Vitalik Buterin called the current bear cycle expected

Vitalik Buterin called the current bear cycle expected

Vitalik Buterin called the current bear cycle expected

Ethereum co -founder Vitalik Buterin was sure that the previous bull market cryptocurrencies will end sooner or later. He stated this in an interview with the blogger Noah Smith.

“In fact, I am surprised that the collapse did not occur before. Typically, cryptopuses last about 6-9 months after overcoming the previous peak. Following quite quickly a rapid fall occurs. This time the bull market lasted almost a year and a half, ”said Buterin.

According to him, this is a reflection of the “cyclic dynamics” inherent in cryptocurrencies.

“When prices are rising, many say that this is a new paradigm and the future, and when they fall, people begin to say: it is doomed and fundamentally mistaken,” he emphasized.

Periodic price downs help to “identify” problems in the industry and unstable business models. The latter succeed during the boom in the market due to the influx of new money, but their model stops working during the recession, buterin noted. As examples, he cited the recent collapse of the Terra project and the BitConnect investment scam, which collapsed in 2017.

Buterin admitted that bear stages negatively affect the development and development of protocols, since it is difficult to financially support the overgrown commands.

“But I do not claim to be [invention] of medicine for this dynamics,” he concluded.

Recall that the co -founder and CEO of the IOTEX platform Raullen Tea in early 2022 expressed the opinion that strong crypto projects will survive the bear market and recover.

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