Ethereum blockchain co-founder and prominent cryptocurrency leader Vitalik Buterin said that investors may be experiencing a “crypto winter”, but it is not all bad news for them. He went on to say that this could lead to another universe of digital assets, as prices are currently low enough, which would provide opportunities with significant profit potential when things pick up as before.
In an interview with BloombergButerin said;
A lot of people who are deeply involved in crypto and especially making things welcome the bear market. They welcome the bear market because when prices go that high over the long term, obviously a lot of people rejoice, but they invite a very short time frame. speculative attention.
Related Reading | Bullish: Signs Suggest Ethereum Could Break Above $3,085
The cryptocurrency market crashed after hitting an all-time high in early November. Due to the expectations of investors and speculators of positive economic news derived from Covid. As a result, the Bloomberg Galaxy Crypto Index fell about 45% from its peak, and Ether declined 40%.
With the recent rise in prices, many people have seen their wealth increase exponentially. CoinGecko is tracking 12,588 different tokens and reminds us all that this is not just a bull market. It has also been for cryptocurrencies. However, fraud and manipulation in this market can hurt you if misused or blindly following the leaders like sheep. And to get a rich quick scheme without understanding what they are getting into.
Pumps & dumps occur when traders try to make money on others’ losses by increasing prices before selling them at lower levels, creating fear among investors that they think it could happen again soon, leading them to safety.
Crypto Winters as an opportunity
According to a 28-year-old crypto billionaire;
Winter is the time when most of these apps shut down. As a result, you can see which projects are sustainable in the long term, such as in their models, their teams, and their people.
Ethereum price is going down since February 16 | Source ETH/USD Chart at Tradingview.com
The crypto winter may just be a seasonal chill for this emerging industry, but Ethereum founder Vitalik Buterin told Bloomberg that he was “surprised” by the market’s movement over the past year. However, he is not sure whether crypto remains in its second winter or simply reflects the volatility found in broader economies.
Related Reading | Crypto Winter is Thawing with Bitcoin and Ethereum Rebound Signal
In Denver on February 12, he said;
The crypto markets seem to flip the switches on this particular group that is controlled by a specific group of participants. It is completely disconnected from traditional markets that behave more and more as if they were part of a conventional financial market.
Buterin added that Crypto Winter is an opportunity to make some significant changes for the better.
The dangers of using cross-blockchain bridging came to light this year when the popular Wormhole crypto protocol was hacked for over $300 million. In January, Buterin warned that these types of bridges could be dangerous. It can get users’ funds trapped in smart deals without their knowledge or consent. So-called smart deals are programs that issue parallel cryptocurrencies on two different blockchains.
Buterin’s focus on Ethereum scalability
Ethereum is working to make its blockchain faster and more scalable. Investors often criticize the popular blockchain because transactions can be slow and expensive with the limitations of current technology. But now, there are efforts that can bring some much-needed improvements to this particular ecosystem.
Finally, Buterin added;
When everyone tries to use blockchain again, no, in fact, we don’t want everyone to find out again that there isn’t enough space on the chain for everyone.
Featured image from Pixabay, chart from TradingView.com
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