Ethereum founder Buterin: Drops in crypto can be beneficial

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 said, “People who are deeply interested in crypto, and especially the productive segment, welcome the bear market. These people are happy with the bear market because long periods such as the one we left behind make people happy, but also attract 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. Ether, the local currency of the world's most widely used blockchain, lost approximately 40 percent in value during the same period.

Solid projects survive the crypto winters

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 draws attention to this issue and comments, “Crypto winters are very useful periods when such applications are removed 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. Buterin said, “I feel that we are moving from being an industry that is independent of traditional markets and being managed by a niche group of these bright people related to crypto markets to a point that is increasingly part of the mainstream financial markets,” and added he thinks crypto winter will be useful for those who want to create new projects and advance their technologies.