Ethereum Founder Vitalik Buterin Welcomes Another Crypto Winter
Ethereum blockchain co-founder and prominent cryptocurrency leader Vitalik Buterin said investors may be experiencing a “crypto winter,” but it’s not all bad news for them. He went on to say that this could lead to a different universe of digital assets as prices are currently low enough, which would present opportunities with significant profit potential when things pick up as before.
In an interview with Bloombergsaid Buterin;
Many people who are deep into crypto and mostly make things welcome the bear market. They welcome the bear market, because if prices soar so much in the long run – of course a lot of people are happy about that – but it takes a very short period of time. Speculative attention.
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The cryptocurrency market collapsed after hitting an all-time high in early November. Due to the expectations of investors and speculators of positive economic news coming out of Covid. As a result, the Bloomberg Galaxy Crypto Index fell about 45% from its peak, while Ether fell 40%.
With the recent price increases, many people have seen their wealth increase exponentially. CoinGecko tracks 12,588 different tokens, reminding us that this is not just a bull market. It has also been one for cryptocurrency. However, fraud and manipulation in this market can harm you if used incorrectly or blindly follow leaders like sheep. And to quickly get a rich schedule without understanding what they are getting into.
Pumps & Dumps occur when traders try to monetize the losses of others by inflating prices before selling at lower levels, creating fear among investors who believe it may happen again soon, driving them to safety.
Crypto Winters as an Opportunity
According to a 28-year-old crypto billionaire;
Winter is the time when most of these applications go out. This allows you to see which projects are sustainable in the long term, such as in their models and their teams and their people.
Ethereum price has been falling since Feb 16 | Source ETH/USD chart on Tradingview.com
The crypto winter may just be a seasonal cold for this emerging industry, but Ethereum founder Vitalik Buterin told Bloomberg he was “surprised” by the market’s movement last year. However, he is unsure whether crypto will continue into its second winter or simply reflect the volatility found in broader economies.
Related literature | Crypto Winter Thaws With Bitcoin And Ethereum Rebound Signal
In Denver on February 12, he said;
Crypto markets seem to be flipping switches of this particular group controlled by a specific group of participants. It is completely separate from traditional markets that increasingly behave as if they were part of a regular financial market.
Buterin added that Crypto Winter is an opportunity to make some important changes for the better.
The dangers of using cross-blockchain bridges were exposed this year when the popular Wormhole crypto protocol was hacked for more than $300 million. In January, Buterin warned that these types of bridges could be dangerous. It can lead to users’ money getting trapped in smart agreements without their knowledge or consent. So-called smart agreements are programs that issue parallel cryptocurrencies on two different blockchains.
Buterin’s Focus on Ethereum Scaling
Ethereum is working to make its blockchain faster and more scalable. Investors often criticize the popular blockchain because transactions can be slow and expensive with today’s technological limitations. But now there are efforts that could lead to some much-needed improvements for this particular ecosystem.
Finally, Buterin added;
If everyone tries to use blockchain again, no, actually we don’t want everyone to find out again that there is not enough space on the chain for everyone.
Featured image from Pixabay, chart from TradingView.com