One Ethereum-focused Twitter user called “super-money” compared the offering release of both cryptocurrencies and suggested that “if BTC is in limited supply, then diminishing supply of ETH is ultrasound.”
Comparing the two did not sit well with BTC proponents, who quickly pointed out that safety comes from the credibility of monetary policy and is not ever-changing. Dan Held, a well-known Bitcoin proponent, pointed out the flaw in the argument and noted that the constant change is less credible. He said:
“Time builds trust with humans, it’s not just about programming. According to your logic, if we mint another cryptocurrency with more deflation, it will be ‘correct’.
Another Bitcoin proponent has questioned the credibility of Ethereum’s monetary policy, stating that the same monetary policy has “changed at least 11 times in the seven years of its existence.” On the other hand, Bitcoin has not changed its monetary policy once.
The expected historical release rate of Ether. Source: ethhub.io
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Ether became deflationary in August 2021 with the submission of the Ethereum-1559 Improvement Proposal (EIP-1559). The upgrade introduced a burn mechanism that automatically burns a portion of the transaction fee, reducing the total circulating supply of ETH.
In response to Alex Gladstein’s argument that “administrators” can change Ethereum’s monetary policy arbitrarily, independent Ethereum educator Anthony Sasano claimed that every change in the Ethereum network has been approved by thousands of node operators run by community members.
Leo Glisic, founder of Maitri Network, said that ETH is good money now, but BTC won’t hit its ceiling until 2140.
Bitcoin has faced similar monetary changes and modification of the original code in the past. The most notable of these came during 2017 when there was a growing demand to increase the block size of Bitcoin to accommodate more transactions per block and make it more scalable.
Related: Bitcoin Comes Out of “Fear” for the First Time in Nine Months
The majority of the Bitcoin community remained against making any changes to Satoshi Nakamoto’s original code. As a result, the Bitcoin network experienced a hard fork in 2017, which led to the formation of Bitcoin Cash
, which is a 8MB block size cryptocurrency for 1MB of BTC. However, today, BCH has had very little on-chain development and is currently trading at a price drop of 97% from its all-time high.