ETH Foundation researcher: ETH will become a super stable currency, while BTC will ultimately be hindered by its supply limit.

Odaily Planet Daily News ETH Fund researcher Justin Drake believes that as the supply of ETH decreases, it will soon become an “ultra sound” currency, while BTC will be “eliminated” as it approaches the supply limit of nearly 21 million, sparking debate between the two communities. Drake recently posted on X, stating that to make ETH “super stable again, either the supply must be reduced or the amount destroyed must be increased. I believe both will happen.” The issuance of Ether (ETH) experienced deflation after the merger in 2022, but its issuance started to increase in April 2024 after the Dencun upgrade, as the upgrade reduced the cost and total destruction of the L2 network. However, Drake compared the issuance of ETH to that of BTC and found that since the Dencun upgrade, the BTC supply has increased by 655,000 coins, while the Ethereum network has added 462,000 ETH coins 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 is growing at 0.83% per year, which is 66% faster than ETH’. He also pointed out that the 21 million supply limit of the BTC blockchain could lead to long-term security risks, as miners’ income mainly comes from block rewards (which accounted for about 99% in the past week, with only 1% coming from network fees). He added that due to the relatively low cost of attacking the network, BTC is easily vulnerable to security risks. However, analyst James Check has pointed out that critics of Bitcoin’s sustainability have failed to consider factors such as energy efficiency, mining efficiency, and economic incentives. He mentioned that if BTC reaches a reserve status, high costs are inevitable, similar to the fees institutions pay for secure storage of gold. He added that over time, network fees will cover operational costs, while subsidies have already covered capital expenditures. Check further believes that advances in energy, especially the use of nuclear energy and waste energy, will reduce mining costs. (Cointelegraph)