Editors News- Cryptocurrency will be almost as volatile as gold or the stock market, as per Vitalik.
- In the long run, fees will be the only source of security for Bitcoin, says Vitalik.
In a recent interview, the co-founder of Ethereum blockchain technology, Vitalik Buterin expressed his viewpoints regarding the future of cryptocurrencies. As per Buterin, in the medium term, cryptocurrencies will settle down and become volatile like gold or the stock market.
Vitalik stated:
I definitely think that in the medium-term future cryptocurrencies will settle down and be only about as volatile as gold or the stock market. The main question is just what level the prices will settle down at. In my view, a lot of the volatility early on had to do with existential uncertainty.
Vitalik’s Concern Regarding Bitcoin
Buterin declared that if Bitcoin will not replace gold as a store of value and not replace the mainstream, it will not disappear over the world in 2042.
He added:
The math nerd way of putting it would be: the price of crypto is stuck in a bounded range, and crypto can only stay highly volatile within that range for so long until repeatedly buying high and selling low becomes a mathematically almost-surely-guaranteed winning arbitrage strategy.
Vitalik furtherly expressed his concerns regarding Bitcoin and its security. According to him, in the long run, fees will be the only source of security for Bitcoin. Also, the market dominator is currently failing to generate enough fee income to secure a system that has the potential to be worth many trillions of dollars. BTC transaction fees currently amount to roughly $300,000 per day and have barely increased over the past five years.
As per Vitalik, the Ethereum blockchain is far better built to facilitate usage and applications and is significantly more successful. Additionally, switching from proof of work to proof of stake would appear to be politically impossible given how much less security.
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Source: https://thenewscrypto.com/will-cryptocurrency-be-more-volatile-than-gold-and-stock-market/