Ethereum co-founder Vitalik Buterin chooses to look on the bright side as cryptocurrencies are increasingly likely to be in the early stages of another crypto winter.
Ethereum inventor compares another bear market
Prominent Canadian-Russian programmer, in a recent interview with Bloomberg, said that people in business who actually make something will “welcome” to another bear market. expressed. According to Buterin, falling prices could drain the speculative surplus in the crypto market:
They embrace the bear market because while massive long-term price increases make many people happy, they also tend to attract a lot of short-term speculative interest.
Buterin thinks that many existing altcoin projects will fail during a fierce bear market and only the most resilient will survive.
Ethereum and Bitcoin are experiencing another macroeconomic decline
As we quoted by Kriptokoin.com, the crypto money market saw a significant decline this week due to macroeconomic factors such as the Russia-Ukraine tension and Bitcoin last year. It fell below $39,000 in hours. The world’s most valuable cryptocurrency is under significant pressure and has returned most of its gains after surging to $45,850 on Feb. As a result, Bitcoin is trading 44.56% below its November ATH.
Ethereum (ETH) is currently trading 46% below the ATH level. Buterin’s sentiment echoes Tim O’Reilly’s previous words, credited with popularizing the phrase “Web 2.0.” O’Reilly recently compared the current state of the cryptocurrency market to the dot-com craze of the late 1990s and stated that “Web3” will only be possible after another cryptocurrency crash. The computer guru denounced the massive valuations of the cryptocurrency industry, which he compared to the Pets.com era.
The next dot-com bubble?
Hundreds of millions of dollars were spent on cryptocurrency ads during the Super Bowl, bringing back memories of the dot-com boom. Many skeptics fear that crypto firms will suffer the same fate as internet companies in the early 2000s, when stock prices fell. Buterin believes that even as prices fall, a bear market can actually benefit the broader industry.
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