Vitalik Buterin has sparked controversy by claiming the cryptocurrency market is in a bubble today
The cryptocurrency market crash in the past few days it has shocked investors around the world. Vitalik Buterin, the co-founder of Ethereum, said he was not surprised. The collapse, however, caused a significant drop in its net worth. Vitalik Buterin said he believed the cryptocurrency market was in a bubble. This is due to the debate over the energy that arises around Bitcoin mining, which needs it to embrace technological changes.
He also said that there is a possibility that Ethereum will overtake Bitcoin in the future. He stated:
“Often, the reason the bubbles end up stopping is because an event happens that just makes it clear that the technology does not yet exist.”
Buterin noted that energy concerns about Bitcoin Proof of Work mining are justified. The consumption of resources is massive. In addition, he said that it is not the kind of thing that will break the world on its own, but it is a significant disadvantage.
Ethereum is currently moving from a PoW (Proof of Work) consensus algorithm to a PoS (Proof of Participation) algorithm, which will dramatically decrease energy consumption during the next transition to ETH 2.0. PoS is estimated to be up to 99% more energy efficient. Vitalik Buterin stated:
“We stop consuming the same energy as a medium-sized country to consume the same energy as a village”.
Vitalik Buterin also commented on Elon Musk’s antics in the cryptocurrency world, recognizing that crypto markets tend to be vulnerable to disruptive events before building up an immune system over time. He said:
“Elon Musk’s tweet is something that the crypto space was only introduced for the first time, literally, last year and this year. I think it’s reasonable to expect a little bit of madness. But I think the markets will learn. Elon will not have that influence forever. ”
Ethereum is currently trading at $ 2,520, which represents a 12.25% drop in the past 24 hours.