During an exclusive interview on CNN Business, Ethereum co-founder Vitalik Buterin shared his thoughts on the cryptocurrency market crash and the current state of the industry.
Buterin noted that bubbles occur in the cryptocurrency market, and we have seen this many times. Perhaps the fall of bitcoin and altcoins on May 19 marked the bursting of the bubble, and perhaps it will inflate for several more months – “it is impossible to predict.”
“We’ve already seen at least three big cryptocurrency bubbles. Bubbles often burst at the moment when something happens and it becomes clear that the technology has not yet reached the required development, “Buterin said.
At the same time, he stressed that since 2017, when the previous cryptocurrency bubble burst, the adoption of digital assets has increased significantly. Now cryptocurrencies are “close to the mainstream” and they are “no longer a toy.”
The Ethereum developer also noted that the development of Bitcoin may be hampered by talks about the dangers of mining for the environment. And here Ethereum will come to the fore, which in the coming years will switch to the Proof-of-Stake consensus algorithm, which will make it a “green” coin.
“The resource consumption of cryptocurrencies is definitely huge. Of course, it will not destroy the world, but this is a significant disadvantage. We are trying to move from consumption comparable to a small country to consumption like a village. If bitcoin remains on the old technology, there is a great chance that it will be bypassed, ”said Buterin.
The Ethereum co-founder also touched on the issue of regulation. He noted that at the current level of cryptocurrency development, a full-scale ban on the industry is unlikely. However, regulators “can definitely make life much more difficult for those in the cryptocurrency industry.”
Earlier, Buterin sold a significant portion of the dog-themed tokens and donated the proceeds to charity. He later destroyed 90% of his SHIB token stocks and urged the public not to transfer new tokens to him, but to send them to charities immediately.
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