Cryptocurrency Bubble Would Eventually Pop – Says Ethereum Co-Founder Vitalik Buterin
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The post cryptocurrency bubble will finally pop – says Ethereum founder Vitalik Buterin appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto guide
In a recent interview with Opinion columnist Noah Smith, Vitalik Buterin confirmed that he knows the cryptocurrency bull market will eventually end.
He added that he was starting to see people thinking that these high prices were the “new normal”. However, he knew personally that it wouldn’t last that long.
He also stated that crypto bubbles typically last up to nine months. Buterin mentioned that the previous rise was overlong, lasting about a year and a half.
All the while, the Canadian programmer has dismissed the severity of the latest price correction and attributed it to cyclical dynamics. According to Buterin, low crypto prices are not an indication of fundamental flaws in the cryptocurrency market.
The collapse of Terra earlier this year is an example of an unsustainable business model that only succeeded during the bull market and then imploded.
ETH has struggled to recover before the consolidation update, with its price down 67.44% from its all-time high.
Crypto volatility may decrease over time
Buterin mentioned that in the medium term, cryptocurrencies will settle and become about as volatile as gold or the stock market. At what level they settle – that needs to be discussed.
A Canadian programmer believes that the probability of crypto disappearing or taking over the world in 20 years is low if it manages to succeed in niche areas such as store of value and becomes “Finance Linux.”
Ethereum may soon drop to $1,000
According to Bloomberg, Ethereum, which was at $2,000 last month, may soon drop to $1,000 or below. The graphs below show the same:
Bloomberg also pointed to technical indicators that hint that ETH’s fall from its August peak of $2,000 to its current $1,588 level could take it much lower. The drop could happen even as the much-anticipated Merge update approaches.