Vitalik Buterin, one of the founders of the Ethereum blockchain, stated that the digital asset universe could benefit from the pullbacks in the value of cryptocurrencies, which is called a new crypto winter.
Buterin made the following assessment:
“People who are deeply interested in crypto, and especially productive people, welcome the bear market. These people are happy with the bear market because long periods like the one we left behind when prices rise significantly make people happy, but it also attracts a very short-term speculative interest.”
Cryptocurrencies, which saw record levels in early November, were turned upside down as investors and speculators predicted that the huge monetary expansions made during the pandemic period would decrease. Currently, the Bloomberg Galaxy Crypto Index is 45% below its all-time high. Ether, the local currency of the world's most widely used blockchain, also lost approximately 40 percent in value during the same period.
Since the last crypto winter in 2018, the industry has exploded. While the large sums of money invested in the latest crypto bull have spawned many stories of people becoming millionaires or billionaires overnight, one person's gain often means someone else's loss and pain. When we look at the practices managed by many people who enter the crypto world to make short-term profits, it is seen that many people are victimized by the market manipulation method called inflate and destroy.
The 28-year-old crypto billionaire drew attention to this issue.
“Crypto winters are very rewarding times when these types of apps are wiped out from the market and people can see which projects have a long-term sustainable structure, both by the model and by the people in their teams.”
Buterin says he has been surprised by the market's movements since last year, adding that he is uncertain whether this is really a crypto winter or whether the industry is just imitating larger markets.
“I feel that we are moving from an industry that operates independently of traditional markets and run by a niche group of these crypto-globals to a point that is increasingly becoming a part of mainstream financial markets.”
Buterin added that he thinks the crypto winter will also be beneficial for those who want to create new projects or improve their technologies.