Vitalik Buterin is a renowned name in the crypto and blockchain world. Therefore, his views and comments carry a lot of weight in the sector. Buterin is also the co-founder of the Ethereum blockchain platform. Moreover, his humorous content sits well with consumers through his Twitter account and blog.
Currently, the Ethereum merge is one of the most anticipated developments in the crypto space. The transformation of Ethereum’s consensus mechanism is less than two weeks away now. By opting for the Proof-of-Stake mechanism to validate transactions, the blockchain protocol will minimize its energy consumption and carbon emissions.
In a recent interview, Buterin said that he was surprised that the crash in cryptocurrency did not happen a long time ago. He said that the crypto bull run lasted for around one and half years which is way more than its previous trend and average. Thus, he knew that crash was coming but did not know the exact timeline. He says that people project crypto as the future in the bull market but call it fundamentally flawed in the bear market.
Buterin Believes Crypto Crashes Point Out Unsustainable Business Models
According to Buterin, everything tends to go up in the crypto boom. People keep on poring money and even projects with weak models rise in the meantime. However, crashes show their true worth and value. This is something that happened with BitConnect in 2017 and Terra in 2022. Therefore, people should stay vigilant on the history and dynamics of the crypto world to stay on the safer side of crypto history.
Furthermore, Buterin believes that crypto will settle down like gold or the stock market. People have many existential questions about cryptocurrencies. However, all of these questions will get more and more settled in the coming years. He further disagreed with the point that Bitcoin’s mining difficulty and energy consumption support its value.
Buterin stated that one of the most prominent reasons for Ethereum’s transitioning to PoS is security concerns. He believes that PoS offers much more security than issuing new tokens at the same cost. Also, PoS offers low ongoing costs and high entry costs. In PoS, networks can effectively respond and recover from attacks.
In addition to this, Buterin argued that Bitcoin’s security comes from its fees. However, this fee is around $300,000 per day and is not growing at the required pace for the last five years. Thus, if Bitcoin is attacked in the future people will argue to switch towards a hybrid proof of stake model, and it will not be easy.