Coins: 14,794
Exchanges: 1,138
Market Cap: $2.446T 2.8%
24h Vol: $81.622B
Gas: 8 GWEI
Go Ad-free
Coverage
TABLE OF CONTENTS

Gavin Andresen: Recent Rise in Ethereum Should Be a Warning to Bitcoin

Kyle Torpey -

For at least half a year, Bitcoin Foundation Chief Scientist and former Bitcoin Core lead maintainer Gavin Andresen has espoused that the Bitcoin development process has become too slow. In a recent AMA (Ask Me Anything) on Chinese Bitcoin community website 8btc, Andresen claimed that potential Bitcoin users may look for alternatives, such as Ethereum, if scaling improvements, specifically an increase in the block size limit, are not implemented in Bitcoin soon.

People May Search for Alternatives to Bitcoin

During the recent AMA, Gavin Andresen was asked whether it is normal for “more complex” solutions, such as Segregated Witness and the Lightning Network, to be prioritized over a “simple” increase in the block size limit. Andresen responded by saying these sorts of improvements may take longer to implement than an increase in the block size limit. He added:

“The risk is that people will not be patient and will switch to something else; the recent rapid rise in developer interest and price of Ethereum should be a warning.”

Lately, Andresen has been a vocal supporter of Bitcoin Classic, which would activate a block size limit increase to 2 MB via a hard fork 28 days after 75 percent of the network hashrate has signaled their support for the change to Bitcoin’s consensus rules. Up to this point, miners have opted to stick with Bitcoin Core’s scaling roadmap. Support for Bitcoin Classic currently sits at roughly 5 percent of the network hashrate.

In another part of the AMA, Andresen went as far as to say some Bitcoin Classic-supporting startups may hedge their bets by supporting other cryptocurrencies if Bitcoin Core continues to maintain a high level of support from the network hashrate. He explained:

“We have already seen companies like Kraken support alternative currencies (Kraken supports Litecoin and Ether); if there is no on-chain scaling solution accepted by the network, I think we will see more companies ‘hedging their bets’ by supporting other currencies that have a simpler road map for supporting more transactions.”

It should be noted that Kraken is a trading platform, so the implications of their acceptance of alternative cryptocurrencies should be viewed in a different light than a Bitcoin wallet provider, such as Blockchain or Xapo, opening themselves up to multiple alternatives to Bitcoin. Various altcoins have been traded on exchanges for years.

During the AMA, Andresen also mentioned the need to create a welcoming environment for new Bitcoin developers on multiple occasions. For example, he stated:

“I invite capable programmers from anywhere, including China, to help any of the teams working on open source Bitcoin software, whether that is Classic or Core or Unlimited or bitcore or btcd or ckpool or p2pool or bitcoinj.”

Andresen’s Thoughts on Ethereum

Although Gavin Andresen pointed to Ethereum’s recent rise in popularity as a warning sign for Bitcoin, that does not mean he is bullish on the smart contract-focused blockchain. When asked for his thoughts on Ethereum, Andresen stated, “I think most of the interesting things you can do with Ethereum you can also do with multi-signature Bitcoin transactions.”

A common viewpoint from Ethereum critics is that, although there are currently more than 200 Ethereum-based decentralized applications in development, there aren’t any use cases that make any sort of practical sense in the real world. Andresen appeared to show sympathy with this view, as he noted, “I haven’t seen a really great use of Ethereum yet.”

Andresen also noted a potential security risk involved with complex smart contracts on the Ethereum blockchain:

“I think there will be a big problem with Ethereum smart contracts that are designed to steal people’s money, because very few people will have the skill necessary to tell if a complicated smart contract is correct.”

Having said that, standards are currently being developed for Ethereum-based smart contracts. These standards are intended to make contracts much easier to audit and understand before they are used. One could also say that this issue already exists in Bitcoin -- perhaps to a lesser extent -- where users are unsure if an application or service will safely handle their bitcoin. There have already been plenty of thefts by nefarious actors in the Bitcoin space.

Andresen Prefers Sidechains Over Altcoins

Gavin Andresen also discussed his preference for sidechains over blockchains with their own altcoins during his AMA. He claimed that some people are interested in altcoins with no technological advantages over bitcoin whatsoever (to his bewilderment), but there are some alternative cryptocurrencies, such as Ethereum and Zcash, that are more interesting.

In terms of those “more interesting” altcoins, Andresen added:

“I would rather they were done as sidechains to the Bitcoin blockchain. I think you should have a very good purpose for creating a new currency, and if you don’t have a good purpose, you should use the Bitcoin currency.”

