Ethereum co-founder Vitalik Buterin said that the new “crypto winter” could help the industry become stronger.
In an interview with Bloomberg, Buterin emphasized that, in fact, people “deeply immersed in the cryptocurrency industry” welcome periods of a “bear market.” This allows you to get rid of weak projects and reduces the ” hype ” level. However, he is not yet sure whether this period has begun or not.
He told Bloomberg:
“The people who are deep into crypto, and especially building things, a lot of them welcome a bear market; they welcome the bear market because when there are these long periods of prices moving up by huge amounts like it does — it does make a lot of people happy — but it does also tend to invite a lot of very short-term speculative attention.”
The last “crypto winter” ended at the beginning of 2019, and the sharp growth of the cryptocurrency market began in the fall of 2020. However, the market declined after reaching a record capitalization in November 2021. Whether this is a long “crypto winter” or just a temporary decline, Vitalik is still not sure.
Buterin admitted he was surprised and impressed by the growth of the cryptocurrency market. This led to significant funds pouring into the industry, and many new projects appeared, but not all of them are important and useful for the industry. Many of them will fall away in the crypto winter.
“The winters are the time when a lot of those applications fall away, and you can see which projects are long-term sustainable, like both in their models and their teams and their people,”
Recently Buterin Pleaded with Russia Not To Go For War in the Russian language.
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