Vitalik Buterin - Wikipedia

Crypto Volatility Will Stabilize Like Gold – Vitalik Buterin

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Crypto Volatility Will Stabilize Like Gold – Vitalik Buterin:

Vitalik Buterin, Ethereum co-founder, who was  recently interviewed on the current nature of the crypto market, and the future of blockchain technology, predicted that the crypto market volatility will stabilise like that of gold and stocks in the medium- term – Though he didn’t disclose any price.

Vitalik Buterin - Wikipedia
Vitalik Buterin – Wikipedia

He also discussed about proof of work, proof of stake, and the reluctance of Bitcoiners to embrace the POS.

The developer on an interview with blogger Noah Smith, said he was surprised that the current crypto bear market took longer to come by.

While the crypto market was bullish, he was sure they’d eventually drop, but he didn’t  know when exactly.

“It feels like people are reading too much into what is ultimately cyclical dynamics that crypto has always had and probably will continue to have for a long time,” he said.

According to him, the crypto market has historically experienced four-year market cycles, in line with the roughly four-year halving of Bitcoin’s supply issuance rate.

While Bitcoin’s floor price has risen steadily across each cycle, so too has the asset’s percentage return in each massive spike.

In response to the above, Noah asked Vitalik if Bitcoin follows an adoption curve, where the market saturates and mimics the price stability of gold. Ethereum’s co-founder concurred.

“I definitely think that in the medium-term future cryptocurrencies will settle down and be only about as volatile as gold or the stock market,” he predicted.

Vitalik, who doesn’t know the saturation point of crypto said that the asset class is answering more of its “existential questions” across time.

In other words, the use cases and market role of crypto confirms its certainty.

Revealing an example, Vitalik suggested that crypto could replace gold as a store of value, and become a “Linux of Finance” by 2020, but perhaps not become mainstream.

Crypto Volatility Will Stabilize Like Gold – Vitalik Buterin:

Meanwhile, Ethereum’s merge is positioned for next month, leaving Bitcoin behind on the POW consensus protocol.

Bitcoiners have refused to accept the POS model, but Vitalik feels POS is safe and more secured unlike POW consensus model.

This is because much energy is also needed to combat a security breach in the POW consensus mechanism.

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