Ethereum co-founder Vitalik Buterin said that the new “crypto winter” could help the industry become stronger. However, he is not yet sure that this period has really begun.
In an interview with Bloomberg, Buterin emphasized that in fact, people “deeply immersed in the cryptocurrency industry” welcome periods of a “bear market”. This allows you to get rid of weak projects, and also reduces the level of “hype”.
“They welcome crypto winters. When prices are constantly rising, this, of course, makes people happy, but at the same time attracts a huge number of short-term speculative traders,” said the Ethereum co-founder.
The last “crypto winter” ended at the beginning of 2019, and the sharp growth of the cryptocurrency market began in the fall of 2020. However, after reaching a record capitalization in November 2021, the market began to decline. It is not yet clear whether this is really a long “crypto winter”, or just a temporary decline for a set of positions.
As Buterin admitted, he was surprised and impressed by the growth of the cryptocurrency market. This led to the fact that significant funds poured into the industry, and many new projects appeared, but not all of them are really important and useful for the industry.
“It is in the winter that many such projects disappear, and you see only reliable, important projects, with well-thought-out business models and a close-knit team,” the developer noted.
Earlier, Buterin spoke at the ETHD conference in Denver and touched on the topic of blocking the bank accounts of protesters in Canada. According to him, it is cryptocurrencies that can help in such situations.
Source: Bits
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