StartKryptowährung NewsCrypto Winter Will Be Welcomed By Top Developers

    Crypto Winter Will Be Welcomed By Top Developers

    Video Crypto Winter Will Be Welcomed By Top Developers
    • Vitalik Buterin said on Saturday that many in crypto would be happy if the price of the digital asset continued to fall.
    • A recession shows which projects are sustainable over the long term, the Ethereum cofounder told Bloomberg.
    • He added that crypto feels like it has been flipped from niche to being a part of mainstream financial markets.

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

    Stocks as well as cryptocurrencies have declined in recent weeks, as investors have become more cautious about risk-taking given the continuing rise in inflation, expected interest-rate hikes by the Federal Reserve and geopolitical tensions.

    Read more: Crush of Bitcoin: is crypto winter for long or coming to an end?

    But more losses and the prospect of a bear market — typically, where prices fall 20% from recent highs — won’t deter some in the crypto world, Buterin told Bloomberg.

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

    Ethereum’s native token Ether is down 35% year-on-year, from $3,722 in early January to $2,608 at the last check on Monday, according to data from CoinMarketCap. Major cryptocurrency Bitcoin is down 19% so far in 2022 as the broader market plunges.

    When crypto prices are rising and in a bull market, that attracts huge amounts of attention and encourages speculative thinking about using crypto in projects, he said.

    Read more: Ethereum founder Buterin says Crypto welcomes another winter

    On the other hand, falling prices separate the curious from the serious, he argued. This is why the “cryptocurrency winter” – when prices continue to fall and fail to recover for a long time – can be viewed as a positive.

    “Winter is the time when a lot of those applications drop, and you can see which projects are really sustainable over the long term, like in their model and both in their teams and their people,” said the Ethereum cofounder.

    NFT marketplace OpenSea is one example of a project that made it through the past crypto winter. It was founded in December 2017, a few days before the drop in crypto prices. But in January of this year, it hit 1 million active wallet users and a valuation of $13 billion for the first time ever, having managed to hold through that market trough.

    Buterin wasn’t sure whether the crypto market was already in a new winter of losses, or whether it was reflecting moves in other assets, as digital currencies attract more mainstream investors.

    Read more: Crypto Winter: 5 Ways to Prepare For the Next Bull Run

    “It seems that the crypto markets have flipped the switch from this niche group that is controlled by a very specific set of participants and is largely disconnected from the traditional markets, which behave more and more like it is. is part of the mainstream financial market,” he said.

    The damage for cryptocurrencies came with sharp downsides for US stocks, and tech in particular, which have been suffering a wave of risk aversion due to rising inflation, the potential for a hit to the economy from the expected hike in Federal Reserve interest rates, and geopolitical tensions around Ukraine.

    Read more: An investment chief for BNY Mellon Wealth Management breaks down why he expects stocks to rise 8 to 10% this year despite recent volatility — and 3 investment strategies to excel in the current mid-cycle bull market. shares


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