A Staunch Ethereum Supporter Has Forcefully Argued Against the Notion That the Ethereum Blockchain Network Is Struggling

A staunch supporter of Ethereum has come to the fore, arguing vehemently against the assertion that the Ethereum blockchain network is struggling by trying to do too many things at once and subsequently “failing on all fronts.”

The Ethereum supporter’s argument, shared via an X post, stemmed from a response to a crypto critic who, in an earlier post, stated that Ethereum does not dominate any of the three sectors it is trying to be best at. The crypto critic highlighted serving as SoV commodity money, providing the most efficient scalability platform, and having more blobspace than any other network as the three sectors.

According to the critic, Bitcoin, Solana, and Celestia are better suited for each category, respectively, with Ethereum being the second-best in all the highlighted areas.

However, the Ethereum supporter attempted to debunk the critic’s claims on all three fronts, classifying Ethereum as the only truly decentralized cryptocurrency network. He berated Bitcoin, highlighting the possibility of a 51% attack on the pioneer cryptocurrency network because of its diminishing security budget.

“Respectfully, BTC is completely screwed because of its security budget. It would only cost $8B to 51% attack BTC today. When this gets down to $2B (AKA, BTC's security market cap becomes 0.1% of its asset market cap), a 51% attack is virtually certain to happen. This will leave BTC completely useless as SoV and open the door for another chain to take over. BTC maximalists like to say that BTC's market cap is $700B, but the relevant figure is its security market cap, which is the total value of coins held by non-early-stage entities like exchanges, hedge funds, and large BTC holders. Today, this is roughly $50B, and it's rapidly decreasing as more BTC flows into the hands of long-term holders who aren't interested in selling. As BTC's price increases, its security market cap decreases proportionally. This is because the smaller portion of BTC that is held by non-early-stage entities will be affected more significantly by the price increase, leading to a larger aggregate decrease in the security market cap. When BTC's security market cap reaches 0.1% of its asset market cap, which is about $2B, we can be sure that a 51% attack will occur, rendering BTC completely useless as SoV and paving the way for another chain to emerge as the dominant SoV if it manages to maintain a larger security market cap in relation to its asset market cap,” the Ethereum supporter wrote.

The supporter further stated that Ethereum remains the best bet for scalability in the blockchain ecosystem, considering its potential to accommodate multiple layer-2 protocols. He believes that, unlike its counterparts who are currently claiming to be more scalable, Ethereum has a brighter future and will surpass them.

Finally, pertaining to the blobspace argument, the Ethereum fan did not argue over the critic’s opinion. He aligned with the view that Ethereum’s blobspace is relatively limited, citing the high cost of running such a system on Ethereum compared to doing it with some VC AWS chains.

The Ethereum supporter concluded their defense by drawing an analogy comparing Ethereum with Windows and the wider internet, arguing that claims of the blockchain network trying to do too many things are unfounded. Instead, he considers this versatility a strength.

“The best analogy is Windows vs. Macintosh. Windows was never the best at any one thing but was good enough at everything and could be used by the greatest common factor. It became the standard operating system despite not having the best UI/UX like Macintosh or the best gaming capabilities or the best programming language support. Similarly, Ethereum is not the best at any one thing but is good enough at everything and can be used by the greatest common factor. It is the most decentralized chain, has the greatest potential for scalability with layer 2s, and is capable of supporting diverse use cases like DEFI, NFT, gaming, and Web3 applications. It is also the chain with the largest community and developer activity. In contrast, Bitcoin is excellent at SoV but has no potential for scalability and is vulnerable to a 51% attack due to its low security market cap. Solana is fast but suffers from poor decentralization and high gas fees. Finally, Celestia is scalable but lacks a large community and developer activity, and its blobs are more expensive to run than those on Ethereum, making it difficult to sustain in the long term,” the supporter added.

Ultimately, the Ethereum supporter considers the famous blockchain network the most significant, one that would outlive its contemporaries in delivering efficient and diverse services to users.