Bitcoin (BTC), the largest cryptocurrency, fails to address its major decentralization threats: zero client diversity, poor “social layer” narrative, exodus of Bitcoin Core devs and lack of censorship-resistance. Meanwhile, Ethereum (ETH) managed to accomplished a battle-tested level of decentralization, investor and advisor Anthony Sassano says.
Bitcoin (BTC) less decentralized than Ethereum (ETH): Opinion
Bitcoin (BTC) looks less decentralizaed than Ethereum (ETH) as of late 2024, due to a complex of reasons. Long-term Ethereum (ETH) advocate Anthony Sassano shares seven observations to prove that the orange coin is losing a decentralization battle to the second crypto.
First of all, Bitcoin Core remains the only mainstream software client for Bitcoin (BTC) full nodes, with no viable alternatives. The two largest mining pools, Foundry and AntPool, require KYC checks for their participants, which creates a potential centralization point.
Also, Bitcoin (BTC) home mining has been unprofitable for too long. Bitcoin’s (BTC) proof of work (PoW) mechanism sees its centralization increasing over time.
In two or three halvings (equal to 8-12 years), Bitcoin (BTC) is set to become easier to attack since its security budget is shrinking.
As covered by U.Today previously, analyst Justin Bons foresees Bitcoin’s (BTC) security budget dropping to critical levels by the years of 2028-2032.
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Bitcoin Core developers are leaving, which is another centralization threat: Sassano says that less than five of them remain active.
ETH/BTC targeting lows yet again
Last but not least, Bitcoin (BTC) has been criticized for a weak “social layer” as “digital gold” remains its only long-term mainstream narrative.
By contrast, Ethereum (ETH) managed to oppose censorship, implemented powerful anti-centralization incentives and is backed by 170+ developers of its ecosystem. With its “tail issuance,” Ether’s tokenomics also look healthier to Sassano.
Also, its fragmented social layer is a platform for free discussion, which makes Ethereum (ETH) more flexible and diverse, the speaker concluded.
In this cycle, Ethereum (ETH) is often criticized for weak price performance against Bitcoin (BTC). On Nov. 21 it touched a multi-year low at around 0.032 BTC per ETH, but slightly recovered to 0.04.
By press time, ETH/BTC is sitting at 0.036.
