Vitalik Buterin, the co-founder of Ethereum blockchain, has recently highlighted how the current crypto winter could help the industry get stronger.
According to Buterin, in a new interview with Bloomberg, those who have been in the crypto ecosystem for years know that crypto winter, such as the current one, is beneficial to the cryptocurrency space.
Vitalik Buterin noted:
“The people who are deep into crypto, and especially building things, a lot of them welcome a bear market. They welcome the bear market because when there are these long periods of prices moving up by huge amounts like it does — it does obviously make a lot of people happy — but it does also tend to invite a lot of very short-term speculative attention.”
The Crypto industry has experienced massive growth since the last crypto winter of 2018. Currently, over 12,500 digital tokens are listed by the price tracking platform, CoinGecko, while over 17,000 digital assets are tracked by CoinMarketCap.
In the course of the interview, Vitalik Buterin added that “The winters are the time when a lot of those applications fall away and you can see which projects are actually long-term sustainable, like both in their models and in their teams and their people.”
According to Bloomberg, the young billionaire who said he’s surprised by the market trend since last year is not sure whether the market has entered another winter or the crypto industry is just replicating the situation in other markets.
“It does feel like the crypto markets kind of flip the switch from being this niche group that’s controlled by a very niche group of participants and it’s fairly disconnected to traditional markets into something that behaves more and more like it is part of the mainstream financial markets,” the report added.
Ethereum founder also pointed out that crypto winter can also help project developers focus on improving the technology.
In recent years, Buterin has shifted his focus on improving the scalability of the Ethereum blockchain, to make it faster and cheaper for everyone:
“When everyone is again trying to use blockchains. We don’t want them to discover yet again that no, actually, there isn’t enough space on the chain for everyone.”
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