The founder of MicroStrategy called cryptocurrencies using the Proof-of-Stake (PoS) consensus algorithm unstable and at risk of collapse.
Michael Saylor supported Bitcoin maximalist Matthew R. Kratter, who recently stated that the Proof-of-Stake consensus mechanism, which the Ethereum network switched to, makes Ether more vulnerable. Kratter suggested that regulators examine whether the Proof-of-Stake algorithms used by the Ethereum and Cardano networks are at risk of collapse, as happened with Terra Luna.
The lower the Ether rate falls, the more people will want to give up their coins, which will further undermine the security of Ethereum and may lead to the collapse of the entire project, both Kratter and Michael Saylor are concerned. If the validators capitulate and withdraw the blocked funds from the staking, this will be another factor contributing to the collapse of the Ethereum network, the Bitcoin enthusiast suggested. Michael Saylor supported him:
“Bitcoin uses a Proof-of-work algorithm, and therefore BTC is a more stable, reliable, secure and efficient crypto asset. This is proved by the demand for ASIC miners. And protocols running on Proof-of-Stake are unstable, inefficient, opaque and risky due to their fragile design,” Michael Saylor tweeted.
Saylor’s comments drew criticism from a number of Ethereum community members. Some Ethereum followers began to list the disadvantages of the Bitcoin network in response, in particular, low programmability. However, Bitcoin maximalists believe that this is an advantage, not a disadvantage of the first cryptocurrency.
This is not the first time the founder of MicroStrategy has criticized Ether and other altcoins. Saylor recently called on the U.S. Securities and Exchange Commission (SEC) to close Ethereum, as, in his opinion, Ether is considered an investment contract. The businessman is convinced that bitcoin is the only ethical crypto asset that can protect investors’ funds from inflation.