Ethereum Can’t Compare to Bitcoin as Money – Tether CTO:
The Cheif Technology Officer (CTO) at Bitfinex and Tether –Paulo Ardoino- has recently commented on Ether’s use case as money.
He believes that Ethereum cannot be compared to Bitcoin as a form of money, due to its nature that have prioritized other objectives.
As the CTO disclosed to Crowfund Insider on Tuesday, Ethereum is
“stuck between claims of being a form of money and claims of being a platform.”
As cited in the second biggest cryptocurrency whitepaper, Ethereum was created as an “alternative protocol for building decentralized applications” that Bitcoin wasn’t well suited to support.
Ethereum has been powering different big blockchain services – from smart contracts to stablecoins, and to non-fungible tokens (NFTs).
Recently, some people now call Ether “ultrasound money” viewing it from the token structure after merge.
Ethereum being a net-deflationary currency after transaction burn mechanism coupled with a substantial decrease in ETH per block will effectively make it a competitor to Bitcoin – a cryptocurrency well-renowned as long-term inflation hedge due to its fixed supply.
Nevertheless, Ardoino thinks there’s more to the story:
“ETH cannot compete with Bitcoin on the money front because there is no fixed supply, and it isn’t really a world computer yet because it has a shared global state and hence too slow to be scalable,” he explained.
In addition, the CTO said that the Merge will not fix Ethereum’s relatively high transaction fees (as confirmed by Ethereum developers), nor will it make Ethereum any more decentralized.
Indeed, massive concerns have be raised over the high concentration of Ethereum 2.0 stake in the hands of centralized exchanges and token provided.
For instance, Lido, Coinbase, Binance, and Kraken collectively control over 60% of stake, and are all OFAC-compliant entities.
With this, people feel circumstances could lead to the government compelling these entities to censor the Ethereum chain using their large stake positions.
However, Coinbase’s CEO has denied that his company wouldn’t do such a thing.
Nevertheless, Ardoino believes that the Merge will not resolve network congestion on the Etheruem network, and therefore not make Ethereum any more useful as a monetary network.
“The fact of the matter is that Bitcoin is the only asset out there that has a solid narrative, one that hasn’t changed,” he said. “Ethereum still doesn’t match Bitcoin because its narrative keeps shifting.”