An expert analyst, Plan B, has taken to Twitter to list Ethereum utility and why it can possess value for its utility and not scarcity.
While giving Ethereum utility, Plan B gave major reasons why Ethereum can be compared to Bitcoin using its value. He is widely known for the way he sees Bitcoin as a stock of flow model.
The tweet was a response to Nuggets CEO and crypto analyst, Alex Saunders who said he had updated an Ethereum stock of flow model of his own.
According to Plan B, he was not able to discover anything after carefully reviewing the Ethereum stock of flow value. He came to that conclusion after observing that Ethereum’s total supply doesn’t have a fixed figure while Bitcoin’s fixed figure is 21 million.
Plan B lists some of Ethereum utility
According to the analyst, he said only the founder of Ethereum, Vitalik Buterin, has a say on what happens to the asset in the future.
Furthermore, he said that even though the total amount of Ethereum can be changed, it can still be increased in the future, which is unlikely where Bitcoin is concerned.
Listing another one of Ethereum utility, Plan B also said he discovered that ETH tokens are always premined, a major reason why he is not a big fan of the digital asset.
The major reason why the digital asset turns me off is that anything can be done to it in the future.
The total supply figure of Ethereum
Furthermore, Plan B said another Ethereum utility is the basis of its value and not scarcity. He reasoned that if the ETH supply can be reduced, it means that it can be expanded later on.
The analyst says an Ethereum node can be deployed by a third party to find out the present supply figure. He further said that even though the developers are planning on deploying ETH 2.0, it would do little to answer the question at hand.
Plan B also said the reason why one cannot use the Ethereum stock of flow model is that it is not scarce. ETH founder Vitalik Buterin responded to the same query, saying that miners cannot impact the supply rules but that can be done only via a user consensus.