Bitcoin vs Ethereum: Community split between capped supply and deflationary model
As the cryptocurrency industry continues to grow, debates around its most established assets, Bitcoin and Ether, have been a hot topic of discussion among tech-savvy crypto enthusiasts. With both of these digital assets having been around since 2009 and 2015, respectively, they have been compared in many ways.
One of the most prominent debates has been around their respective monetary policies. Bitcoin proponents have argued that Ether’s monetary policy has changed at least seven times since its inception, while Bitcoin’s has seen zero changes. This has led many to question the stability of Ether’s monetary policy, and whether it is suitable for widespread adoption.
It is important to note that the monetary policies of both Bitcoin and Ether are quite different. Bitcoin’s monetary policy is hard-coded into the protocol, meaning it cannot be changed. This is a result of the decentralized nature of Bitcoin, as it is not controlled by any one entity. On the other hand, Ether’s monetary policy is managed by the Ethereum Foundation, which is a centralized entity. This allows the Ethereum Foundation to make changes to the monetary policy as they see fit.
The argument that Bitcoin’s monetary policy is more stable than Ether’s is understandable. After all, it is impossible for any entity to make changes to Bitcoin’s monetary policy. This has made it a more reliable asset for those looking for a store of value.
However, it is also important to note that the Ethereum Foundation has taken steps to ensure that changes to the monetary policy are made in a responsible manner. For example, they have implemented a “consensus mechanism” which requires that any changes to the monetary policy must be approved by a majority of the Ethereum Foundation’s members. This helps to ensure that any changes are made in a transparent and responsible manner.
Ultimately, the debate around the monetary policies of Bitcoin and Ether is likely to continue for some time. While Bitcoin’s monetary policy is more stable, Ether’s ability to make changes to its monetary policy may be beneficial in the long run. As the cryptocurrency industry continues to evolve, it is important to keep an open mind and consider the pros and cons of both of these digital assets.