Ethereum co-founder Vitalik Buterin says we may be in a “crypto winter”. But, it’s not all that bad news, he says.
Buterin welcomes bear market
Buterin says that because the prices of crypto coins are currently relatively low, there is a great profit potential. In an interview with Bloomberg zei Buterin:
“The people who are fully into crypto are welcoming a bear market,” Buterin said during an interview with Bloomberg. The huge price increases have made many investors happy, but a bear market opens up new opportunities.”
The crypto market collapsed after hitting an all-time high in early November. The price fall was first caused by the news about a new Covid variant. As a result, the Crypto Index fell about 45% from its peak. Despite the price drop, the crypto market has performed great in recent years and made many investors rich.
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The bad apples are falling during a crypto winter
Vitalik Buterin went on to say:
“Winter is the time when most of the bad apples fall out of the crypto market. This allows you to see which projects are sustainable in the long term, such as in their models and their teams and their people.”
Whether the crypto winter will last for a long time remains to be seen, according to the founder of Ethereum. It could well be that prices will skyrocket again when all uncertainty has been removed from the market.
Buterin added that the crypto winter is an opportunity to make some important changes for the better. The dangers of using cross-blockchain bridges were brought to light this year. Then became Wormhole’s popular crypto protocol hacked for more than $300 million. In January, Buterin warned that these types of bridges could be dangerous. It can lead to users’ funds getting trapped in smart contracts without their knowledge or consent. So-called smart contracts are programs that issue parallel cryptocurrencies on two different blockchains.
Ethereum needs to become more scalable
Ethereum is working to make its blockchain faster and more scalable. Investors often criticize the popular blockchain because transactions can be slow and expensive with today’s technological limitations. But now there are efforts that could lead to some much-needed improvements for this particular ecosystem.
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