Bitcoin (BTC) and Ether (ETH) are the top two cryptocurrencies by market capitalization and are constantly competing with each other. With the start of the new year, the first debate has surfaced comparing BTC’s 21 million capped supply to ETH’s deflationary supply and which of the two qualifies as the healthier money.
An Ethereum-focused Twitter handle dubbed “Ultrasound Money” compared the issuance supply of both cryptos, suggesting “if capped supply BTC is healthy, supply decline ETH is sonic.” bottom.
When capped supply BTC is healthy
Declining supply ETH is super healthy pic.twitter.com/L2tsFzPQ7q
— Ultra Sound Money (@ultrasoundmoney) January 15, 2023
The comparison between the two was not well received by Bitcoin supporters who were quick to point out that soundness comes from the credibility of monetary policy and not from constant change. Dan Held sharp Pointing out the flaws in the argument, he pointed out that the ever-changing argument was unreliable.
“Time builds trust with humans. It’s not just code. By your logic, spinning up another crypto with more deflation makes it ‘healthier’.”
another bitcoin advocate Asked Ethereum’s monetary policy credibility reminds us that the same monetary policy has been “changed at least 11 times in its seven-year existence.” Bitcoin, on the other hand, has not changed its monetary policy for twice as long as eth has existed.
The introduction of the Ethereum Improvement Proposal (EIP) – 1559 put Ether into deflation in August 2021. This upgrade introduced a burn mechanism that automatically burns a portion of transaction fees, reducing the overall circulating supply of ETH.
In response to Alex Gladstein’s assertion that “administrators” can arbitrarily change Ethereum’s monetary policy, independent Ethereum educator Anthony Sasano said that all changes on the Ethereum network must be made by community members. It claimed to be endorsed by thousands of node operators in operation.
The term “administrators” means that there is a small group with superuser powers that can change things on Ethereum, which is completely false and has been proven false many times.
You can believe what you want about the healthy money vs. super healthy money debate.
—sassal.eth (@sassal0x) January 16, 2023
Maitri Network Founder, Leo Glisic Said That ETH is now sound money, but BTC won’t hit the cap until 2140.
Bitcoiner’s claim that credibility would erode if the network’s monetary policy could be tweaked many times stems from its own past. Bitcoin has faced similar currency changes and tweaks to its original code in the past. Most notably, in the 2017 era, the demand for larger Bitcoin block sizes increased in order to increase the number of transactions per block and increase scalability.
Related: Bitcoin Comes Out Of “Fear” For First Time In Nine Months
Most of the Bitcoin community opposed changing Satoshi Nakamoto’s original code. As a result, the crypto ecosystem experienced a hard fork in 2017 to form Bitcoin Cash (BCH), a cryptocurrency with a block size of 8 MB compared to BTC’s 1 MB. However, today BCH ranks 26th with very low on-chain development, currently trading 97% below its all-time high.
