Bitcoin Less Decentralized Than Ethereum: Seven Points by Community
2024-12-30
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Bitcoin BTCUSD, the largest cryptocurrency, fails to address its major decentralization threats: zero client diversity, poor "social layer" narrative, exodus of Bitcoin Core devs and lack of censorship-resistance. Meanwhile, Ethereum ETHUSD managed to accomplished a battle-tested level of decentralization, investor and advisor Anthony Sassano says.
Bitcoin BTCUSD less decentralized than Ethereum ETHUSD: Opinion
Bitcoin BTCUSD looks less decentralizaed than Ethereum ETHUSD as of late 2024, due to a complex of reasons. Long-term Ethereum ETHUSD advocate Anthony Sassano shares seven observations to prove that the orange coin is losing a decentralization battle to the second crypto.
Why I believe that Bitcoin is less decentralized than Ethereum:
- No client diversity so Bitcoin Core is effectively the protocol spec
- 2 KYC'd mining pools in the U.S are the biggest pools
- PoW inherently centralizes over time due to economies of scale
- Impossible to mine at…
First of all, Bitcoin Core remains the only mainstream software client for Bitcoin BTCUSD full nodes, with no viable alternatives. The two largest mining pools, Foundry and AntPool, require KYC checks for their participants, which creates a potential centralization point.
Also, Bitcoin BTCUSD home mining has been unprofitable for too long. Bitcoin's BTCUSD proof of work (PoW) mechanism sees its centralization increasing over time.
In two or three halvings (equal to 8-12 years), Bitcoin BTCUSD is set to become easier to attack since its security budget is shrinking.
As covered by U.Today previously, analyst Justin Bons foresees Bitcoin's BTCUSD security budget dropping to critical levels by the years of 2028-2032.
Bitcoin Core developers are leaving, which is another centralization threat: Sassano says that less than five of them remain active.
ETHBTC targeting lows yet again
Last but not least, Bitcoin BTCUSD has been criticized for a weak "social layer" as "digital gold" remains its only long-term mainstream narrative.
By contrast, Ethereum ETHUSD managed to oppose censorship, implemented powerful anti-centralization incentives and is backed by 170+ developers of its ecosystem. With its "tail issuance," Ether's tokenomics also look healthier to Sassano.
Also, its fragmented social layer is a platform for free discussion, which makes Ethereum ETHUSD more flexible and diverse, the speaker concluded.
In this cycle, Ethereum ETHUSD is often criticized for weak price performance against Bitcoin BTCUSD. On Nov. 21 it touched a multi-year low at around 0.032 BTC per ETH, but slightly recovered to 0.04.
By press time, ETHBTC is sitting at 0.036.