Vitalik Buterin, has described the current situation of cryptocurrencies as a bubble. Specifically, interviewed by CNN, he stated that in his opinion we are in a “crypto bubble” phase and obviously the question is when it will end.
“We’ve had at least three of these big crypto bubbles so far. It could be over by now, or it could be over in several months.”
Certainly, Vitalik Buterin, did not comment on whether Bitcoin’s recent fall around $ 30,000, was an indicator of the end of the crypto bubble. However, he said:
“Often the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet.”
He also indicated that the energy debate that revolves around Bitcoin mining requires it to adopt technological change.
“Resource consumption is definitely huge. It’s not the kind of thing that’s gonna break the world on its own. But, it’s definitely a significant disadvantage».
As a fun fact, Vitalik Buterin believes that there is a possibility that Ethereum will outperform Bitcoin in the future.
Buterin: We are approaching mass adoption
Similarly, during the interview, Vitalik Buterin explained that he believes the cryptocurrency sector is approaching a phase of mass adoption.
«It seems that cryptocurrencies are almost ready for the mainstream in a way that not even four years ago».
In addition, Vitalik spoke about the NFT, hinting that this phenomenon is on the rise and that Ethereum has been a key player.
Ethereum power consumption
As is known, Ethereum is in the process of moving from PoW to a proof-of-stake consensus algorithm, or PoS. Accordingly, through the next transition to ETH 2.0. it will drastically decrease Ethereum’s energy consumption.
In this regard, Buterin emphasized the importance of the transition: “We go from consuming the same energy as a medium-sized country, to consuming the same energy as a people».
“If Bitcoin keeps its technology exactly as it is today, there is a great risk that it will be left behind.”
In fact, Vitalik Buterin indicated that one of the main problems of cryptocurrencies is their extreme volatility. For example, by reacting to the statements of some billionaires like Elon Musk.
«Elon Musk’s tweets are something the crypto space has barely been introduced into for the first time literally last year and this year».
All this, referring to the recent message of the entrepreneur, in which announce it would abandon the use of Bitcoin for car buying. Thus causing a fall in the crypto market.
«I don’t think Elon has any kind of malicious intent in any of this.».
Ultimately, Vitalik Buterin explained why he was fascinated by the Blockchain world:”The reason is because it allows large groups of people to cooperate and do things on the same platform. But without an individual or a single company or even a single government in between».
Add: «We’ve basically been sleepwalking into a world where Facebook sees all your data. And, Twitter, you know, you can choose who stays on the platform or who goes out.».
«For all these things, I believe that decentralized systems can present an alternative. Therefore, it is not necessary to have some sort of checkpoint in between».
Finally, do you agree with Vitalik Buterin’s opinion, about the possibility that Ethereum will outperform Bitcoin in the future? Let it know in the comment box.
I retire with this phrase from Vitalik Buterin:”I profess that it is reasonable to expect a little madness. But I think the markets will learn. Elon’s not gonna have this influence forever.».