The post Ethereum Researcher Justin Drake Suggests Decreasing ETH Issuance May Lead to Long-Term Questions for Bitcoin’s Supply Cap appeared on BitcoinEthereumNews.com.

Ethereum’s evolving monetary policy is sparking debate among crypto enthusiasts, as researcher Justin Drake predicts a transition to “ultra sound” money for ETH. The conversation intensifies as Drake highlights Bitcoin’s looming supply cap, raising concerns over its future viability as a secure network. Drake noted, “The Bitcoin blockchain is cooked,” suggesting that the supply cap might lead to significant security vulnerabilities in the network. Ethereum’s evolving issuance model positions ETH as “ultra sound” money, raising concerns about Bitcoin’s supply cap and future security risks. Ethereum’s Path Toward Deflationary Issuance Ethereum’s monetary policy is undergoing a significant transformation, driven by its recent upgrade cycle and the increased discussion around its issuance rates. According to Justin Drake, one of the leading researchers at the Ethereum Foundation, Ether’s (ETH) issuance will soon come under tighter control, enhancing its prospects as a reliable store of value. Following the successful Merge in September 2022, Ethereum has entered a phase of deflationary issuance, meaning that the total supply of ETH is gradually decreasing. However, after the Dencun upgrade implemented earlier this year, there has been a slight uptick in the issuance, but Drake believes that both the burn rate and the issuance will balance out to favor a healthier ecosystem for ETH. Bitcoin’s Supply Cap and Security Risks Drake’s commentary on Bitcoin is particularly noteworthy as he raises alarms about the long-term implications of Bitcoin’s rigid supply cap of 21 million coins. He argues that the lack of new supply generated through mining rewards could jeopardize the network’s security model. which traditionally relies on miners’ block rewards for income. “Today BTC supply grows 0.83% per year, 66% faster than ETH,” he explained, highlighting the inherent differences in how both networks scale their supply. Drake posits that this disparity could lead to a decreased incentive for miners,…

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Filed under: News - @ February 10, 2025 4:16 am