Ethereum founder Vitalik Buterin believes that crypto is in a bubble and that the energy debate surrounding Bitcoin mining requires accepting technological change.
Speaking to CNN on Tuesday, Buterin noted that “we’ve had at least three of these big crypto bubbles so far,” adding that it could have ended already, or it could have ended in months.
The 27-year-old didn’t comment on whether the recent crash that saw Bitcoin drop to around $ 30,000 was an indicator of the end of the crypto bubble, but said, “Often enough, the reason the bubbles stop is , an event that just makes it clear that the technology isn’t there yet. “
One factor behind the price spike in Bitcoin was Elon Musk’s announcement of concerns about Bitcoin’s power consumption. Philip Gradwell, chief economist on chain analysis, said other institutional buyers may also have concerns about the “environmental impact, use cases, illegal activities and regulation” of crypto.
Ethereum is in the process of moving from PoW to a proof-of-stake or PoS consensus algorithm due to the upcoming transition to ETH 2.0. This will drastically reduce the energy consumption of Ethereum. Nimbus estimates that PoS is up to 99% more energy efficient.
“If Bitcoin sticks to its technology as it does today, there is a great risk that it will be left behind.” While this call will no doubt be controversial, Bitcoiners can applaud Buterin’s assessment of Musk Twitter Antics. He noted that this is a relatively new phenomenon in the crypto space and that Musk’s influence will wear off over time. “I think it’s reasonable to expect a bit of weirdness,” he said. “But I think the markets will learn. Elon won’t have that influence forever. “