Opinions about Ethereum’s Future

If Bitcoin is digital gold, Ethereum will be digital silver.

But, cryptocurrency is all about cybersecurity.

Bitcoin uses the SHA256 algorithm for mining Proof of Work, while Ethereum uses the Keccak256 algorithm. Noted that Ethereum is shifting PoW to PoS in the coming months.

Because SHA-2 was available in 2001 and SHA-3 was available in 2015, Ethereum's blockchain is more secure than Bitcoin fundamentally.

Since Bitcoin is mimicking gold, the progress of its development is very slow.

The benefits of the gold system are:

• inflation resistance

• counterfeit resistance

• economic recession resistance

Bitcoin has capped the supply at 21 million coins to fight its inflation. The mining of Bitcoin to prevent double-spending and the power of inputting to mine Bitcoin can prevent Bitcoin price drops.

Ethereum improves Bitcoin by increasing the flexibility of the blockchain, which can be programmable through a smart contract.

Ethereum is an unlimited supply.

So the disadvantages of Ethereum are:

• inflation

• create economic recession

Proof of Stake will make Ethereum worst.

Even though there is a burning mechanism to prevent inflation, Proof of Stake mimics the fiat system to inflate the economy even more than you can expect.

Whoever has more Ethers will consistently have more rewards than people with fewer Ethers.

The economy Ethereum created becomes more unfair.

Of course, PoS can make Ethereum works a bit faster in the short term to attract more developers to use the blockchain. However, Ethereum will face network congestion again.

Is Bitcoin preferable, then?

People want to expand the usage of the blockchain beyond what it was designed to be without improving its fundamentals.

It will be tough to do so due to sacrificing its security.

And scalability may not even satisfy the demand.

Of course, technology continues to improve.

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Photo by Zoltan Tasi on Unsplash