Jakarta, CNBC Indonesia – The price movement of cryptocurrencies such as Bitcoin, Ethereum, Dogecoin and others is in a downward trend which can make many investors lose money. However, Ethereum blockchain co-founder Vitalik Buterin has a different view of this situation.
“People who are into crypto, and especially building something on top of it, many of them welcome the downward trend of the market (bear market),” said Vitalik Buterin, Bloomberg News reported, Sunday (20/2/2022).
“They welcome the downward trend because when there is a period of reversal prices will also go up a lot – this obviously makes a lot of people happy – but it also tends to invite a lot of short-term losses because of the speculation.”
Crypto prices are in a downward trend after touching record highs in early November last year as investors and speculators took steps to anticipate the reduction of a number of global economic stimulus and global markets after the Covid-19 pandemic. The Bloomberg Galaxy Crypto Index notes that cryptocurrency prices have fallen 45% since hitting an all-time high in November.
Since the last “crypto winter” in 2018, the sector has grown rapidly. Many stories of millionaires or billionaires appear overnight. However, there are also pumps and dumps fraud schemes that often make investors robbed of money.
“Winter (downward price trend) is a time when many of those apps crash and you can see which projects are really sustainable in the long term, both in their model and in their team and people,” said the 28-year-old crypto billionaire. that year.
He also added that crypto winter can also help those who are building projects in crypto to focus on improving the technology.
Buterin has shifted his focus to improving Ethereum in recent years. The popular blockchain has long been criticized because transactions on Ethereum can be slow and expensive. The Ethereum Buterin Foundation is leading the latest effort dedicated to increasing blockchain scalability with perhaps the most important upgrade in Ethereum history.
“When everyone is back trying to use blockchains,” Buterin said. “We don’t want them to find out again that no, actually, there isn’t enough room in the chain for everyone.”
(roy/roy)
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