In a tweet yesterday, Michael Saylor, co-founder of Microstrategy, stated that Ethereum is likely to crash like TerraLuna.
He questioned the token’s transition to the Proof-of-Stake consensus mechanism. He compared it to Bitcoin, praising the latter for its long-term stability, robustness, and efficiency.
“#Bitcoin is engineered to be stable, robust, and increasingly secure & efficient over time based on Proof of Work and ASIC technology advances. Proof of Stake protocols are inherently unstable, inefficient, opaque, and risky due to their fragile design.” He said.
Michael Saylor’s comment is in response to a YouTube video by Bitcoin maximalist Matthew R. Kratter. In the 17-minute video, Matthew discussed the capabilities of Ethereum’s Proof-of-Stake model.
According to him, the model makes the token vulnerable to a Terra-style collapse. While staked ETH secures the blockchain, he believes that if the token price falls and validators withdraw their staked tokens, the protocol may collapse.
Kratter wrote in the video description:
“The lower Ethereum’s price falls, the more people will choose to unstake their coins, which further erodes Ethereum’s security and could lead to a death spiral, Regulators need to look into whether proof of stake protocols like Ethereum and Cardano are at risk of catastrophic implosions like Terra Luna.”
Saylor has always been opposed to altcoins, particularly Ethereum. He considers Bitcoin to be the sole “notable” cryptocurrency.
Last week, Saylor stated that it would be best if the Securities and Exchange Commission shut down all altcoins, claiming they are “unregistered securities.”
MicroStrategy, his trading firm, uses Bitcoin as its primary reserve asset and recently purchased $6.0 million in BTC.
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