The Ethereum FUDBuster – An Attempt 1

Hey everyone, so I decided to take some time to address some of the common FUD that has been thrown into this subreddit with hopes it may help some newbies into ETH to at least understand the whole context to the FUD that is used usually by Bitcoin Maximalist.

I will definitely make mistakes, so I hope this can be something that everyone will critique so I can improve on it! So let's get on to it!

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ETH IS A PREMINED 'SHIT' COIN

• Premine refers to the issuance that happened before mining, this in itself is not necessarily a bad thing, unless it is done in such a way that a very small group of people benefits and causes a great inequality.
• The Ethereum sale lasted for 42 days. Link to the launch page of the sale for more information. The sale gave enough information and can be also arguably said to be more public and reached more people than when satoshi started mining bitcoin by posting it on the bitcointalk forum.
• Link to the results of the sale after 2 weeks. Interestingly, the result of the sale had a Gini coefficient that is lower than bitcoin's at the time, possibly indicating that initial ETH distribution is more equal than Bitcoin's distribution. This is of course assuming that every sale participant address is unique.
• Overall result is that 60 million of ETH is sold to the sale participants and 12 million is created for the Ethereum foundation to fund activities. (This is the premine). Some good data here. This is the part where bitcoin maxis will usually say that vitalik and co will dump their ETH on us, assuming of course these 72 million in ETH has not been moved at all and everyone who bought in has diamondhanded until now (SPOILER: This is a stupid argument).
• The 72 million premine accounts for about 61% of current ETH total supply (117 million at the time of writing). Again with the fact that this happened 7 years ago, the distribution of ether from that time since now has of course diluted the holdings of the initial sale participant. Though I must confess I do not have the data on that. If anyone can share some, that would be awesome.

ETH is a INFLATIONARY SHITCOIN with UNLIMITED SUPPLY

• Inflation or deflation is a neutral term, it depends on the goals of the underlying asset to decide whether it is good or bad. It is correct that we have unlimited supply, but that does not mean there will be unlimited ETH in circulation. This is neither a good or a bad thing.
• Ethereum has had a few forks that adjusted the rate of inflation since the genesis block. Historical changes to the issuance can be found here. The changes to issuance reflects ethereum's monetary policy of minimum necessary issuance.
• On contrast, it also does not mean that a limited supply is a good thing, for bitcoin for example, this raises concerns that when all 21 million of BTC is minted or when subsequent halvings have passed, there needs to be enough bitcoin transaction fees to incentivize miners to mine the chain and secure the network. Other coins like monero have tail issuance at the end of minting, that ensures miners are still compensated via a block reward component rather than just transaction fees. Only time will tell which is the best option.
• EIP-1559 introduces the necessary deflationary pressure to ETH, by burning ETH based on the demand on blockspace. This does not in itself make ETH deflationary, but it allows for the protocol to algorithmically adjust its own monetary policy by linking it to network usage. This eliminates the need for community consensus to be made to reduce issuance further up until the merge.
• The merge, whereby the consensus layer will be replaced by PoS will further reduce issuance, causing ETH inflation to significantly decrease! This is because it is less costly to run a PoS validator compared to a PoW miner, and hence we can reward them less to secure the network.

OK I need a break, probably will add more when I feel like it.Other points to talk about if anyone wants to help

• Nobody knows how many ETH there is
• Vitalik makes all decision in Ethereum changes
• Ethereum can reverse your transaction if coredevs feels like it (The DAO)
• No ethereum full node exists except archive node
• ethereum is too bloaty to run on low end hardware, unsustainable state growth
• PoS is shit compared to PoW
• Ethereum will never scale
• Gas fees are too expensive, nobody will use ETH (Spoiler, it is expensive because everyone is using it). It is bad, I agree, but it takes time to solve.