In his exclusive interview with CNN Business, Vitalik Buterin, the co-founder of the Ethereum blockchain said that “cryptocurrency is not a toy”. His remarks follow the recent crush of various cryptocurrencies which affected many investors.
Vitalik emphasized that it is very difficult to predict when a bubble would take place and for how long. Pertaining the current bubble, he said, “It could have ended now or it could end months from now.”
Despite having a chunk of his wealth wiped away by the bubble, he contends that he is not concerned about the current dip as he has witnessed many such before.
Just after the recent bubble, Buterin’s Ethereum address holds 325,000 ETH with an estimated value of about $895 million at the then price. Specifically, during the dip, ethereum crashed by more than $1 900, about 40% from the previous price of $2 700.
Although only 27 years old, Vitalik, a veteran in the crypto business, pointed out that the sudden ups or downs in prices of cryptocurrency are usually a result of certain events, something that is normal by all standards.
In spite of the dip, Buterin remains highly optimistic of the value cryptocurrency and other digital assets bring. Incidentally, ETH promises much in the crypto space. For instance, the value of Ether has been in an uptrend since the last quarter of 2020, mainly because the ethereum network backs the development and sale of non-fungible tokens (NFTs).
Commenting on the rate of adoption of cryptocurrencies, Vitalik said, “It feels like crypto is close to ready for the mainstream in a way that it wasn’t even four years ago. Crypto isn’t just a toy anymore.”
Truly, crypto isn’t just a toy, as many institutional players enter the industry, buying the major coins and tokens, thereby pushing their prices up. Incidentally, most institutional investors focus on Ether and Bitcoin, being the two major cryptocurrencies.
However, Vitalik is not pessimistic about the current dip. He feels that it is just a storm before the calm. He pointed out that crypto markets tend to be too volatile or vulnerable” before they “build up an immune system.”
The billionaire also acknowledges that the ethereum fees are very high because the Ethereum network only processes between 20 and 50 transactions per second. But he confirmed that the gas fee will definitely come down after the upgrade which will scale up the network.
As a fact, Ethereum is moving away from the Proof of Work consensus to Proof of Stake, where users are paid a reward to incentivize them to stay online and keep the network in check.