Ethereum cannot be compared to Bitcoin as money: Tether CTO

Paulo Arduino, chief technology officer (CTO) of Bitfinex and Tether, recently commented on the interest of Ether as money, following the merger.

The CTO believes that the cryptocurrency cannot compete with Bitcoin as a form of money, due to design choices that prioritize other goals.

Bitcoin is money. Ether is not

As CTO . said Crowfund from within On Tuesday, Ethereum “stuck between claims that it is a form of money and claims that it is a platform.”

It is also written in a file White papersEthereum was designed as an “alternative protocol for building decentralized applications” that Bitcoin was not well suited to supporting. From smart contracts to stablecoins, to non-fungible tokens (NFTs), all transactions in the ecosystem are powered by Ether – the second largest cryptocurrency today.

More recently, some have also called Ether “too hot money” because of what its token structure will look like after the merger. Its transaction burning mechanism combined with a significant drop in ETH per block will make it efficient net deflationary currency.

This could theoretically put it in competition with Bitcoin – a cryptocurrency known as Long-term inflation protection due to fixed width. However, Arduino thinks there’s more to the story:

He explained, “ETH cannot compete with Bitcoin on the monetary front because there is no fixed supply, and it is not a truly global computer yet because it has a common global state and is therefore too slow to scale.”

The CTO added that the merger will not fix the relatively high Ethereum transaction fees (something that Ethereum developers have confirmed), and will not make Ethereum more decentralized.

Indeed, concerns are growing about the high concentration of Ethereum 2.0 stocks in the hands of central equity providers. Lido, Coinbase, Binance and Kraken together control more than 60% of the shares and are all OFAC compliant entities.

Some believe that these circumstances may lead the government to force these entities to censor the Ethereum chain with its overwhelming stake. However, the CEO of Coinbase has to reject That his company would likely do something like this.

Overall, Ardoino believes that the merger will not solve network congestion and therefore will not make Ethereum more useful as a cash network.

“The truth is Bitcoin is the only asset that has a strong story, one that hasn’t changed,” he said. “Ethereum is still no match for Bitcoin as its story continues to change.”

Too many goals

Former BitMEX CEO Arthur Hayes introduced one similar take last week. He said that Ether could not be cash because it already served as a gas token for Ethereum. However, Bitcoin serves a relatively little purpose other than trading.

He said, “For this reason it is a good form of money, because its value cannot be confused with the actual utility of other things.”

Hayes added that Ethereum may have to change Ether’s monetary policy in the future if deflation becomes “too severe.” In other words, the high transaction fees required for such a downturn could deter users looking for a cheap and usable network.

Shark Tank star Mark Cuban same point During an interview about the merger last month. “If the usage goes up and the value of the token goes up, the cost of doing something goes up,” he explained. “So you have these two competing interests.”

Beyond Ethereum Cannot Be Compared To Bitcoin As Money: Tether CTO appeared first on CryptoPotato.

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