- In the interview, Buterin explained the good thing about crypto down market.
- I am amazed that the collapse didn’t happen prior- Buterin
Vitalik Buterin, the co-founder of Ethereum, gave an interview to Noah Smith, former Bloomberg Opinion columnist, recently. In the interview, Buterin described one thing which is good about the crypto down market.
With respect to the crypto bear market that began in November 2021, Buterin stated in the interview:
“Literally, I was amazed that the collapse did not happen prior. Generally, crypto bubbles stretch for almost 6-9 months after exceeding the earlier high, after which the quick fall comes pretty rapidly. At this moment, the bull market kept going for almost one and a half years…”
Buterin explanation about bear market
“In my point of view, the decline in prices are good at disclosing problems which were there from the start every time. Temporary business models tend to succeed in the time of highs, due to everything being hiking, so the fund people have at their destruction is hiking, so things can be built up for a moment by a persistent influx of new dollars.
“During the time of downfall, as we witnessed with Terra, this model is not working currently. This is the most accurate in extreme circumstances like high leverage and ponzis… but it is also accurate in most subtle ways, such as how protocol growth is easy to continue in the time of booming markets but when the price falls the freshly expanded teams are difficult to financially continue. I do not declare to have a heal for these dynamics, excluding my normal suggestion that people should recall the history of the industry and take the long view of things.”
As for his approach to long run view point for the crypto market, Vitalik explained:
“I surely think that in the average future crypto will take root and be only about as unstable as gold or the stock market.”
Source: https://www.thecoinrepublic.com/2022/09/04/ethereum-co-founder-explains-why-price-drops-are-good-for-crypto-world/