The co-founder of Ethereum said that stablecoins have proven their worth as a means of payment by combining digitalization, privacy and the functionality of a fiat currency.
However, the co-founder of Ethereum believes that centralized stablecoins are not a long-term solution to protect against government control. Therefore, stablecoins run by decentralized autonomous organizations (DAOs) backed by risk-weighted assets (RAIs) such as DAI are less risky than stablecoins like RAI and LUSD.
To provide DAI, ether is used, placed in a smart contract and being a derivative of regular ETH. According to Buterin, the capitalization of the decentralized finance (DeFi) market is highly inflated, and he mainly relies on “persistent forms of income farming.”
Ethereum co-founder believes decentralized stablecoins are the most important DeFi product. Buterin highlighted prediction markets, which he believes are an important pillar of the crypto industry. He believes that this market, although it will not show multibillion-dollar bursts, will continue to grow steadily and become more useful over time.
Recently, Vitalik Buterin advised desperate traders to focus on technology, not on the fall of the cryptocurrency market.
Source: Bits
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