Ethereum co-founder Vitalik Buterin chooses to look on the bright side as cryptocurrencies are increasingly likely to be in the early stages of another crypto winter.
Ethereum inventor compares another bear market
The leading Canadian-Russian programmer said in a recent interview with Bloomberg that people in the business world who actually make something will “welcome” to another bear market. According to Buterin, falling prices could drain the speculative surplus in the crypto market:
They embrace bear markets because while massive long-term price increases make many people happy, they also tend to attract a lot of short-term speculative interest.
Buterin thinks that many existing altcoin projects will fail during a fierce bear market, and only the most resilient will survive.
Ethereum and Bitcoin experience another macroeconomically driven decline
cryptocoin.com As we reported, the cryptocurrency market saw a significant decline this week due to macroeconomic factors such as the Russia-Ukraine tension, and Bitcoin fell below $39,000 in the past hours. The world’s most valuable cryptocurrency is under significant pressure and has returned most of its gains after surging to $45,850 on Feb. As a result, Bitcoin is trading 44.56% below its November ATH.
Ethereum (ETH) is currently trading 46% below the ATH level. Buterin’s sentiment echoes Tim O’Reilly’s previous words, credited with popularizing the phrase “Web 2.0.” O’Reilly recently compared the current state of the cryptocurrency market to the dot-com craze of the late 1990s and stated that “Web3” will only be possible after another cryptocurrency crash. The computer guru denounced the massive valuations of the cryptocurrency industry, which he compared to the Pets.com era.
The next dot-com bubble?
Hundreds of millions of dollars were spent on cryptocurrency ads during the Super Bowl, bringing back memories of the dot-com boom. Many skeptics fear that crypto firms will suffer the same fate as internet companies in the early 2000s, when stock prices fell. Buterin believes that even as prices fall, a bear market can actually benefit the broader industry.
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