Bitcoin (BTC) “Store of Value” Narrative Under Scrutiny: Conflicts of Interest and Selling Pressure Threaten its Future
Title: Ethereum Proponent Warns of Bitcoin’s Vulnerabilities as ETH/BTC Rates Plummet
In a recent statement, prominent Ethereum proponent Adriano Feria raised concerns about the future of Bitcoin as a “store of value” due to conflicts of interest in the proof-of-work ecosystem, constant selling pressure, and the vulnerability of miners. Meanwhile, the ETH/BTC rates have dropped to the lowest levels since early April 2021.
Feria highlighted Ethereum’s censorship-resistance, citing a failed attempt by OFAC to implement censorship measures on its transactions. He emphasized that Ethereum’s proof of stake is verifiably censorship-resistant, while Bitcoin’s proof of work is now seen as a bug rather than a feature.
According to Feria, Ethereum’s post-Merge blocks have shown over 58% compliance with OFAC sanctions, rejecting transactions involving designated Ethereum addresses. In contrast, Bitcoin faces challenges such as selling pressure from miners covering expenses and resource-ineffective mining hardware.
The economic model of Bitcoin mining is also struggling as price appreciation slows down, making halving events less attractive to new investors. On the other hand, Ethereum remains net deflationary post-Merge, providing stable yield for long-term holders of Ether.
Despite the drop in ETH/BTC rates to 0.03628, major tech companies like Sony and Samsung, along with crypto giants Coinbase and Kraken, are still betting big on Ethereum. Layer-2 scaling mechanisms on Ethereum are pushing network performance boundaries, while Bitcoin’s Lightning Network remains less accessible to the majority of users.
While Ethereum’s price performance in the current cycle has caused pessimism among investors, the interest from industry giants and continued development of scaling solutions indicate a strong future for the Ethereum network.
