Reports have emerged that a BTC developer has presented defense for the digital currency amidst criticism directed at the Bitcoin scarcity index.
There are a multitude of factors that help to shape Bitcoin’s prominence and its value. Of these, the most talked of and controversial one is the ‘scarcity index’. This is a built-in feature of the coin that ensures that at any point, only 21 million Bitcoins are allowed to operate in the market.
Bitcoin developers and supporters have been forced to present a defense of the coin over this one feature, which has provided its enemies ample fuel for attack.
And this time, it’s Peter Todd, a prominent developer for the currency, that has been the latest figure to prop the currency up with this index at the centre of the argument.
Andrew Miller, a proponent of Bitcoin’s market rival ZCash, recent levelled criticism at the scarcity index of the cryptocurrency. According to him, the principle upon which BTC was built was quite irrelevant, and that scarcity was more of an inhibitor for a coin. He went on to say, this was a ‘joke’.
Peter Todd underlined the alleged hypocrisy of Miller’s criticism in a comment:
“Funny how Miller is pushing the ridiculous narrative that Bitcoin’s scarcity is a joke when he’s involved with Zcash: a crypto currency run by a single team funded directly by a dev tax that’s expires soon.”
Todd also explained the premise behind the scarcity principle, stating that it was something held together by users that were given the right to validate their currencies. This, according to him, made it much easier to operate software on the currency by oneself and hard for outside interference in the currency. He contrasted this with ZCash’s build structure, which he highlighted as being inefficient in this specific regard.