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Bitcoin’s [BTC] decreasing reward schedules are dishonest, says Ethereum’s Vitalik Buterin

Jibin M George

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Source: Pixabay

The issue around Bitcoin’s supply cap of 21 million BTCs is one that has been around for quite some time now. The debate was pushed into the limelight as recently as February, when heated discussions about the subject made their way to Twitter. Vitalik Buterin, the Co-founder of Ethereum, became the latest person to give his two cents on the digital gold’s supply cap.

During a recent Reddit Q&A, the Russian-Canadian programmer was asked how he felt about Bitcoin’s supply cap, in light of the falling block rewards that would follow the cryptocurrency’s halving in 2020, newsBTC reported.

Buterin did not mince his words, stating that “there was something dishonest to this decreasing rewards schedule concept.” Citing Bitcoin’s 21 million supply cap, Buterin said that imposing such an upper limit was disingenuous as it presented two diametrically and contradictory ideas at once.

He said,

“You’re using the present level of issuance of the system and the system’s ability to operate under the present level of issuance as a proof that the system is safe. But then you’re using the fact that it has this baked in decreasing reward schedule as a proof that it’s finite supply. But then if its finite supply, then the reward schedule is going to decrease and we have no evidence that the system is going to be safe under the decreased awards. “

Buterin’s comments questioning the safety and security of a chain with reducing emission rates incited a lot of diverse reactions online. Founder of Mythos Capital, Ryan Sean Adams, was one of the people to come out in support of Buterin. He said,

“Completely agree. Supply caps are good for the meme, but ultimately disingenuous when implemented too early.”

Others, however, were not that kind. John Carvalho, the CCO of Bitrefill, called Buterin’s example illustration of Bitcoins dishonest. He further added,



“..he ignores that the fees miners need are measured in their own capex, not in bitcoins. If price doubles at a halving, everything is fine.”

The reaction to Vitalik Buterin’s comments on Bitcoin’s supply cap is a continuation of the debate that ensued after February’s Satoshi Roundtable. Matt Luongo, the Founder of Fold, had then proposed the raising of Bitcoin’s supply cap. Luongo said that doing so was only logical as with block rewards halving, miners won’t have any incentive to secure the network and protect it against a 51% attack.

Like Buterin, Luongo’s arguments incited a heated discussion as well. Bitcoin Cobra, the Co-founder of Bitcoin.org, responded,

“Anyone who dares suggest we raise the supply of Bitcoin should be ostracised and chased out of the community. 21 million Bitcoins will be minted, no more.”





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XRP

Has XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?

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Hash XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?
Source: Unsplash

Opinion: Bitcoin, the first cryptocurrency, has had over ten years to grow. However, other altcoins did not have the liberty, due to which Bitcoin exerts its dominance over almost all altcoins in the ecosystem, be it Ethereum, XRP, or Cardano. The price of altcoins generally tends to rise if Bitcoin’s price surges rapidly. The same can be said about the downtrend as well, which is why altcoins are said to be coupled with Bitcoin.

However, the recent buzz on crypto-twitter is that XRP is on the verge of decoupling from Bitcoin. A Twitter user @XRPMOONSHINE tweeted:

“DO ME A FAVOR OPEN UP A BTC/USD CHART AND AN XRP/USD CHART. THEY HAVE DECOUPLED AND ARE MOVING DIFFERENTLY.”

In a very general sense, the comparison of the price change of XRP and BTC gives a crude understanding of whether the prices have actually decoupled or not. Hence, the daily chart attached below shows the price of BTC and XRP against the US Dollar and extends from August 2018 to April 2019. The price of XRP seems to be following a lag from the price of BTC and do not necessarily mean that it has decoupled.

However, there are timeframes where the price of XRP has moved completely unrelated to that of Bitcoin. For example, the meteoric rise of XRP from September 18 to 22 was far higher than the price pump of BTC over the similar timeframe; but the drop of XRP from November 18 to December 16 was exactly the same as that of BTC’s.

Furthermore, XRPMOONSHINE suggested that XRP price was being manipulated. He tweeted:

“It is being manipulated to keep it from rising. For example look at XRP/BTC pair. Keeping it under the down sloping resistance from .80 in September. Thats what I mean by Suppressed, Although im expecting a fairly large move to the upside before 4/24/19.”

The “idea” of the price of XRP being manipulated is not unpopular within the XRP ecosystem as Peter Brandt, a famed trader, suggested the same in one of his tweets.

Brandt tweeted:



Conclusion

XRP may have started to decouple from Bitcoin, but it surely hasn’t decoupled completely. The notion that XRP is being manipulated to keep its price below certain levels can also not be confirmed without proof.





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