Ethereum as Money raises questions around decentralization, control, and monetary policy compared to Bitcoin’s fixed system.
Why Ethereum as Money Felt Right?
I know many of you bought Ethereum.
I did too. At one point, I genuinely believed it was the second best thing after Bitcoin. It felt early, accessible, and full of upside. Like I had finally found something before everyone else.
But the deeper I studied Ethereum as Money, the more uncomfortable things became. Not because Ethereum is useless, but because what it is and what it tries to be are very different things.
Ethereum as Money and Power Distribution
Ethereum today runs on Proof of Stake.
It sounds efficient on the surface. But when you look deeper, you see how power is distributed. The system rewards those who already hold large amounts of ETH. More coins mean more influence, more rewards, and more control over time.
This creates a compounding loop. Wealth grows faster for those who already have it. If you are starting from zero, you are not competing on equal ground. That is not what fair money is supposed to look like. It shifts the system from open participation to capital-based influence.
Ethereum as Money and Control
Another issue is governance.
Ethereum is not purely governed by code. It is influenced by developers, foundations, and large stakeholders. The transition from Proof of Work to Proof of Stake itself proves that major rules can change when enough consensus forms at the top.
This creates uncertainty. If monetary rules can be adjusted, then the system becomes flexible instead of predictable. Money, at its core, should be stable and reliable. When decisions depend on people rather than fixed rules, neutrality becomes harder to maintain.
If you want to explore these ideas in depth, you can read detailed analyses from Nakamoto Institute, Lyn Alden, and further breakdowns by Tomer Strolight and here.
Monetary Policy and Security Concerns
Ethereum’s monetary policy has changed multiple times.
From having no supply cap, to introducing burn mechanisms like EIP 1559, to changes in issuance after Proof of Stake. This makes the system dynamic, but also unpredictable. The idea of “ultrasound money” depends on continued network demand and high transaction activity.
If activity slows down, the supply dynamics change again. That makes it conditional money rather than fixed money.
There is also the question of security. Bitcoin relies on Proof of Work, which requires real-world energy, infrastructure, and cost. That cost acts as a barrier and strengthens the network. Ethereum removed that cost and replaced it with staking participation and fees. If participation weakens, the security assumptions also change.
Final Perspective
Ethereum is a powerful platform.
It enables applications, smart contracts, and innovation. But money is a different category. Money needs to be simple, predictable, and resistant to change.
I did not sell Ethereum because it failed.
I sold it because I understood what it actually is, and what it is not.
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