As the cryptocurrency market went down a sheer drop over the past week, there was a fair bit of commentary from retail investors and industry insiders. However, this comes from Vitalik Buterin – who gives his take on where the market is right now.
For starters, this is not the first time the co-founder of Ethereum and Bitcoin magazine gives the world a glimpse of his perspective of where the market stands. The last time he did this was towards the end of 2017. Buterin took to Twitter to pose a few serious questions about the valuation of the digital assets market and whether or not it was deserving of it.
Following this, the market started to shift downwards, shedding a significant percentage of the half a trillion dollar market cap it had recently attained. This time, Buterin seems to have a slightly different view than before.
Firstly, Buterin is strongly convinced that the digital assets market is in a bubble. Pointing out that the market has gone through three bubbles since its beginning, he also emphasised the unpredictable nature of a market bubble.
“We’ve had at least three of these big crypto bubbles so far, and often enough, the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet.” Buterin told CNN, he also stated that “It could have ended already, it could end months from now.”
However, Buterin also has a great deal of confidence in the progress that’s been made over the past few years – Ethereum being an industry leader when it comes to driving blockchain technology towards mass adoption.
“It feels like crypto is close to ready for the mainstream in a way that it wasn’t even four years ago, crypto isn’t just a toy anymore.” Buterin said.
But, he also cautions that there is still a lot of room for growth and improvements and that many aspects of the regulatory environment are still quite unclear.