Vitalik Buterin takes stock of the new year. He declares Bitcoin Cash (BCH) to have failed and expresses his enthusiasm for proof-of-stake.
Vitalik Buterin takes stock of the past decade for the new year. He declares Bitcoin Cash (BCH) to have failed and expresses his enthusiasm for proof-of-stake.
Buterin predicts stablecoins
Ethereum founder Buterin announced in advance that a whole tweetstorm would follow. He made his most important thoughts clear in over two dozen tweets.
That includes mentioning that he predicted stablecoins and their popularity in a 2013 post.
“Those who want to keep what they have are poorly off with Bitcoin”, according to Buterin.
Even fiat currencies are better suited for this than Bitcoin. Eight years have passed since this statement, in which Bitcoin has exploded, but fiat currencies have mostly not fallen to the same extent.
Nevertheless, the inflation of the fiat currencies increased steadily even during this period. Citizens of some countries would have been better off investing their money in Bitcoin early on.
Inflation destroys wealth
In a year-on-year comparison in 2020/21 , Colombia performed very poorly with inflation of 2,700 percent. In some other countries, people have suffered extreme losses in value, for example, in Sudan and Zimbabwe.
But Buterin also stated that the main advantage of Bitcoin lies in its lack of regulation and control by governments. If only one country in the world is free, crypto companies can operate from there and thus positively impact the whole world.
More stable currencies are beneficial for people without access to the banking system. If they could be combined with the lack of regulation of Bitcoin, they would be of great use.
In this way, Buterin linked the ideas that may have helped the founders of the first stablecoin USDT to invent them in 2014.
His recent visit to Argentina confirms that Buterin’s assumption was correct.
Bitcoin Cash with no future
In his all-around stroke, Vitalik Buterin would also like to let his followers know that he recognized the chance of Altcoins at an early stage. You can solve other problems than Bitcoin and thus have a raison d’être.
Of course, he sees Ethereum in precisely this role. Nevertheless, he states that this view can no longer be held today. Blockchains can now be used more universally.
Connections between different blockchains are riskier and experiments can also be implemented using Layer 2 solutions.
He was also optimistic about Bitcoin Cash. This has a block size of up to 32 megabytes instead of the single megabyte of Bitcoin. He preferred scalability in 2017.
At that time, Bitcoin Cash split off from Bitcoin. In the meantime, Buterik’s position has changed. He regards the project as a failure. It’s just about a rebellion.
However, Buterin does not provide a technical answer. While the average Ethereum fees at the turn of the year are a high 26 US dollars, BCH is currently not even reaching the 1-cent mark.