Crypto in a bubble and Bitcoin can lag due to energy consumption, Ethereum founder says

Crypto in a bubble and Bitcoin can lag due to energy consumption Ethereum founder says

Vitalik Buterin, co-founder of Ethereum (ETH), thinks the cryptocurrency market may be in a bubble right now. That admits the developer of the largest altcoin on the market in an interview with CNN on May 20:

Yet he does not want to give a prediction when this bubble could burst. According to Buterin, it “could have ended,” but it could also be “in months.” He emphasizes that it is very difficult to predict.

“We’ve had at least three of these big crypto bubbles so far. And usually the reason the bubbles burst is because an event is happening that just makes it clear that the technology isn’t there yet. ”

Still, Buterin believes that crypto is on the cusp of going mainstream and that was not the case four years ago. The programmer was also asked what he thinks about Elon Musk and his tweets that move entire markets:

“Tweeting Elon Musk is something the crypto sector literally first encountered for the first time last year and this year. I think it is reasonable to expect a bit of craziness. But I do think the markets will learn. Elon will not have this influence forever. ”

There is also a lot of skepticism in the market that Musk keeps promoting Dogecoin (DOGE), a crypto created for fun.

“The fact that he has over 100 billion and runs Tesla and SpaceX and all these things doesn’t change the fact that he is ultimately human. People are apparently getting excited about dog coins. I don’t think Elon has any malicious intent here. ”

Said Buterin, who recently suddenly held billions of dollars in Shiba Inu (SHIB) tokens, a Dogecoin (DOGE) spin-off. There was a fear that he would dump them all, but in the end he only sold about 10% and donated the proceeds to charity. The rest were destroyed.

Still, Buterin now admits that he probably never could have sold them for billions, there may not have been enough liquidity for that. Buterin is then asked whether governments can still hold back the crypto market, he says:

“It just seems a lot more difficult and a lot less realistic to do something like that. At the same time, governments have a lot of power to make it more difficult to participate in the crypto sector. Governments cannot completely disable decentralized blockchains, but they can block or restrict access. ”

At the moment, the discussion about the energy consumption of proof-of-work (PoW) crypto such as bitcoin (BTC) and ether is flaring up again. Buterin says when Ethereum moves to proof-of-stake (PoS) energy consumption will decrease by a factor of between 1,000 and 10,000. However, Bitcoin can be left behind by this:

“If Bitcoin remains exactly as it is now, there is a great risk that it will lag behind.”

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