The current crypto bear market is beneficial for Vitalik Buterin!

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The crypto market has been on half bar for several weeks. “Bear market” and “crypto winter” have thus become two expressions of crypto-jargon, which we hear regularly now. However, the situation is not as bad as it seems. There could even be something good in the cryptocurrency depression! What do you mean ? Vitalik Buterin, the creator of Ethereum explains it to us.

Source: Pixabay

“bear market” or “crypt winter”? In short, prices are diving!

Already in bad shape by the end of 2021, cryptocurrencies have continued to fall since the beginning of 2022. The situation at Ukraine’s borders has only increased concern in the crypto (and stock market). After Russian troops entered Ukraine, the day can turn into cryptocurrency. A controlled…. which has been following bearish economic conditions as a whole for several weeks now. We’ll talk about then “bear market”. If it exists more explanations for this terma “bear market” refers to an overall price drop.

The most pessimistic even put forward the idea that the market has entered one “crypto winter”. This term refers to a larger phenomenon, a long period of price decline. For example, the last cryptocurrency winter took place in 2018 and 2019. During this period, the price of Bitcoin steadily fell from $ 19,000 at the end of 2017 to $ 3,200 in 2019.

So are we witnessing a bear market that is solely linked to the geopolitical and health context? Or have we gone into a crypto winter that will continue for months? No one can say, even Vitalik Buterin does not risk a prognosis on this topic! And then it’s not the most important thing.

What matters is to know that this bearish situation is not bad in itself if we look at the situation as a whole.

Source: Adobe / oatawa

For the creator of Ethereum, the current bear market is beneficial for the crypto market

The decline in the crypto market is bad for investors’ wallets. But for Vitalik Buterin, the creator of Ethereum, on the other hand, it’s a good thing for the crypto field as a whole. This cleans up the market and allows projects to improve their technology.

Bear markets are cleaning up the crypto market

For weeks, have you been despairing about seeing cryptocurrencies? Do not panic ! We need to look at the situation as a whole. Moreover, the founder of the crypto Ethereum Vitalim Buterin recently talked about it.

“People have taken a big bite of crypto, and especially in app building, many of them welcome you to a bear market. (…) They welcome the bear market, because when there are these long periods where prices rise enormously, it naturally makes many people happy, but it is also a strong invitation to speculation in the very short term. »Vitalik Buterin, creator of Ethereum

For him, the bear market thus makes it possible to clean up the crypto market. How ? To clears the market for short-term speculative investorsvery present when the market is doing well.

Source: Adobe / Trueffelpix

Bear markets allow projects to strengthen their technologies

For Vitalik Buterin, bear markets are also an option test the robustness of the many crypto projects under development.

“winter” [crypto winters] is when many of these apps go down and you can see which projects are actually sustainable in the long run from the perspective of their models and their teams and employees. »Vitalik Buterin, creator of Ethereum

In addition, there are fewer crypto users under the bear market. For him, it is also a good time for crypto companies focus on their technology and work with the drug. Thus, as the market rises, the structures will be strong enough to handle the influx of users.

Ethereum does this, having been working on the implementation of structural updates for several months. These aim to improve the scalability of the Ethereum network, which is one of the weaknesses of blockchain at the moment. Currently the price of ETH is $ 2,363. Like many other cryptocurrencies, it has dropped 23 points in the last 7 days.

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