Some believe that PoS reduces power consumption, but a lacking historical precedent makes it unsuitable to Bitcoin and its value proposition. Ripple reportedly thinks its bet on crypto may benefit from the demise of Bitcoin, as it has always helped existing financial institutions.
Rick Delaney, Senior Crypto Analyst at OKX, considers that Bitcoin (BTC) should maintain the consensus mechanism it has tested for 14 years.
Over the last two months, Ripple, Greenpeace and other environmental organizations have shown they do not know why Bitcoin is superior. The campaign Change the code, not the climate, announced in March, attempts to pressure influential bitcoiners to support the still-experimental proof-of-stake (PoS) consensus mechanism.
The campaign relies heavily on the ongoing transition to PoS of the Ethereum network. Besides, the anti-PoW crowd will increase their pressure on Bitcoin when Ethereum (ETH) miners switch definitely.
The Difference between Proof of Stake and Bitcoin Proof of Work
Although the reason for changing the code base is that Ethereum can do it, this completely misses the point regarding Bitcoin. Advocates of the network of the pioneering cryptocurrency highlight its predictability and adherence to sound financial principles.
Some claim that PoW offers unsurpassed security, but others believe that PoS favors the reduction in power consumption. Despite the ongoing debate, the lack of a historical precedent of PoS is unsuitable to Bitcoin and its value proposition as the hardest currency.
The Predictability of Bitcoin Allows Building Trust in It
BTC has existed for 14 years with over 99% uptime, but people do not yet trust it. Despite the many changes to the protocol, its limited supply, protected by the most powerful computing network, remains the same.
Those changes without historical precedent often raise doubts among investors about what might happen. If a Fortune 500 company fired a successful CEO to hire a stranger, that would impact its share price. In the case of Bitcoin, its entire value proposition lies in its predictability.
The Belief that Ethereum Is Ultrasound Money Is a Lie
The staunchest Ethereum followers launched a popular meme saying that increasing the number would also increase the price. In other words, they even believe ETH is an ultrasound form of money compared to BTC.
People consider that BTC is valid due in part to its limited supply of 21 million coins. However, that would mean nothing if its users do not trust that it would continue to be so. If Bitcoin left its proven consensus mechanism for one lacking 14 years of battle testing, they would not believe in it.
Misunderstanding or Willful Misconduct regarding Switching to the PoS Consensus Mechanism
The campaign Change the code, not the climate, announced by Ripple and Greenpeace, goes against what Bitcoin users consider the core value proposition of the network.
Some environmental with tunnel vision on energy use say the apps using electricity that they dislike should disappear. Since Greenpeace and the Environmental Working Group do not see any value in Bitcoin, killing what makes it superior poses no problem.
Ripple, the company behind the XRP cryptocurrency, reportedly thinks its bet on crypto may gain much from the demise of Bitcoin. The money transfer network has always helped existing financial institutions protect their status quo, which justifies suspicions.
By Alexander Salazar