One of the creators of the Ethereum cryptocurrency, Vitalik Buterin, believes that the cryptocurrency and other digital assets industry can benefit from the currently observed price drop, dubbed the crypto winter among investors. About it he told in a conversation with journalists from Bloomberg.
“Many people who are knowledgeable about cryptocurrencies and especially creating new things are embracing the bear market [период относительно долгосрочного снижения курсов]. They welcome a bear market because of course, when there are periods of rapid price changes, that makes a lot of people happy, but it also attracts the short-term attention of speculators.”– says Vitalik Buterin.
The price of many popular cryptocurrencies has declined significantly since hitting record highs in November last year. The downward trend in the value of cryptocurrencies comes as crypto investors anticipate a reduction in stimulus measures taken by governments of different countries to stabilize the economy during the coronavirus pandemic. Digital asset prices are also affected by the tightening regulation of the cryptocurrency sphere by the governments of different countries.
Cryptocurrency index Bloomberg Galaxy fell nearly 45% from its all-time high. The Ethereum exchange rate has fallen nearly 40% since November of last year. The cryptocurrency industry has been booming since the last crypto winter of 2018. “Winter is the time when a lot of projects are dropped and you see which projects are really long-term, both in terms of the model used and in terms of teams and people.”, Buterin believes. That is, it will help weed out the weak, which will strengthen the strong.
The cryptocurrency billionaire also noted that he was surprised at how the digital asset market has performed since last year and also expressed his uncertainty that the cryptocurrency is really in for a long winter. In his opinion, the current devaluation of many cryptocurrencies could be a reflection of the high volatility in major markets. He also believes that the crypto winter will help people involved in the implementation of cryptocurrency projects to focus on improving the technologies used.