proof of Stake [PoS] Vs.Proof of Work [PoW]
This argument by the Ethereum community is linked to the benefits brought by Proof of Stake [PoS] networks compared to Proof of Work [PoW] networks. After the issuance rate is stable and Ethereum 2.0 is released, any ETH token holder will be free to join a staking pool so as to help secure the network and in the process earn returns. According to the proposed plan, any user holding 32 ETH tokens will be able to run a full validator within the Ethereum platform. The process will comply with Byzantine Generals rule which in turn will make the platform even more decentralized.
In addition, supporters have also claimed that the Ethereum network is much younger compared to Bitcoin yet it is now the second biggest cryptocurrency in the world. Supporters argue that its strength will only be realized after the PoS model for networks take shape.
Do you believe Ethereum will overtake Bitcoin as the most useful cryptocurrency in the world? Share your thouths with us in the comments section.