The crypto market is going towards “crypto winter” where the prices are going down leading to potentially another bearish period for digital assets. However, the current downwards trend in cryptocurrency value may not necessarily be bad news.
Ethereum’s Co-Founder Finds Positives in Crypto Winter
One of the most respected people in the industry co-founder of the Ethereum blockchain, Vitalik Buterin, seems to think so. Buterin says that many of those who are heavily involved with crypto, especially on the building side of things, are looking forward to the more bearish market. The long bullish periods drive prices up, making a lot of people happy. Nevertheless, it also attracts plenty of short-term speculative investments.
Interestingly, most of the major cryptocurrencies are currently going through a particularly rough period. Back in November, digital assets record high values. However, they experience a steep fall since then. As a result, dipping around 45% from the all-time high. Ethereum’s native currency, Ether, has drops 40% in that period. Furthermore, the main reason for this is they expect a reduction of stimulus worldwide economies receives amid the Covid-19 pandemic.
Crypto Winter 💂 Explained 💂 Crypto Education Video💂
The Last Crypto Winter
The last crypto winter happened in 2018. Ever since then, the crypto market has been booming. Established tokens have seen a sharp rise in prices, while many new digital assets appeared. Ultimately, this made a lot of people a lot of money. However, many have been suffering significant losses. Mainly, because of the “pumps and dumps” of certain crypto applications.
Pump And Dump Schemes
Indeed, these types of manipulative schemes were mostly run by people who joined the crypto space to make a large profit in short term. Vladimir Buterin says that crypto winter exposes the true nature of crypto applications. Many of those scheming applications fall away, while the established, sustainable, and long-term projects survive. Moreover, he adds last year’s movements on the crypto market surprises him.
Crypto Space Now More Like Traditional Financial Markets
Buterin is still not sure whether we’re in for another crypto winter or the crypto space is only reflecting the volatility of broader markets. It seems that the crypto market is no longer a small space separated from the traditional markets and controlled by a small group of people. Lately, it’s becoming clear that the market of digital assets is starting to take the shape of mainstream financial markets. Besides, the Russian-Canadian crypto billionaire believes that crypto winter may provide some leeway for crypto developers to concentrate their efforts on improving the technology.
Outspoken 28-year old co-founder of Ethereum
The 28-year old co-founder of Ethereum is rather outspoken about the risk of using cross-blockchain bridges. These protocols use smart contracts to transfer one cryptocurrency from one blockchain to parallel crypto coins on the different blockchains. He spoke of it last time in January. Recently, he was proven right with what happened to Wormhole. The popular crypto protocol was hacked and lost over $300 million.Remember, watch or listen to our podcast.
Scaling Ethereum
Lately, Buterin’s focus has been on scaling Ethereum. Furtermore, the transactions on this blockchain are often expensive and slow which drew some criticism. Moreover, Vitalik Buterins is now heading efforts to make Ethereum more scalable by adding the most significant upgrades in its history. As a result, the goal is to make Ethereum more accessible and capable of providing space for everyone.
