Blockstream computer scientist and CEO Adam Back compared Ethereum and other altcoins to Ponzi today on Twitter:
“Bitconnect, Charles Ponzi, Ethereum, Onecoin, Cardano, Ripple, Bernie Madoff, Stellar, Dan Larmer. They all look very similar to me. “
Charles Ponzi and Bernie Madoff are two of the most famous creators of Ponzi systems, while Bitconnect and OneCoin are cryptocurrency projects that have been recognized as pyramids. Back compared such schemas to altcoins like Ethereum, Ripple and Stellar, along with “Dan Larmer”, possibly a reference to Bitshares and Steem creator Dan Larimer.
Back was asked by TV journalist Layah Heilpern if he thought Ethereum was a scam or if it added value to the ecosystem as DApps.
“Well, 70% of those previously dug say it all. Which is the bigger scam, Ripple or Ethereum. “
Ethereum co-founder Vitalik Buterin responded to the taunt, calling Back’s views “tired of old propaganda”:
Reciting tired old propaganda is becoming less and less effective every day. Ethereum is rising, proof of stake and sharding are rising, and rollups are here, all through a large distributed ecosystem working in parallel. The tides of history will not be favorable to maximalism. https://t.co/PZ11XR2Pre
– vitalik.eth (@VitalikButerin) August 6, 2020
This is not the first time that the inventor of HashCash proo-of-work has aimed a missile at Ethereum. In another twitter exchange last November, he compared Ethereum to the now defunct biotech startup Theranos, which created a fake medical machine.
Back argued that management had gone too far to advertise what it could do while misrepresenting technological results. He also added that Theranos was “as dirty as Ethereum.”
The IT specialist from the very beginning was a bitcoin enthusiast. He was even linked to BTC creator Satoshi Nakamoto several times. Apparently he once claimed to have had a beer with him in London.
Do bitcoiners have anything to worry about?
It’s not hard to imagine that there could be a link between the sharp spike in Ethereum’s price this month and the resurgence of true BTC followers.
Etereum prices have more than doubled since the start of the year, with most of this increase taking place in the past month. Bitcoin has appreciated in price as well, but not that much. The signal for Ethereum was the hope that the long-awaited first shift of ETH 2.0 to the proof-of-stake consensus would commence within a few months. If successful, Ethereum will eventually be able to handle exponentially more transactions than Bitcoin.