Ethereum (ETH) co-founder Vitalik Buterin says a downturn in cryptocurrency prices might prove to be healthy for blockchain technology in the long run.
According to a new Bloomberg report, the 28-year-old crypto billionaire says that a crypto winter could serve to keep speculative investors away from the space.
According to Buterin,
“When there are these long periods of prices moving up by huge amounts like it does – it does obviously make a lot of people happy – but it does also tend to invite a lot of very short-term speculative attention.”
Buterin also says that lean times and flat market prices can serve to test projects’ sustainability and shake out the weaker ones.
“The winters are the time when a lot of those applications fall away and you can see which projects are actually long-term sustainable, like both in their models and in their teams and their people.”
The Ethereum creator says he is focusing his energy on upgrading the leading smart contract platform so that the next wave of blockchain technology adoption is a success.
“When everyone is again trying to use blockchains, we don’t want them to discover yet again that no, actually, there isn’t enough space on the chain for everyone.”
Ethereum, like many of the top digital assets, has been on a rocky road during the first two months of 2022. The second-ranked crypto by market cap rang in the New Year valued at $3,730, then fell to as low as $2,207 by January 24th.
ETH rallied to a monthly high above $3,250 on February 10th but has seen choppy downward price action since and currently trades for $2,579, marking a 30.86% decline for the year.
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