Bitcoin Maximalist Michael Saylor Says Ethereum May Collapse Like LUNA
Ethereum has come under fire from bitcoin maximalist and former MicroStrategy CEO Michael Saylor who has compared the network to LUNA, which tragically collapsed in May 2022. The effects of the collapse continue to haunt the broader crypto market, playing a role in the collapse of many notable crypto firms . Now Saylor has pointed fingers at Proof of Stake (PoS) networks like Ethereum that have a possibility of crashing like the infamous Terra.
Will Ethereum break like LUNA?
In a Twitter post, the former CEO of MicroStrategy highlighted that Ethereum is at risk of seeing a LUNA-level event. The argument was basically a comparison of bitcoin with other cryptocurrencies such as Ethereum which Saylor believes is unstable.
The tweet included a link to a Trader University YouTube video that elaborated on the Ethereum blockchain and why there might be a problem with the PoS network. It highlights the fact that the Ethereum network relies on staked ETH to run, which at this point sees a lot of staked coins because there is no way to withdraw them. However, Matthew R. Kratter highlights that once the code to withdraw is available and if the price of the cryptocurrency falls further, more users will be inclined to delay their coins.
At the end of the video, Kratter then calls for regulators to look at PoS networks like Cardano and Ethereum to determine if they are at risk of “catastrophic implosion risks.” This is in an effort to prevent another event like the LUNA collapse.
Saylor then compares the network to bitcoin in his tweet, saying, “Bitcoin is engineered to be stable, robust and increasingly secure and efficient over time based on Proof of Work and ASIC technology advancements.” In contrast, “Proof of Stake protocols are inherently unstable, inefficient, opaque and risky due to their fragile design,” he added.
ETH takes a dive as speculations gain momentum | Source: ETHUSD on TradingView.com
Drawing Ire Of Supporters
Michael Saylor has always been a vocal bitcoin maximalist, favoring the pioneering cryptocurrency over everyone else in the space despite their achievements. This isn’t Saylor’s first time dissing Ethereum, but his latest attempt has drawn the ire of ETH supporters.
One user points to MicroStrategy’s bitcoin investments made under his leadership. At current prices, the company is experiencing unrealized losses on its BTC holdings, where a corresponding investment in ETH would have resulted in a profit for the company, as well as passive income if the coins had been staked.
lol Saylor…what a BIG mistake you made… pic.twitter.com/KvGg65nRfw
— $ETH 🚀🦇🔊 (@Dark86268590) 14 December 2022
Nevertheless, Saylor remains a staunch supporter of bitcoin and his Twitter page is proof of this. One of his latest tweets includes a picture of a bitcoin light bulb with the caption “Bitcoin is eternal light.”
#Bitcoin is eternal light. pic.twitter.com/4Ht8EgpXkC
— Michael Saylor⚡️ (@saylor) 14 December 2022
Featured image from Coingape, chart from TradingView.com
