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Bitcoin Security Myth Shattered: $10 Billion, 10GW Electricity Can Launch 51% Attack

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[1]: Ethereum Faces Uncertainty in 2025 as Analysts Highlight validator… While⁤ Bitcoin recorded a 121.4% return for the year, Ethereum achieved just 46.3%,according to CoinMarketCap.The launch of ⁤spot Bitcoin ETFs in January ​2024 ⁢attracted $35.3 billion in inflows, driving Bitcoin to new highs. In contrast, Ethereum⁢ ETFs launched in July saw only $2.66 billion in inflows, ⁢fueling a more bearish ⁤outlook ‍for the asset.
URL: [https://coinmarketcap.com/academy/article/ethereum-faces-uncertainty-in-2025-as-analysts-highlight-validator-decline-adn-weak-etf-demand](https://coinmarketcap.com/academy/article/ethereum-faces-uncertainty-in-2025-as-analysts-highlight-validator-decline-and-weak-etf-demand)

[2]: On the resilience of ⁤cryptocurrencies: A​ quantile-frequency analysis of … However, in the long term, ⁣only ‍gold can fulfill this​ role. Lastly, Sakurai ⁤and Kurosaki (2023) reported that Bitcoin, Ethereum, and … the total possible quantity of bitcoin is capped at 21 million,creating a scarcity similar to precious metals like gold (Meynkhard,2020). In times of rising inflation or currency devaluation concerns …
URL: [https://www.sciencedirect.com/science/article/pii/S0275531924000953](https://www.sciencedirect.com/science/article/pii/S0275531924000953)

[3]: Ethereum’s Scaling Crisis? Low Gas Fees Expose Layer-2s Losing … though, despite these efforts, Ethereum’s ⁤on-chain activity ​has dropped to new lows in early⁣ 2025, and its price has struggled to keep pace with Bitcoin’s recent momentum.The Road Ahead for Ethereum. As the scaling crisis ‌deepens, the E…ll more scarce compared ⁣to bitcoin.Since the Dencun upgrade, the supply of Bitcoin has increased by 655,000, while Ethereum has ‍increased by 462,000 ETH during the same period. Today, the supply of BTC has increased by 0.83% per year,66% faster than ETH.

Simultaneously occurring, ‌Justin Drake also ⁢said​ that the supply​ limit of 21 million Bitcoins may lead to long-term security concerns, as miners’ income mainly comes from block rewards.In the past week, 99% of miners’ income came⁣ from block rewards, only 1 % comes from the Internet handling fee.

In Justin Drake’s view, Bitcoin is outdated, and Bitcoin faces security risks due to ⁣its low attack cost:

The Bitcoin network is over.‍ To launch a permanent 51% attack on bitcoin, it⁢ only takes about $10 billion and 10 GW of electricity. For national institutions,this cost is not worth‍ mentioning.

Drake mentioned that any shortable tool associated with BTC mining will incentivize 51%​ attacks. There are $20 billion worth of Bitcoin mining companies – these stocks ‍will instantly generate a “nuclear⁤ explosion”. BTC open contracts have US$40 billion – directly short positions. ​Not to mention the potential short positions generated​ through $100 billion ETF and $100 billion MSTR.

We know that Bitcoin issuance will be cut by half every four years, and Drake’s view is that he is ​worried that⁢ online⁢ fees will not be able to afford miners’ costs.—

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Ethereum’s Future: The “croissant Issuance Model” and Beyond

In the ‌ever-evolving landscape of cryptocurrency, Ethereum stands as‍ a beacon of innovation and ​resilience. As the network ⁣continues to mature,⁣ so too do the discussions surrounding‌ its future. One prominent figure⁢ in this conversation is Justin Drake, a researcher at the ethereum⁤ Foundation, who has​ proposed a novel approach to Ethereum’s issuance model—dubbed the “Croissant Issuance model.”

The Current State of Ethereum

Ethereum has ⁢seen significant changes ⁢since its inception, notably with the recent Merge, which transitioned the network from a ‍proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. This shift has not only enhanced the ⁤network’s energy efficiency⁣ but has also introduced new dynamics to its ​issuance and staking mechanisms.

One of the​ pressing issues currently facing Ethereum is the phenomenon of excessive staking. Platforms‌ like Lido, which‍ offer liquid staking services, have become integral⁢ to this ecosystem but also pose systemic risks. These risks include potential centralization and the impact on the overall market balance.

