Feb 21, 2022
Cryptocurrency prices have tumbled since reaching record highs in early November as investors and speculators anticipate a reduction of the massive amounts of stimulus added to economies and global markets in the wake of the Covid pandemic.
Vitalik Buterin, co-founder of the Ethereum blockchain, says the digital-asset universe may actually benefit from the current retreat in coin prices that’s cast a chill on investors and is being referred to as another crypto winter.
“The people who are deep into crypto, and especially building things, a lot of them welcome a bear market,” Buterin said during an interview with Bloomberg.
“They welcome the bear market because 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’s comments came not long after the popular crypto protocol Wormhole, a cross-blockchain bridge, was hacked for over $300 million. Buterin back in January warned about the risks of using cross-blockchain bridges.
Buterin’s Ethereum Foundation is leading the latest efforts dedicated to improving the blockchain’s scalability with perhaps the most important upgrades in Ethereum’s history.