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Vitalik Buterin Is Unconcerned About The Decline of Ethereum

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Buterin and his father both claimed to be accustomed to instability. The second most valuable cryptocurrency by market capitalization fell from an all-time high above $4,500 to values last seen in 2020.

Ethereum has had similar or worse drawdowns since its launch in 2014. Back in 2017, the cryptocurrency reached an all-time high near $1,500 before plummeting below $100 in the months that followed.

Because of this, Buterin and Dima asserted that they are not concerned about the current bearish pressure and instead chose to highlight the possible applications of cryptocurrency that go beyond finance, non-fungible tokens (NFTs), and some of the other well-known use cases. 

“Crypto has had ups before, and it has had downs before, and it will have ups and downs again. The down periods are certainly challenging, though they are also often the periods where the most meaningful projects get nurtured and built,” says vitalik. 

The Ethereum creator is more concerned about speculators and short-term investors looking to make a quick profit. As a result, he believes the Ethereum network may extend beyond financial use cases and anticipates it will do so.

As the article explains by mentioning Buterin’s contributions to Ukraine, cryptocurrency can be utilized to fund donation networks through decentralized autonomous organizations (DAOs). Ethereum’s creator recently mentioned “souldbound tokens” and how they can improve people’s online experiences.

Vitalik Buterin reflected on the early days of Ethereum and what it has become: “So, at first, I thought it would be something pretty small. Then I thought it would be maybe something interesting. The other thing that happened that I totally did not expect is just how big the crypto space got first in 2017 and then in 2021. I think that part of the rapid growth was definitely a big surprise to me.”

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The second-largest cryptocurrency by market capitalization is currently updating its consensus algorithm. The network is said to become more scalable as it transitions from Proof-of-Work (PoW) to Proof-of-Stake (PoS), while also lowering its environmental impact.

Right now, as the crypto market is in the red, Buterin expects the network to continue to grow and “become more mature”. In the coming years, the inventor of this network expects it to “meet the hopes and dreams of millions of people”.

In this regard, Buterin’s father emphasized the market’s cyclical nature and why cryptocurrency will always have ups and downs. This time, ETH may be entering the “era of mass adoption,” as Dim predicted.

This could happen if core developers are successful in launching “The Merge” on mainnet, the event that will complete ETH’s transition to its new consensus mechanism, and they implement technology that contributes to its scalability

Dima said, “It’s never a straight line. It’s not as smooth. Right now, there’s a lot of fear. There’s a lot of doubt (…). Nothing changes for me [in terms of outlook]. There is a bit of short term fear and speculators will be washed out, and, yes, there will be some suffering, unfortunately, and pain, and then life will go on.”