The last couple of days have been nerve-racking for the crypto-verse as almost all the coins were on a downtrend. While several suggested that they saw it coming, a few others were quick enough to buy the dip. The founder of the Ethereum network, Vitalik Buterin appeared in a recent interview with CNN and suggested that the crypto-verse was in a bubble.
Bitcoin [BTC] noted a drastic fall below $40K, this was followed by the downfall of all the altcoins. Elaborating on the same, Buterin pointed out that the crypto-verse had witnessed about three big crypto bubbles to date. This bubble could either prolong to a couple of months or must have already ended. Speaking about the same, Buterin said,
“Often enough, the reason the bubbles end up stopping is that some event happens that just makes it clear that the technology isn’t there yet.”
Bitcoin’s power consumption a “significant downside”
One of the reasons behind the king coin’s slump was Elon Musk’s recent statement. Musk announced the withdrawal of BTC’s support citing the environmental drawbacks caused by the cryptocurrency. While the community was evidently enraged by this, Buterin suggested that Musk would not have “this influence forever” as markets would learn.
Bitcoin’s mining algorithm has time and again posed a major problem for the crypto industry. While several continue to diss the cryptocurrency for the damages it does to the environment, Buterin said,
“The resource consumption is definitely huge. It’s not the sort of thing that’s going to break the world by itself, but it’s definitely a significant downside.”
Despite growing in terms of price and retaining itself as the largest cryptocurrency, Bitcoin could be in danger, noted Buterin. The king coin’s mining process would urge people to steer towards alternatives or even consider shifting from Proof-of-Work [PoW] to Proof-of-Stake [PoS]. He added,
“If Bitcoin sticks with its technology exactly as it is today, there’s a big risk it will get left behind.”