Ethereum blockchain co-founder Vitalik Buterin is of the opinion that investors might be experiencing a “crypto winter”, but it’s not all bad news for them, points to the longer-term benefits of the big pullback in cryptos. In a recent interview, the Canadian-Russian programmer stated that industry players who are actually building things would “welcome” another bear market as falling prices will help flush out speculative excess in the wider crypto space while shedding light on the resilience of stronger projects.
In an interview published by Bloomberg, Buterin goes on to say the ongoing crypto downer could lead up into another digital asset universe as prices are currently low enough — hinting at big opportunities with significant gains potential for players when things pick back up like before.
“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,” Buterin told Bloomberg.
With the price of Ether down by almost half since November, and in a case of what could be the crypto cream rising to the top, Buterin 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.”
The crypto winter maybe just a seasonal chill for this emerging industry, but Ethereum founder Vitalik Buterin told Bloomberg that he was “surprised” by the market’s move over last year. However, he is unsure whether cryptocurrencies remain in their second winter or simply reflects volatility found within broader economies.
With the recent rise in prices, many people have seen their assets increase exponentially. CoinGecko is tracking 12,588 different tokens and reminds investors that there isn’t just a bull market for every crypto asset there is. However, fraud and manipulation in this market can hurt investors if used incorrectly or blindly follow leaders like sheep and to get a rich quick scheme without understanding what they are getting into.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.