The “Croissant Issuance Model”

to address⁢ these challenges, justin Drake has proposed the “Croissant Issuance Model.” This model suggests that once 50% of Ethereum’s supply is staked,⁤ the issuance of new ETH will drop‌ to zero. Furthermore, the⁢ maximum annual issuance will be capped at no more than 1%. This approach aims ⁣to strike a balance between the needs of the market and the long-term sustainability⁢ of the network.

Drake emphasizes that the key to ethereum’s success‌ lies ​in improving data availability (DA). While EIP-4844 temporarily reduces the amount of ‍ETH destruction, the long-term demand growth will likely cause the destruction rate to rebound. Drake underscores the importance of building infrastructure for the decades and even centuries ‍to come, likening it to a game of patience and faith.

The Ecosystem’s Resilience

It’s certainly worth noting that even as the Bitcoin network approaches its final⁣ issuance in 2140,it does not mean that all‌ miners will abandon operations.​ The ecosystem is complex and dynamic, with costs and profits constantly shifting. As such,the status of Bitcoin as “digital gold” is unlikely to be abandoned easily.

Summary of Key Points

To better‌ understand the implications of the “Croissant Issuance Model” and its potential ‍impact on Ethereum’s future, let’s summarize the key points in⁣ the ​following ‍table:

|⁢ Aspect ⁢ ‌ | Description ⁣ ⁣ ‍ ⁣ ‍ ‌ ⁣ |
|—————————–|—————————————————————————–|
| Issuance Drop | Once 50%⁢ of Ethereum’s supply is staked, new issuance will drop to zero. |
| Annual ⁢Issuance Cap | Maximum annual issuance will be capped at no more than 1%. ⁢ ⁣‍ ​ ​ ⁤ |
| Data Availability | Improving data availability is crucial for ‍long-term sustainability. |
|⁤ Infrastructure ​ | Building infrastructure for decades and centuries is essential. |
| Market Balance ⁣ | Ensuring market⁤ balance through controlled issuance. ​ ⁣ ⁢ |

Conclusion

The “croissant Issuance Model” represents⁤ a significant step forward in Ethereum’s evolution.⁣ By addressing the challenges of ​excessive staking and systemic risks, this model aims to create a more balanced ⁣and ‍sustainable ecosystem. As Ethereum continues to innovate and adapt, it remains one of the most influential and impactful networks‌ in the cryptocurrency space.

For more insights and ⁣updates on the latest blockchain news, be sure to follow us on our Telegram channel.

!ETH and BTC issuances since the Ethereum merger

Source: ultrasound.money

This article provides a comprehensive overview ​of the “Croissant Issuance Model” and its implications for Ethereum’s future. For further ‍reading, explore the Ethereum Foundation and Ultrasound.money for more detailed insights into Ethereum’s issuance dynamics and data ⁣availability improvements.

Ethereum ‍ETFs Gain Momentum: Insights from Recent Developments

In the dynamic world of cryptocurrency,Ethereum has emerged as a powerhouse,drawing significant investment and technological⁤ advancements. Recent developments⁤ have sparked interest in Ethereum ETFs, ‌with notable figures and institutions taking a keen interest. Let’s delve into ⁢the latest insights and what they mean for the future of Ethereum.

Trump’s Son Advocates ​for Ethereum Investment

Eric Trump, the second son of ‌former U.S. President Donald Trump, recently urged investors to increase their stakes in ⁤Ethereum.His call to action comes at a time when the cryptocurrency market is witnessing significant volatility. However,it was also⁣ revealed that WLFI transferred $300 million in assets to an exchange,raising questions about the timing and intent behind such ‍moves.

Institutional Interest in ethereum ETFs

Institutional investors have been closely monitoring‍ Ethereum ETFs, with several‌ high-profile entities filing for ETFs. According to a comprehensive list of 13F filings, various institutions have shown interest in Ethereum ETFs. This institutional backing is a​ strong indicator ⁢of the growing legitimacy and potential of Ethereum in the ​financial sector.

Ethereum’s Technological Advancements

Ethereum is not⁣ just gaining traction in the investment world; it is also making significant strides in technological innovation. Vitalik Buterin, the co-founder of Ethereum, recently announced that the Pectra upgrade will be launched in March. This upgrade is expected to double the capacity of Layer 2 ‍solutions and⁣ improve the gas limit for the first time in the ​Proof of Stake (PoS) era. These advancements are crucial for scaling Ethereum and‌ making ⁣it more efficient and user-kind.

