Vitalik Buterin: The world is preparing for another crypto winter

Ethereum founder Vitalik Buterin claims that after 2018 we may welcome another “crypto winter”.

Vitalik Buterin believes the world is gearing up for another crypto winter

At the ETHenver 2022 conference he attended, Vitalik Buterin emphasized that these are the phases in which long-term and sustainable financial projects have proven their worth. He noted that the era of cryptocurrencies, where one group controls the other, has arrived and that crypto assets are now operating as part of the mainstream.

Surprised by how the crypto market has performed since last year, Buterin noted that he’s not sure if crypto will enter another winter or if the industry is simply…reflecting the volatility in the broader markets.

Buterin used the following phrases in his statements:

“Winter is hard for crypto and many applications and projects disappear during this time. The rest is durable and long-lasting. With their team and the models they wear, they manage to stay alive in difficult times. Now the crypto industry has moved on from a time when one niche group controlled another. I was particularly surprised by the growth that we have experienced over the past year. Now the cryptocurrency market functions as part of the mainstream financial market. I’m not sure if we’re entering a crypto winter at this point, but if we are, there will be periods where projects survive just fine. These periods are also opportunities for projects to build new technologies.”

Buterin added that crypto winter can help crypto projects focus on improving technology. Buterin, who has been focusing on scaling Ethereum for a while, also said that people don’t want to face the same problems when network usage repeats:

“When the blockchain is reused, we don’t want people to still see congestion or inactivity.”

Buterin’s comments come shortly after popular cryptocurrency protocol Wormhole, a cross-blockchain bridge, was hacked for more than $300 million. Buterin warned about the risks of using cross-blockchains in January.

As we recall, Ethereum had a strong surge in December 2017 with the bull season, like many other cryptocurrencies. The cryptocurrency peaked at $1300 in January 2018. Ethereum, which has been steadily declining with a strong downtrend, is also down below $90. The second-largest cryptocurrency, which also made its mark during the 2021 bull season, hit an all-time high above $4,800 on November 10.

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