Bitcoin Maximalist Michael Saylor Says Ethereum Could Crash Like LUNA

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Ethereum has come under fire from bitcoin maximalist and former MicroStrategy CEO Michael Saylor, who compared the network to LUNA, which tragically collapsed in May 2022. The effects of the collapse continue to haunt the entire market of crypto, playing a role in the collapse of many notable crypto companies. Now, Saylor has pointed to Proof of Stake (PoS) networks like Ethereum as carriers of crash possibility like the infamous Terra.

Will Ethereum break like LUNA?

In a post on Twitter, the former CEO of MicroStrategy pointed out that Ethereum was at risk of seeing a LUNA-level event. The argument was basically a comparison of bitcoin with other cryptocurrencies such as Ethereum, which Saylor says are unstable.

The tweet included a link to a Trader University YouTube video that explained the Ethereum blockchain and why there might be a problem with the PoS network. This highlights the fact that the Ethereum network depends on staked ETH to function, which at this point is seeing a lot of coins being staked as there is no way to withdraw them. However, Matthew R. Kratter points out that once the code to withdraw is available and if the price of cryptocurrencies drops further, then more users will be inclined to withdraw their coins.

At the end of the video, Kratter then calls on regulators to look into PoS networks such as Cardano and Ethereum to determine if they pose a risk of catastrophic implosions. This is in order to prevent another event like the collapse of LUNA.

Saylor then compares the network to bitcoin in his tweet saying, Bitcoin is designed to be stable, robust, and increasingly secure and efficient over time based on advances in proof-of-work and ASIC technology. In contrast, Proof of Stake protocols are inherently unstable, inefficient, opaque and risky due to their fragile design, he added.

ETH plunges as speculation gathers momentum | Source: ETHUSD on TradingView.com Draw ire from supporters

Michael Saylor has always been a vocal bitcoin maximalist, preferring the pioneering cryptocurrency over all others in the space despite their performance. This isn’t the first time Saylor has rejected Ethereum, but his most recent attempt has drawn the ire of ETH supporters.

A user points to MicroStrategys bitcoin investments that were made under his direction. At current prices, the company is incurring unrealized losses on its BTC holdings, a similar investment in ETH would have generated a profit for the company, as well as passive income if the coins had been staked.

lol Saylor… what a HUGE mistake you made… pic.twitter.com/KvGg65nRfw

— $ETH (@Dark86268590) December 14, 2022

Nonetheless, Saylor remains a strong supporter of bitcoin and his Twitter page is proof of that. One of his most recent tweets includes an image of a bitcoin light bulb with the caption Bitcoin is Eternal Light.

#Bitcoin is eternal light. pic.twitter.com/4Ht8EgpXkC

— Michael Saylor (@saylor) December 14, 2022

Featured image from Cointape, chart from TradingView.com

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