The Ethereum vs Bitcoin debate has started up again, with researcher Justin Drake saying that Ether (ETH) is on track to become “ultrasound” money because it is being issued less and less. Conversely, Bitcoin may not be as safe because it is getting close to its 21 million supply limits. His comments have caused heated arguments between the two communities, with people questioning whether each network will be around in the long run. Drake said Ethereum would be “ultrasound” when its generation rate keeps going down, or its burn rate goes up, which he thinks will happen. When the Merge happened in 2022, Ethereum’s supply went down, but when the Dencun upgrade occurred in 2024, it went up. Bitcoin’s supply has grown by 655,000 BTC, which is $63.5 billion. This is growth at 0.83% per year, 66% faster than Ethereum’s growth of 462,000 ETH, which is $1.25 billion.
Bitcoin’s Threats to Security
Drake had significant worries about Bitcoin’s security model because it depends on block payouts, which bring in 99% of the money for miners, while fees only bring in 1%. He says that the network could be at risk for security as block awards go down. This means a 51% attack on Bitcoin could be possible, even though it would cost around $10 billion and need 10 gigawatts of power.
How Strong Bitcoin Is
Analyst James Check responded to these points by saying that people who say Bitcoin isn’t sustainable don’t consider essential things like improvements in energy use, mining efficiency, and economic rewards. He said that if Bitcoin becomes a reserve currency, it will have to pay high fees, like the one’s banks pay to store gold safely.
What’s Next for Bitcoin and Ethereum
Ethereum vs Bitcoin struggle to secure their networks and economies. As Ethereum moves towards a model with less inflation, it must carefully manage the risks and rewards of mining. Also, Bitcoin’s dependence on block awards is a worry, but new developments in mining and energy may make it safe in the long run.
Conclusion
The future of “ultrasound” money is still unclear as the debate continues. Will Ethereum’s deflationary plan be better, or will Bitcoin’s strength and energy improvements keep it in the lead? The crypto world pays close attention to how these two giants change the financial world.
