Ethereum Co-Founder Vitalik Buterin Says Cryptocurrencies Are In A ‘Bubble’ | Benzinga
Ethereum (ETH) co-creator Vitalik Buterin answered in the affirmative when asked if the cryptocurrency markets were in a state of a bubble in a CNN interview Thursday.
What Happened: On the frothy nature of the cryptocurrency markets, Buterin emphasized that it is “notoriously hard to predict” when bubbles will pop.
“It could have ended already,” Buterin said — adding, “It could end months from now.”
Buterin noted that there have been three “big crypto bubbles so far.” He said, “the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet,” as per CNN.
ETH traded 5.33% higher at $2,755.21 at press time over a 24-hour period. Intra-day, the second-largest cryptocurrency by market capitalization moved between a low of $2,575.88 and a high of $2,993.15.
Against (BTC), ETH traded 4.25% higher in a 24-hour period. BTC traded 1% higher against the U.S. dollar at $39,860.31 at press time.
Why It Matters: On Wednesday, Bitcoin crashed below the $32,000 level, while ETH almost fell to the $2,000 level. Both the cryptocurrencies have since then staged a recovery.
Before the crash, Tesla Inc (NASDAQ:TSLA) CEO Elon Musk had been wrangling with Bitcoin adherents on Twitter after the automaker he leads stopped accepting the currency for payments citing environmental concerns.
Buterin touched on Musk’s tweets in the CNN interview. “Elon Musk tweeting is something that the crypto space has only been introduced to for the first time literally last year and this year,” he said.
“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,” the cryptocurrency entrepreneur said.
Buterin did not ascribe any malevolent intent to Musk’s tweets on Dogecoin (DOGE) and said the Tesla CEO was human and “humans get excited about dog coins.”
The Ethereum co-founder acknowledged that governments had the power to “make it more painful to participate in the crypto sector.” He said it was important to listen to regulators and “to try to do our best to address concerns.”
He expressed confidence that transaction or gas fees on Ethereum’s network will come down due to ongoing upgrades.
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