Adam Back says Ethereum-style smart contracts and restaking create extreme leverage and contagion risks akin to privatized money printing.
Bitcoin advocate Adam Back stated that virtual machine-based smart contracts, such as those on Ethereum, introduce excessive complexity and security vulnerabilities. He noted that AI tools enable attackers to systematically exploit DeFi weaknesses, amplifying risks in the sector.
Back highlighted that restaking and rehypothecation mechanisms build extreme leverage, comparing the process to privatized money printing. These practices heighten contagion risks across decentralized finance platforms, contrasting with Bitcoin’s simplicity as hard money.
He recommended cold storage or reputable ETFs as the safest strategies for Bitcoin holders, adding that institutional ETF allocation remains in its early stages.