Vitalik Buterin: Ethereum, Cryptocurrency, and the Future of Money | Lex Fridman Podcast #80
Vitalik Buterin complained about the behavior of the cryptocurrency market
Vitalik Buterin believes that the crypto space has become similar to the stock market.
Perhaps the ideology of the blockchain pioneers is failing.
Crypto enthusiasts are not ready to give up.
Ethereum founder Vitalik Buterin complained that the cryptocurrency market should have adopted the stock market model, but everything turned out exactly the opposite..
“The outside world has gone crazy”
Vitalik Buterin, co-founder of the Ethereum blockchain ecosystem, published a post on Titter comparing the behavior of cryptocurrency and traditional markets. In particular, he lamented that, as was supposed, over time, cryptocurrencies will begin to behave like stocks, but in fact we are observing the exact opposite situation.
“What we expected: the crypto space will normalize and become more like the stock market. What we got: the outside world went crazy and the stock market began to look more like a cryptocurrency market, ”wrote Buterin.
Indeed, global markets have seen a surge in volatility since mid-March, when both stocks and cryptocurrencies plummeted at the same time. The beginning of the pandemic brought down the S index&P 500 by about 35%, and Ethereum (ETH) – the brainchild of Buterin – lost about 70% of its value, thereby confirming a direct correlation with the traditional market.
Recently, the editorial staff of BeInCrypto also said that at least since the March collapse of the S&P 500 correlates very closely with the bitcoin rate, despite some short-term deviations.
Touched to the quick
Users enthusiastically responded to this comment, with many rushing to declare that for them it was almost the first tweet of Buterin, which they completely understood and with which they absolutely agree.
As one commentator lamented, he hoped that cryptocurrencies would acquire stable value over time and would be ubiquitous along with fiat – but instead, he received only the jumping rates of traditional currencies..
However, some questioned the acceptability of separating the crypto space and the “outside world”. Others went further, stating that in fact, the cryptoindustry had already become just one of the subsystems of the traditional system, having failed to fulfill its original purpose – to revolutionize the world of finance and help defeat poverty..
Some attribute this to the fact that the crypto market was destroyed by a massive influx of pseudo-traders to it in 2017. As a result, instead of 90% of investors, 90% of participants in the crypto space turned into scalpers who do not care about the long-term development of blockchain projects.
Do you agree with Buterin’s observation? Is this a bad sign for the crypto industry? Share your opinion and join the discussion in our Telegram channel!
Hope never fades
However, a number of commentators have pointed out that volatility is not the same. For example, blockchain theorist and investor @wmougayar wrote that the crypto market is used to exist and develop in conditions of uncertainty, while for stock markets, increased uncertainty and the loss of the usual ground underfoot are more destructive..
Others added that cryptocurrencies will still emerge victorious from the current crisis, as the aggressive quantitative easing policies currently being pursued by governments and central banks around the world are undermining the value and very concept of traditional money..
Supporters of the Buterin project also noted that even in the midst of the crisis, the Ethereum blockchain continues to develop successfully and finds more and more areas of practical application. This means that more and more companies see potential and market value in it. Earlier, the editorial staff of BeInCrypto has already cited a whole list of bullish characteristics demonstrating a positive fundamental picture in the Ethereum ecosystem..
We will remind that recently Buterin already wrote that after the current crisis the world, most likely, will not be the same. Then he suggested that society is potentially ready to accept cryptocurrencies, but wants a smoother transition to the digital environment..
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