Ethereum Founder Suggests the Crypto Market Crash was No Shocker

News / 22.05.2021

The crypto has shaken investors around the world crashes in recent days. However,  not Vitalik Buterin — although many of his fortunes have been wiped from the meltdown.

Actually, in an exclusive CNN Business interview Tuesday morning, the 27-year-old co-creator of ethereum said he believed cryptocurrencies were in a bubble. He emphasized, however, that “the popping of bubbles is notoriously difficult to predict.”

Ethereum Went Down Just Like the Others

Ethereum plunged below $1900 – an astonishing decrease from Tuesday night of more than 40 percent. It bound up at around $2700, but that was still sharply reduced by the record level of May 11, $4384.

Overall, rates for ether this year have more than quadrupled to 375%. Mr. Buterin has about 333,500 ether in his public wallet, and he is a billionaire despite fluctuating prices.

Even if Buterin is 27 years old, he is at least as much a veteran as anyone else in those crypto bust cycles.

He said at least three major crypto bubbles had existed so far. And often enough, the reason the bubbles stop is that certain events reveal that the technology isn’t there yet.

Buterin published in a 2013 white paper his creative and visionary for ethereum and, two years later, launched ethereum. It is today the second most important cryptocurrency behind bitcoin.

Why ETH is Gaining Attention

Ethereum is a blockchain network that builds and functions applications. Bitcoin, on the other hand, is considered to be “digital gold.” It’s like the crypto house’s Android or iOS.

At the end of 2017, Buterin published a tweetstorm that questioned if the crypto house had gained its market valuation, which at that time was just over half a trillion {dollars}. He was known for how he did little and how rapidly he tanked crypto costs.

However, Buterin is getting inspired by the massive progress the cryptocurrency has made lately.

Musk’s Contribution to Cryptocurrency

Etherum and cryptocurrencies still have issues in general, however. First, they remain extremely volatile, especially for retail investors accustomed to stock market controlling movements.

And some millionaires seem to treat crypto like toys. The love affair between Elon Musk and different coins sent shockwaves in the crypto space.

After Musk tweeted May 12, crypto’s sentiment took a turn that Tesla would stop accepting bitcoin as a form of payment because of worries about the environmental footprint of the cryptocurrency. An incredible $ 365 trillion went missing from the crypto market that day. 

Buterin has attributed Musk’s dogecoin numerous tweets to innocent interest. Buterin also acknowledged that the transaction fees are very high now, and despite very high demands, the Ethereum blockchain can handle only between 20 and 50 transactions a second.

However, the Ethereum founder said he was pretty sure that costs would fall due to an upgrade that would enable it to expand rapidly.

avatar
Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.