For a long time, crypto-money has tried to present itself to society as an alternative to traditional Fiat money. An attempt to return control over finance to the consumers themselves, through virtual, decentralized and unmanipulative currencies. However, sometimes a certain centralization is introduced in some crypts. For this reason, Riccardo Spagni accuses Ethereum of copying the Federal Reserve in the Tweet of the Day.
Ethereum enthusiasts accumulate about 80% of ETH’s supplies for ETH 2.0 staking
The Federal Reserve and Ethereum
Since their birth, cryptomonies have been the declared enemies of the Federal Reserve in particular, but of all central banks in general. So, the explicit goal behind Satoshi Nakamoto’s creation of Bitcoin. was to prevent any government or financial institution from having total control over the currency used by citizens.
Because of this, Bitcoin introduced the Halving and Limit on BTC issuance, as a way to avoid oversupply and inflation in the currency. However, other crypto-currencies such as Ethereum decided to take a different path in regulating their liquidity in the market.
Thus, in the case of ETH, it is the Bitcoin Profit Foundation itself that is in charge of setting an inflation target in the Blockchain. Adjusting the difficulty of mining and therefore the emission of Ethereum within the crypto market. Following the techniques used by the Federal Reserve to control the number of dollars in circulation. Reason why crypto influencing Riccardo Spagni accuses ETH of copying the Federal Reserve:
„ETH’s commitment is to minimize emissions as much as possible. Congratulations, you have reinvented the Federal Reserve“.
Thus, Spagni would point out that with the control he has over the monetary issue in the Blockchain, Ethereum would be copying the Federal Reserve’s operation. In what would be a contradiction with values of the Blockchain such as decentralization, and democratization in financial management.