The cryptocurrency market crash of the past few days has shocked investors around the world. Vitalik Buterin, the co-founder of Ethereum said he is not surprised. The meltdown, however, caused a significant drop in his net worth.
The co-founder of Ethereum said he thinks the cryptocurrency market is in a bubble. This is due to the energy debate surging around Bitcoin mining that needs it to embrace technological changes. He also said there is a possibility Ethereum will overtake Bitcoin in the future. He stated, “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 noted that energy concerns over Bitcoin’s Proof of Work mining are justified. The resource consumption is massive. Additionally, he said it’s not the sort of thing that will break the world by itself, but it’s a significant downside.
Ethereum is currently moving from PoW (Proof of Work) to PoS (Proof of Stake) consensus algorithm which will dramatically decrease energy consumption through the forthcoming transition to ETH 2.0. The estimated PoS is up to 99% more energy efficient. Vitalik Buterin stated, “We go from consuming the same energy as a medium-sized country to consuming the same energy as a village.”
Vitalik Buterin also commented on Elon Musk’s shenanigans in the cryptocurrency world, acknowledging that crypto markets tend to be vulnerable to disruptive events before they build up an immune system over time. He said:
“Elon Musk tweeting is something that the crypto space has only been introduced to for the first time literally last year and this year. I think it’s reasonable to expect a bit of craziness. But I do think that the markets will learn. Elon is not going to have this influence forever.”
Ether is currently trading at $2,520 which is currently down 12.25% in the last 24 hours, as at the time of writing this report.