Victor Ugochukwu · Dec 14, 2020 . 5min read
Ethereum Co-Founder Vitalik Buterin Shares Concern for Crypto Markets
In a new interview on the What Bitcoin Did podcast, Vitalik Buterin shares his concern for the crypto markets.
By Komal Joshi · Aug 28, 2020 . 7min read
In the latest interview on the What Bitcoin Did podcast, Vitalik Buterin, co-founder of Ethereum Foundation and Bitcoin Magazine, shares his most prominent concern for the crypto markets. It includes technical issues and the threat of intervention from government authorities. Vitalik Buterin contemplates the risks relating to Bitcoin, Ethereum, and the cryptocurrency movement at large.
He says that there is always a kind of black swan risk of technical failure. He elucidates that if NSA comes out with a quantum computer and steals many coins, the companies won’t be able to do anything. Moreover, what if governments banned Bitcoin, seized the mining pools, and use that to make a 51% swan camping attack. They will attack the chain over and over again until it becomes non-viable.
Vitalik Buterin on Investors Interest in Crypto in the Long Run
Buterin questions with respect to bitcoin whether developers and investors will show interest in the original cryptocurrency in the long run. Buterin states that “Bitcoin doesn’t have what I call functionality escape velocity. So basically, sufficient functionality to serve as a trustless base layer for a lot of different applications. As a result of this, there’s a possibility that over time people will find Bitcoin less and less interesting and other platforms more interesting.”
Acknowledging the debate on can Ethereum (ETH) emerging as a new form of money, Buterin says that it relies on how you define a currency. He says both ETH and BTC have already proved that they are a storehouse of value. Describing it further, he tells, the word money does combine a lot of different concepts. For example, people talk about the unit of account, the medium of exchange, store of value. For the medium of exchange, Bitcoin is used, and ETH as that sometimes. However, ETH has a store of value. Additionally, Vitalik also believes that Quadratic Signaling can solve the Ethereum community support problem. Thus, improving the user experience for the Ethereum community.
Buterin on the Future of Blockchain
Earlier, Vitalik Buterin shared his thoughts on the future of blockchain, the state of ethereum, and more during a small, private event held in San Francisco last week. The Blockchain at Berkeley student-run organization, Origin and Steve Chen, co-founder of the Modernist social club, hosted the event. Buterin was enthusiastic about the Ethereum Casper protocol’s progress, noting that the ethereum community has been making headway.
Buterin said that the amount of sustainable usage of blockchain is meagre. Although it exists, many people give value to cryptocurrencies. However, the amount of useful stuff following is still much lower than the $200 billion market cap makes it seem. The industry’s main challenge is knowing how to connect that gap and get to point where generating $200 billion in some sense of actual final value.
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