Dennis Porter, the founder of the Satoshi Action Fund, has issued a stark warning about Ethereum. According to Porter, this will be Ethereum’s last cycle as the industry’s second-largest cryptocurrency by market cap.
Buterin Failed, Declares Dennis Porter
Unless you’re new in the cryptoverse, you’d know there has been an ongoing war between ethereum and its bigger and better-known rival, bitcoin. This war did not end after the Merge. In fact, it became more intense.
Ethereum received plaudits and the spotlight a few weeks ago for smoothly completing its much-hyped Merge. The Merge jettisoned the crypto’s energy-intensive proof-of-work consensus mechanism for the proof-of-stake security model. The high energy consumption has long been a key criticism of PoW, which remains the basis of bitcoin mining after ether ditched the process.
Some proponents believe that besides alleviating energy concerns, Ethereum’s transition to PoS — intended to position its ecosystem as the future currency — will also put even more pressure on bitcoin’s sustainability.
But not everyone is convinced Ethereum is now much better than bitcoin after the milestone technological overhaul.
Dennis Porter, the founder of the nonprofit Satoshi Action Fund and bitcoin policy advocate, noted in a tweet that this is Ethereum’s last cycle. He claims Ethereum creator Vitalik Buterin had a lot of time establishing the token’s value proposition, but he failed.
The former political advisor believes that many altcoins have the potential to do what Ethereum does. However, no blockchain can fulfil bitcoin’s role perfectly. He believes this will all become clear by 2024.
Of course, Ethereum’s transition to the PoS system brought downsides, notably the risk of increased centralization. Case in point, the two largest stakers of the second-most popular cryptocurrency post-Merge were Lido and Coinbase. This even increases the risk of a 51% attack.
Moreover, the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has insinuated that Ethereum could now be subject to federal securities laws due to the new staking yields.