Ethereum Researcher Highlights Bitcoin’s Security Budget Weakness
Ethereum researcher Justin Drake has recently highlighted the weakness of Bitcoin’s security budget, saying that the cost of a 51% attack is much lower compared to Ethereum.
Drake estimated that such an attack on Bitcoin could cost around $10 billion, while he noted that a similar attack on Ethereum would be much more costly thanks to its Proof-of-Stake (PoS) mechanism.
In order to attack the Ethereum network, Drake said it would be necessary to seize more than 50% of the staked ETH, which is currently worth approximately $44.8 billion, and that this figure could increase further with market fluctuations.
Drake’s comments are in line with the notable posts made by Grant Hummer, co-founder of Ethereum-focused marketing and product firm Etherealize, on the X platform.
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Hummer used the following expressions in his post:
“With all due respect, BTC is completely drained by its security budget. A 51% attack on BTC today would cost just $8 billion. When that number drops to $2 billion (i.e. when BTC’s security market cap is 0.1% of asset market cap), such an attack becomes almost certain. This will become a visible reality in the next decade. ETH is the only truly decentralized crypto asset that can become the internet’s store of value (SoV).”
Hummer said that Ethereum’s higher security cost is also an advantage, and continued:
“Securing your data with a global decentralized network with thousands of validators and around $100 billion in staked security is certainly more expensive compared to the chains a few VCs run on AWS. But I know which one I prefer for critical data.”
*This is not investment advice.