PlanB criticized Ethereum as a "shitcoin"

59On April 20, the crypto community was revived when PlanB – an analyst known for his Stock-to-Flow (S2F) model – suddenly criticized Ethereum fiercely on platform X. In the post, he did not hesitate to call ETH a "shitcoin", while declaring that the world's second-largest blockchain platform is "no longer promising".

Revenge After 3 Years

Back in June 2022, Vitalik Buterin – the co-founder of Ethereum – publicly criticized PlanB's S2F model as a "huge failure" and "a dangerous illusion for investors." That comment sparked a fierce reaction from the Bitcoin community.

Nearly three years later, PlanB seems to play the "gentleman's revenge is not too late after 10 years" card by reusing Vitalik's own arguments. He wrote:

"Ethereum is really no longer promising... Shitcoins like ETH - which are centralized, premined, use PoS, and have arbitrary supply schedules - are harmful and deserve to be ridiculed."

Accompanying that are charts showing the sharp decline in the ETH/BTC exchange rate and the uneven distribution of ETH supply – aimed at reinforcing his viewpoint.

PlanB presents a series of reasons to criticize ETH:

Mixed reactions from the community

Immediately after PlanB's post, a series of influential accounts in the community spoke out, creating a heated debate:

Satoshi Club acknowledges that ETH is underperforming, but argues that calling ETH a "shitcoin" is excessive. PlanB immediately responded:

"Ethereum qualifies as a shitcoin in every aspect."

Leo Lanza strongly rebutted: "ETH is actually more decentralized than BTC when considering the distribution of supply." He argued that the drop in ETH price is due to the weakening of global capital flows, not due to technical factors.

Danny Marques does not support ETH as an investment, but emphasizes that stablecoins on Ethereum processed $27.6 trillion in transactions in 2024 – highlighting the crucial role of ETH in DeFi.

Two paths, two philosophies

The debate once again reflects the core differences between Bitcoin and Ethereum. While BTC is likened to "digital gold" – focusing on simplicity, security, and value storage, ETH, on the other hand, aims at a flexible platform for smart contracts, DeFi, and Web3.

According to data from Lyn Alden, Bitcoin has experienced price volatility in sync with global liquidity 83% of the time. This helps explain partly why ETH – which is considered a riskier asset – is negatively impacted when liquidity tightens.

The verbal battle between PlanB and the Ethereum community is not just a personal clash, but represents two opposing ideologies in the blockchain world: on one side are the Bitcoin maximalists, and on the other are those who believe in the scaling potential of Ethereum.

Although ETH is going through a difficult phase, its DeFi and NFT ecosystem still plays a crucial role in the new financial infrastructure. Meanwhile, Bitcoin continues to assert its position as the top safe-haven asset.

The debate will continue. The question is: Can Ethereum withstand the pressure and prove its long-term value, or will Bitcoin continue to dominate absolutely? Time will tell.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

Thạch Sanh