Bitcoin's PoW Is Bug, Not Feature, Here's Why
10/26/2024 20:45
Despite terrible ETH/BTC underperformance in this cycle, Bitcoin (BTC) has to deal with more dangerous monetary roadblocks, expert Adriano Feria says
Bitcoin (BTC) "Store of Value" narrative might be on borrowed time due to conflicts of interest in the proof-of-work ecosystem, constant selling pressure and the vulnerability of miners, prominent Ethereum (ETH) proponent Adriano Feria says. Meanwhile, ETH/BTC rates dropped to the lowest levels since early April 2021.
Bitcoin (BTC) flawed by selling pressure and conflicts of interest: Opinion
Ethereum (ETH) proved its censorship-resistance as OFAC failed to properly implement censorship measures on its transactions. Such statement was shared by DeFi researcher and long-term Ethereum (ETH) supporter Adriano Feria on his X.
— AdrianoFeria.eth 🦇🔊 🛡️ (@AdrianoFeria) October 25, 2024$ETH's proof of stake is censorship resistant. This is not up for debate anymore, it's a verifiable fact. OFAC has attempted to censor transactions and it failed. Period. End of story.
With that in mind, $BTC's PoW and is no longer a feature, it's a bug. It creates tons of…
Meanwhile, as per automated trackers of MEV effects and OFAC sanctions in Ethereum, over 58% of post-Merge blocks were OFAC-compliant, i.e., were rejecting transactions involving designated Ethereum (ETH) addresses.
At the same time, Bitcoin (BTC), the largest cryptocurrency, is facing more dangerous challenges, Feria admits. BTC as an asset will always be facing selling pressure from miners interested in covering their expenses. Also, sophisticated mining hardware cannot be transferred easily, which makes the entire ecosystem resource-ineffective.
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Also, the economic model of Bitcoin (BTC) mining struggles as price appreciation slows down, and the bullish momentum of halving events become too weak to attract new investors.
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By contrast, Ethereum (ETH) stays net deflationary post-Merge, and still brings stable yield for long-term holders of Ether.
Despite pale ETH dynamics, giants still betting big on Ethereum (ETH)
Also, Layer-2 scaling mechanisms, including various classes of rollups, are pushing the barriers of Ethereum (ETH) network performance, while Bitcoin's Lightning Network remains exotic for the vast majority of Bitcoiners.
That's why real-world tech majors like Sony and Samsung together with crypto heavyweights Coinbase and Kraken are exploring rollup and appchain solutions on Ethereum's L2s.
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It should be noted that Ethereum's (ETH) price performance in this cycle causes strong pessimism among investors.
The ETH/BTC rate dropped to 0.03628, as per TradingView's data. This is the lowest level in more than three and a half years, since the first week of April 2021.