Vitalik Buterin, a co-founder of Ethereum, Talks About the Long-Term Security of Bitcoin

 The co-founder of Ethereum, Vitalik Buterin, spoke extensively on Bitcoin and the network's long-term stability in an interview he gave to economics author Noah Smith on September 1. Buterin talked about the collapse of the cryptocurrency market and expressed his surprise that it had not happened sooner.

Source:https://bit.ly/3D2BEjg

Bitcoin "Is Not Succeeding at Getting the Level of Fee Revenue Required to Secure What Could Be a Multi-Trillion-Dollar System," according to Buterin.

In a recent interview with the economist Noah Smith, Ethereum co-founder Vitalik Buterin discussed the state of cryptocurrencies in great detail. When Smith first questioned Buterin about his opinions on the most recent cryptocurrency crash, Buterin said that he believed it would have crashed sooner.

Buterin stated in the interview, "I was astonished that the crash did not happen earlier. "Typically, crypto booms peak and then decline rapidly within 6 to 9 months of exceeding the prior high. This time, the bull market continued for almost a full year and a half," the developer continued.

The Bitcoin (BTC) network and The Merge, Ethereum's much-anticipated switch from proof-of-work (PoW) to proof-of-stake, were two other topics Buterin covered in great detail (PoS). He asserts that when it comes to fee income from block subsidies, Bitcoin falls short.

According to Buterin, "Bitcoin security is going to be totally funded by fees in the long run, and Bitcoin is just not succeeding at generating the sort of fee money required to safeguard what may be a multi-trillion dollar system."

When Smith inquired about the energy consumption of Bitcoin, Buterin responded that PoS will not only lessen environmental damage but also maintain the security of the blockchain. Buterin is the co-founder of Ethereum.

Buterin emphasized that a consensus system that wastefully consumes large amounts of electricity is not only harmful for the environment but also necessitates the annual issuance of hundreds of thousands of BTC or ETH. Eventually, of course, the issuance will go to almost zero, at which point it won't be a problem anymore, but at that point, Bitcoin will have to start focusing on another problem: how to maintain its security. Howevern added:

And the shift by Ethereum to proof-of-stake is also largely motivated by these security concerns.

The co-founder of Ethereum asserts that the early Proof-of-Work era is "unsustainable" and "not coming back."

Buterin is aware that, for the time being as least, Bitcoin won't alter its consensus algorithm, but he thinks that if the chain were attacked, the concept of a hybrid PoS algorithm may become relevant.

The political will to migrate to at least hybrid proof of stake will undoubtedly materialize if Bitcoin is actually attacked, but I anticipate that it will be a hard transition, the software developer told Smith. The co-founder of Ethereum stated that he believes the popular misconception that PoS gives the largest stakeholders network control is incorrect.

People have also attempted to argue that PoS allows major stakeholders to control the protocol, but Buterin argued that such claims are demonstrably false. They are based on the fallacy that PoW and PoS are consensus procedures, whereas in fact they are governance systems. They merely assist the network in selecting the proper chain.

Buterin went on to say that while he feels the original PoW was a fine starting point, he now sees it as outdated, on its way out, and probably never coming back.

Although the highly democratized early proof-of-work era was wonderful and greatly aided in increasing the equality of bitcoin ownership, it is unsustainable and will not last.

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