LUNA’s Collapse More Than Just a Tragedy
LUNA’s fall was not only surprisingly tragic but also beyond everybody’s imagination.
It struck the crypto community as if the project was invincible and would be able to stand firm against any and all circumstances.
However, to the utter shock and dismay of the crypto community, Luna turned out to be as mortal as any and easily failed in avoiding inevitable collapse.
By the time of this writing, Luna is no more and is now history.
After Luna’s fall, then came the biggest crisis of the crypto industry which it conceded the news of the world’s biggest platform, by crypto trade volume, FTX getting bankrupt for sure.
Ethereum Network’s Destiny
Bow there is an ongoing debate that involves an argument that the Ethereum network is destined to be collapsed in the same fashion as Luna.
This argument has been raised by the former CEO of tech giant Microstrategy namely Michael Saylor who is regarded as one of the top protagonists of Bitcoin.
One can simply reject Saylor’s argument on the pretext that Saylor may be biased because he supports Bitcoin i.e. Ethereum’s competitor.
However, Saylor is a reputable man and held key positions at several corporate giants. He cannot simply throw an argument in the air without any rationale or basis.
Ethereum Shift from POW to POS Catastrophic?
What he exactly opined recently was that Ethereum’s shift from proof of work (POW) to proof of staking (POS) could be disastrous.
He argued that the Ethereum network was specifically built for POW and not POS. Hence, there could emerge a possibility of leading the network toward the edge and falling in the same manner as Luna.
He raised this argument while commenting on a Twitter post where Bitcoin and Ethereum were being discussed.
In this debate, Saylor was also taking interest and commented on how unstable cryptocurrencies, including Bitcoin and Ethereum, are.
It was hence during this debate that Saylor gave his view on the Ethereum network’s future after the major shift.
How does Trader University predict Ethereum’s Future?
After making that comment, Saylor did not stop there and subsequently added a link in his post to a debate on the same subject.
In the link Trader University’s Matthew R Kratter was talking about Ethereum POS and why it does not suit a network like Ethereum.
Kratter argues that the Ethereum network is now relying on the staking of coins and presently there is a huge number of staked coins in the network.
Because of excessive staking, nobody can actually withdraw their staked coins, says Kratter.
Kratter warns if digital currencies’ value declines alarmingly and the withdrawal code is there, then users would be forced into withdrawing staked coins.
Regulators Called Upon
At the end of the video, Kratter could be seen urging regulators to immediately deal with POS-based blockchain networks, especially Ethereum.
Kratter seems to be drawing the attention of regulators to thoroughly assess potential risks stemming from POS-based platforms such as Cardano and Ethereum.
Ethereum May Fall As LUNA
Saylor seems convinced that Ethereum’s shift from POW to POS could be catastrophic, leading to unthinkable implosions and investors’ doom.
He then suggests that the purpose of raising the argument is to prevent happening of Luna again in the shape of Ethereum.
Saylor then takes his turn on Bitcoin but instead of raising any criticism, he lauds Bitcoin and its network.
With regard to Bitcoin, Saylor commented that compared to other networks and cryptocurrencies, BTC is reliable, stable, efficient, and potentially less risky.
Is Bitcoin More Reliable Than Others?
He suggested further that in contrast POS based networks are less effective, unstable by default, highly risky, and extremely fragile.
Thereafter wrath was seen coming from Ethereum protagonists who then indulged in heated debate and comment upon Saylor’s tweet.
For instance, one of Ethereum’s supporters commented that he now understood why Saylor was kicked out of Microstrategy. Surely he has lost all senses.
Ethereum Community’s Response to Saylor
Another user criticized former Microstrategy’s CEO by reminding Saylor about his former employer’s investments in Bitcoin.
A supporter said ‘has Saylor ever realized how much loss Microstrategy has incurred because of his decision of investing the company’s funds into Bitcoin?’
Nonetheless, Saylor remains one of the biggest supporters of Bitcoin no matter what. He may be stupid for many but he stands happily under the banner which says ‘Bitcoin is Eternal Light’.
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