On September 1, Vitalik Buterin conducted an interview with Noah Smith, author of political economy and also the founder of Ethereum, who spoke in an ominous tone about Bitcoin as well as the long-term security of the network. Buterin alluded to the collapse of the crypto economy and was surprised that “the crash didn’t happen earlier.”
Buterin: Bitcoin ‘failed to achieve payment volume needed to secure what could become a multi-trillion-dollar system’
Ethereum founder Vitalik Buterin recently interviewed political economy author Noah Smith, and Buterin had a lot to say about the current state of crypto. Smith 1st asked for his thoughts on the recent crypto crash, and Buterin thought it might crash sooner rather than later.
Throughout the interview, Buterin said the same thing: “I was shocked that the accident didn’t happen earlier.” “Typically, crypto bubbles last around 6-9 months when they exceed the previous high, followed by a rapid crash. This time, the market lasted for about a year and a half.”
Buterin also talked about the Bitcoin (BTC) network as well as integration, Ethereum’s highly anticipated proof-of-work (PoW) to proof-of-stake (PoS) agreement. He says Bitcoin is not cutting once it includes fee income from block grants.
“In the future, the security of Bitcoin will be fully recovered from payments, and Bitcoin is not only successful in obtaining the payment revenue needed to secure what could be a multi-trillion-dollar system,” said Buterin.
When Smith asked Buterin about Bitcoin’s use of energy, the Ethereum founder explained that PoS doesn’t just reduce damage to the structure, but rather concerns the security of the blockchain.
“A consensus system that sells large amounts of electricity at unnecessary prices is not healthy for the event, collectively requiring several thousands of BTC or ETH per year,” Buterin emphasized. “Eventually, of course, the issue could be reduced to near-zero, it could stop being difficult for that purpose, and on the other hand, Bitcoin could start dealing with another issue – a way to keep it secure. Buterin added:
And these security incentives are the most important driver behind Ethereum’s move to proof-of-stake.
Ethereum founder insists early proof-of-work era ‘unsustainable and irreversible’
Buterin understands that Bitcoin will not change its consensus mechanism, at least for the time being, but believes that if the chain is attacked, the discussion of the hybrid PoS algorithm rule may come into play.
“Obviously, if Bitcoin is really under attack, I expect the political power to change the least hybrid proof of stake may appear quickly, but I expect that to be a painful transition,” the developer of the software system told Smith. Ethereum’s co-founder thinks that individuals have the wrong plan regarding PoS, about giving governance to the largest stakeholders on the network.
“There are those who try to say that PoS allows large stakeholders to control the protocol, but I believe those arguments are simply wrong.” “Captive and PoS ar management methods, once again, rest on the assumption that they are actually consensus methods. All they are doing is facilitating the network to fit on the appropriate chain,” he said.
Buterin goes on to say that he thinks the original version of the Exile is a good starting point, but today he believes it is an antediluvian at the door response and some will never come back.
The highly democratized early proof-of-work era was a pretty good thing, and cryptocurrency ownership helped create more equality admirably, but it’s unsustainable and not coming back.
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