Proof Of Stake Security Budget Flaw – Bitcoin Magazine

This is an opinion editorial by Mickey Koss, a West Point graduate with an economics degree. He spent four years in the infantry before transferring to the Finance Corps.

Ethereum founder Vitalik Buterin recently expressed concern about the long-term security of Bitcoins citing relative security budgets based on network fee structures.

These concerns are unfounded and are structured in a false comparison between the two systems. Here’s why:

First, Ethereum’s proof-of-stake hardware and monetary requirements encourage the centralization of stake in service providers such as large exchanges. Outsourcing carries a multitude of risks to include the co-optation of the network at the stroke of a pen by the jurisdictional government in which these entities exist.

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