Andresen also noted that he would even like Dogecoin more if it were a Bitcoin sidechain. He referred to these sorts of altcoins as a “sneaky way” to increase Bitcoin’s 21 million coin limit.

In terms of Ethereum specifically, Andresen noted, “I’m watching the rootstock.io project, which brings Ethereum contracts to Bitcoin.”

CoinGecko's Content Editorial Guidelines
CoinGecko’s content aims to demystify the crypto industry. While certain posts you see may be sponsored, we strive to uphold the highest standards of editorial quality and integrity, and do not publish any content that has not been vetted by our editors.
Learn more
Want to be the first to know about upcoming airdrops?
Subscribe to the CoinGecko Daily Newsletter!
Join 600,000+ crypto enthusiasts, traders, and degens in getting the latest crypto news, articles, videos, and reports by subscribing to our FREE newsletter.
Tell us how much you like this article!
Kyle Torpey
Kyle Torpey
Kyle is a freelance writer who has been interested in bitcoin since 2011. His work has been featured on Business Insider, VICE Motherboard, Let's Talk Bitcoin, RT's Keiser Report, and many other media outlets. Follow the author on Twitter @kyletorpey

More Articles

Select Currency
Suggested Currencies
USD
US Dollar
IDR
Indonesian Rupiah
TWD
New Taiwan Dollar
EUR
Euro
KRW
South Korean Won
JPY
Japanese Yen
RUB
Russian Ruble
CNY
Chinese Yuan
Fiat Currencies
AED
United Arab Emirates Dirham
ARS
Argentine Peso
AUD
Australian Dollar
BDT
Bangladeshi Taka
BHD
Bahraini Dinar
BMD
Bermudian Dollar
BRL
Brazil Real
CAD
Canadian Dollar
CHF
Swiss Franc
CLP
Chilean Peso
CZK
Czech Koruna
DKK
Danish Krone
GBP
British Pound Sterling
GEL
Georgian Lari
HKD
Hong Kong Dollar
HUF
Hungarian Forint
ILS
Israeli New Shekel
INR
Indian Rupee
KWD
Kuwaiti Dinar
LKR
Sri Lankan Rupee
MMK
Burmese Kyat
MXN
Mexican Peso
MYR
Malaysian Ringgit
NGN
Nigerian Naira
NOK
Norwegian Krone
NZD
New Zealand Dollar
PHP
Philippine Peso
PKR
Pakistani Rupee
PLN
Polish Zloty
SAR
Saudi Riyal
SEK
Swedish Krona
SGD
Singapore Dollar
THB
Thai Baht
TRY
Turkish Lira
UAH
Ukrainian hryvnia
VEF
Venezuelan bolívar fuerte
VND
Vietnamese đồng
ZAR
South African Rand
XDR
IMF Special Drawing Rights
Cryptocurrencies
BTC
Bitcoin
ETH
Ether
LTC
Litecoin
BCH
Bitcoin Cash
BNB
Binance Coin
EOS
EOS
XRP
XRP
XLM
Lumens
LINK
Chainlink
DOT
Polkadot
YFI
Yearn.finance
Bitcoin Units
BITS
Bits
SATS
Satoshi
Commodities
XAG
Silver - Troy Ounce
XAU
Gold - Troy Ounce
Select Language
Popular Languages
EN
English
RU
Русский
DE
Deutsch
PL
język polski
ES
Español
VI
Tiếng việt
FR
Français
PT
Português
All Languages
AR
العربية
BG
български
CS
čeština
DA
dansk
EL
Ελληνικά
FI
suomen kieli
HE
עִבְרִית
HI
हिंदी
HR
hrvatski
HU
Magyar nyelv
ID
Bahasa Indonesia
IT
Italiano
JA
日本語
KO
한국어
LT
lietuvių kalba
NL
Nederlands
NO
norsk
RO
Limba română
SK
slovenský jazyk
SL
slovenski jezik
SV
Svenska
TH
ภาษาไทย
TR
Türkçe
UK
украї́нська мо́ва
ZH
简体中文
ZH-TW
繁體中文
Login to track your favorite coin easily 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Forgot your password?
Didn't receive confirmation instructions?
Resend confirmation instructions
IT'S FREE! Track your favorite coin easily with CoinGecko 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Password must contain at least 8 characters including 1 uppercase letter, 1 lowercase letter, 1 number, and 1 special character
Didn't receive confirmation instructions?
Resend confirmation instructions
Forgot your password?
You will receive an email with instructions on how to reset your password in a few minutes.
Resend confirmation instructions
You will receive an email with instructions for how to confirm your email address in a few minutes.
Get the CoinGecko app.
Scan this QR code to download the app now App QR Code Or check it out in the app stores
coingecko
Continue in app
Track prices in real-time
Open App