StartKryptowährung NewsA Crypto Winter would be welcomed by top developers

    A Crypto Winter would be welcomed by top developers

    • Vitalik Buterin said on Saturday that many people in the crypto space would be happy if the price of digital assets continued to fall.
    • A crisis reveals which projects are sustainable in the long term, the Ethereum co-founder told Bloomberg.
    • He said crypto feels like it has moved from a niche to a part of mainstream financial markets.

    Ethereum co-founder Vitalik Buterin said that many crypto developers would not be unhappy to see a continued decline in the price of digital currencies, as the crisis could wipe out less viable projects.

    Cryptocurrencies have fallen alongside equities in recent weeks as investors have become increasingly cautious about taking risks given continued rises in inflation, interest rate hikes expected by the

    Federal Reserve and geopolitical tensions.

    But the prospect of further losses and a

    Read more: A Crypto Winter Would Be Welcomed by Top Developers

    bear market — typically, where prices fall 20% from a recent high — won’t deter some in the crypto world, Buterin told Bloomberg.

    “People who are deep into crypto, and especially into building things, a lot of them welcome a bear market,” he said in an interview published on Saturday.

    Ethereum’s native tokenized ether is down 35% year-to-date, falling from $3,722 in early January to $2,608 when last checked on Monday, according to data from CoinMarketCap. Bitcoin, the main cryptocurrency, is down 19% in 2022 so far as the broader market crashes.

    When crypto prices rise and in a

    Read more: Crypto winter welcomed top developers says

    bull market which is attracting huge amounts of attention and encouraging speculative thinking about the use of crypto in projects, he said.

    On the other hand, falling prices separate the curious from the serious, he argued. This is why a “crypto winter” – when prices keep crashing and not recovering for a long time – could be seen as a positive.

    “Winters are when a lot of these apps go down, and you can see which projects are actually sustainable in the long run, like both in their models and in their teams and employees,” the Ethereum co-founder said.

    The OpenSea NFT Marketplace is an example of a project that made it through the last crypto winter. It was founded in December 2017, just days before the crypto price crash. But in January this year, it hit 1 million active wallet users and a valuation of $13 billion for the first time, having managed to hold its own during that market low.

    Read more: A Crypto Winter Would Be Welcomed by Top Developers

    Buterin was unsure if the crypto market was already in another winter of losses, or if it was just mirroring movements in other assets as digital currencies attract more traditional investors.

    “It feels like the crypto markets have kind of moved from this niche group that is controlled by a very niche group of participants and is quite disconnected from traditional markets, to something that behaves more and more like if it was part of the traditional financial markets,” he said.

    Cryptocurrency losses have been accompanied by steep declines for US equities, and tech in particular, which are suffering from a wave of risk aversion driven by rising inflation, the prospect of a blow. interest rate hikes planned by the Federal Reserve for the economy, and geopolitical tensions around Ukraine.

    Read more: A BNY Mellon Wealth Management investment manager explains why he expects stocks to rebound 8-10% this year despite recent volatility – and shares 3 investment strategies to excel in the current mid-term bull market cycle

    Find more: Crypto winter be welcomed top developers – Krypto-NFTs

    Source: 🔗