Ethereum blockchain co-founder Vitalik Buterin says the digital-asset universe may benefit from the dip in coin prices.
The recent coin price retreat is casting a chill on investors known as another crypto winter.
However, the sector has boomed since the last “crypto winter” of 2018.
Crypto ‘welcomes’ another winter
Vitalik said in an interview with Bloomberg, “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.”
Furthermore, the Bloomberg Galaxy Crypto Index fell about 45% from its all-time high. Around the same time, the native currency of the world’s most widely used blockchain, Ether, slumped nearly 40%.
Moreover, crypto applications had market manipulation schemes run by people involved for short-term crypto profits.
The latest crypto bull run witnessed various investments making many millionaires and billionaires overnight.
However, Buterin is skeptical of crypto entering another winter or is a victim of the volatility in broader markets.
Will the digital-asset universe benefit from a dip in coin prices?
The 28-year old crypto billionaire said, “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.”
Furthermore, on February 12, from Denver, he said, “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.”
Moreover, he added that those building projects in crypto focus on improving technology and can benefit from the crypto winter.
What is Ethereum’s future?
Popular crypto protocol Wormhole hacked for over $300 million, was followed by Buterin’s comments.
Furthermore, Buterin focuses on scaling Ethereum due to its slue and expensive transactions.
Ethereum is making history as Vitalik improves blockchain’s scalability with significant upgrades.
Buterin said, “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.”
While coin prices retreat, the digital-asset universe may benefit from it. Ethereum co-founder, while welcomes the crypto winter, he remains skeptical about market volatility.