• 28 May, 2024

Michael Saylor Praises PoW and Bashes PoS; Calls it Unstable and Inefficient

Michael Saylor, the founder and CEO of MicroStrategy as well as the foremost evangelist for Bitcoin, has discussed his views on blockchain technology and crypto once again.

Yesterday, the cryptocurrency enthusiast made a post on Twitter in which he stated unequivocally that Proof-of-Stake protocols like Ether are extremely unstable, inefficient, opaque, and volatile due to their fragile design. In contrast, Saylor said Bitcoin is designed to be stable, robust, and increasingly secure and efficient over time based on advancements in Proof-of-Work and ASIC technology.

Saylor made those remarks in response to a video posted on YouTube by Bitcoin maximalist and friend of the cause Matthew R. Kratter. Kratter warned his 190k YouTube viewers that Ethereum might see a collapse similar to Terra because of its proof-of-stake consensus method.

Kratter argues that although staked ETH safeguards the network, it might fail if validators gave in to a protocol-level bank run and withdrew their investment.

A few months ago, Ethereum experienced a major technical shift called The Merge, in which it abandoned its Proof-of-Work consensus mechanism in favor of the more decentralized and secure Proof-of-Stake mechanism.

Due to the update, the dynamics of ETH supply have shifted significantly. Before the integration, the issuance rate of ETH was around 4.5 percent, according to data from Glassnode. Approximately 0.5% less stock was issued after the merger. The burns eat up most of the nominal inflation rate, which is at 0.55 percent.

Following the completion of The Merge, we had a high issuance of around 14,700 ETH in the month of October. November was the month that had the most amount of inflation, at around 2,400 ETH. Since yesterday, the net supply of Ethereum has decreased to a negative value of around 1885 ETH.

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