Ethereum co-founder Vitalik Buterin was sure that the previous bull market for cryptocurrencies would end sooner or later. He stated this in an interview with blogger Noah Smith.
My interview with Vitalik Buterin is out!https://t.co/bXRzI0DASf
— Noah Smith 🐇🇺🇦 (@Noahpinion) September 2, 2022
“Actually, I’m surprised the crash didn’t happen sooner. Crypto bubbles usually last about 6-9 months after surpassing the previous peak. After that comes a fairly rapid decline. This time the bull market lasted almost a year and a half,” Buterin said.
According to him, this reflects the ‘cyclical dynamics’ inherent to cryptocurrencies.
“When prices rise, many say this is a new paradigm and the future, and when they fall, people begin to claim: it is doomed, and they are fundamentally mistaken,” he stressed.
Periodic price declines help ‘identify well’ problems in the industry and unstable business models. The latter thrive during a market boom thanks to inflows of new money, but their models cease to work during a downturn, Buterin noted. As examples he cited the recent collapse of the Terra project and the BitConnect investment scam, which collapsed in 2017.
Buterin acknowledged that bear phases negatively affect the development and evolution of protocols, because it is financially difficult to sustain sprawling teams.
“But I do not claim to have a cure for this dynamic,” he concluded.
Earlier in 2022, IoTeX co-founder and CEO Raullen Chai said that strong crypto projects would weather the bear market and recover.
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