Ethereum Foundation researcher Justin Drake recently sparked a debate between the Ethereum and Bitcoin communities with bold claims about the future of Ether (ETH). In a February 5 post on X, Drake argued that ETH would soon become “ultra sound” money due to decreasing issuance, while Bitcoin (BTC) is “cooked” as it approaches its 21 million supply cap.
My bat signal 🦇🔊 will return when ETH is ultra sound again, soon enough™.
— Justin.eth Drake (@drakefjustin) February 5, 2025
ETH supply currently grows 0.5%/year. That's 1%/year of issuance minus 0.5%/year of burn. To become ultra sound again, either issuance has to decrease or the burn has to increase. I believe both will… pic.twitter.com/5TsAowD2jA
Drake pointed out that for Ether to truly become “ultra sound,” its issuance must decrease or the burn rate must increase. He believes both will occur. Ethereum, which became deflationary following the 2022 Merge, saw a shift after the Dencun upgrade in April 2024. The upgrade reduced layer-2 network fees, leading to a reduction in overall ETH burned. However, it also resulted in an increase in ETH issuance.
Drake’s analysis revealed that, since the Dencun upgrade, Bitcoin’s supply grew by 657,000 BTC (worth approximately $63.4 billion), compared to 469,000 Ether (valued at $1.23 billion). He also highlighted that Bitcoin’s annual supply growth rate stands at 0.83%, 66% faster than Ethereum’s current rate.
Drake raised concerns about Bitcoin’s long-term security, noting that miner revenue comes mainly from block rewards, which could be vulnerable once the 21 million BTC cap is reached. The potential for lower security risk as block rewards decrease has led to increasing criticisms from Ethereum supporters.
Bitcoin proponents, however, argue that the criticism overlooks key factors such as mining efficiency and technological advancements in energy use. Analyst James Check told Cointelegraph that Bitcoin could remain secure long-term due to the profitability of mining through lower-cost energy sources and advancements like nuclear power.
Also Read: Ethereum Price at a Crossroads: Whale Sell-Offs Clash with Retail Buying Surge
While both ecosystems face challenges, including Ethereum’s issues with staking incentives and potential risks from liquid staking platforms like Lido, the debate about the future of these two cryptocurrencies remains complex and ongoing. As the crypto space evolves, it’s clear that both ETH and BTC will continue to spark heated discussions about their paths to becoming the money of the future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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