Bitcoin and Ethereum supporters are once again at each other’s throats. This time, the debate is over which cryptocurrency is more sound money given that BTC’s supply is set at 21 million while ETH’s supply is deflationary.
It all started when an Ethereum supporter Twitter user by the name of ‘ultrasound money’ made a remark on the issuance supply of both cryptos and reasoned that “if capped-supply BTC is sound then decreasing-supply ETH is ultrasound.”
Bitcoin proponents were quick to point out that the integrity of a monetary policy is determined by the legitimacy of a stable one and not that of an ever-changing one, and that the comparison between the two didn’t sit well with them.
Prominent BTC supporter Dan Held chimed in by noting that a policy that is continually shifting loses credibility. He stated:
“Time builds trust with humans, it’s not all about code. According to your logic, if we spun up another crypto with more deflation, that would be “sounder.”
Bitcoiners’ claim that a network’s monetary policy is less trustworthy if it can be changed more than once is based on their own history.
As reported by TronWeekly, Ethereum issuance turned deflationary over the weekend amid a market-wide rally. Its supply growth is rough -0.10% per year with 622,000 ETH issued annually and 739,000 ETH burnt yearly, according to Ultrasound.money data.
ETH has surpassed Bitcoin’s price performance over the past 30 days, rising 34.2%, while BTC increased by 27%.
Bitcoin Supporters Still Oppose To Changes
Similar monetary adjustments and alterations to the original code have previously been made to BTC. The most significant one occurred in 2017 when there was a rising need to increase the size of a Bitcoin block to support more transactions per block and make the system more scalable.
The majority of the Bitcoin community is still opposed to altering Satoshi Nakamoto’s original code in any way.
As a result, the cryptocurrency ecosystem saw a hard fork in 2017, which resulted in the creation of Bitcoin Cash [BCH], a coin with an 8 MB block size as opposed to 1 MB for Bitcoin.
However, BCH is currently trading 97% below its all-time high and is rated 26th with virtually little on-chain development.