Key Points Summary

To better understand the recent developments, let’s summarize the key points in the following table:

| Development ⁣ ⁤ ‍ | Impact on Ethereum ⁤ ⁢ ‍ |
|——————————————–|———————————–|
| Eric Trump’s investment⁢ advice | Potential increase in ‌retail⁣ investment |
| ​WLFI asset transfer ⁣ ⁢| Possible market manipulation concerns |
| Institutional interest in Ethereum ETFs | Growing legitimacy and adoption |
| pectra upgrade ⁢ | Enhanced Layer 2 capacity and efficiency |

Conclusion

Ethereum continues to be a focal point in the cryptocurrency landscape, drawing attention from investors and technologists alike. With significant technological upgrades and institutional backing,Ethereum is poised for further growth ‌and innovation.As the market evolves, it will be crucial to⁤ monitor these developments closely to stay ahead of the curve.

For more insights into Ethereum ⁣ETFs and recent‍ investments, read more here. To stay updated on the latest ⁢technological advancements, visit this link. For a deeper dive into the‌ recent asset transfers, check out this ⁤article.

Interview: Recent Developments Around Ethereum Issuance and Ethereum ETFs

Ethereum Issuance and Sustainability

Q: Can you explain the “Croissant Issuance Model” and how it impacts Ethereum’s future?

Answer: The “Croissant Issuance Model” is an innovative approach to managing Ethereum issuance. it involves dropping the issuance to zero once 50% of Ethereum’s supply is staked,while capping the maximum annual issuance⁤ at no more than 1%. This balance aims​ to cater to ⁣both current market needs and the long-term sustainability of the network. The goal is to strike a⁤ compromise between short-term demand and the network’s ⁤decade-long view.

Q: What role does⁢ data availability play in Ethereum’s long-term success?

Answer: Improving data availability (DA) is crucial for the long-term sustainability‍ of Ethereum. While EIP-4844 temporarily reduces‍ ETH destruction,long-term demand growth‍ will ‌likely cause ⁢the destruction rate to rebound. Building ‍robust infrastructure is essential,akin to a game of patience and faith,ensuring the network’s viability over decades and even ⁣centuries.

The Ecosystem’s Resilience

Q: how does the sustainability of Bitcoin affect its miners and ecosystem?

Answer: Even as Bitcoin approaches its final issuance in 2140, it does not⁣ mean miners ‍will abandon operations. The ecosystem is dynamic, ‌with shifting costs and⁢ profits. Bitcoin is likely to retain its status as “digital gold” due to its resilience and the complex​ nature of its network.

Technological Advancements in Ethereum

Q: Can you explain the recent technological advancements in ⁢Ethereum?

Answer: Ethereum is making significant strides, particularly with the‍ upcoming Pectra upgrade. Scheduled for March, this upgrade is expected to ​double the capacity of layer 2 solutions and improve the gas limit, which is the first such change in the Proof of Stake (PoS) era.These advancements are pivotal ⁣for scaling Ethereum, making it more⁣ efficient and user-friendly.

Ethereum ⁣and Institutional Investment

Q: What is the impact of institutional interest in Ethereum ETFs?

Answer: Institutional interest in Ethereum ETFs signifies growing legitimacy⁣ and adoption in the financial ⁣sector.High-profile entities‍ filing for ETFs indicate a strong belief in ⁢Ethereum’s potential,‍ which can drive further investments and technological advancements.

Q:⁢ How does Eric Trump’s advocate for Ethereum⁣ compare to institutional ​interest?

Answer: Eric Trump’s call for increased investment in Ethereum adds to the retail interest narrative. While ​it’s‍ noteworthy, institutional filings for ETFs point to a more ample long-term influence on the market.

Conclusion

Q: What are the ⁢main⁤ takeaways from recent developments in ​Ethereum?

Answer: Ethereum continues to ⁢command significant attention​ and investment. The “Croissant issuance Model” aims to ⁢balance⁤ market needs with long-term sustainability. Technological upgrades like the Pectra upgrade enhance efficiency, while institutional investments⁣ solidify ethereum’s position in the financial sector. ⁢This dual track of technological progress ⁤and institutional backing positions Ethereum well for future growth and innovation.

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