Ethereum co-founder Vitalik Buterin was confident that the previous cryptocurrency bull market 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. Typically, crypto bubbles last about 6-9 months after the previous peak has been overcome. A swift fall followed fairly quickly. This time, the bull market lasted almost a year and a half,” Buterin said.
According to him, this is a reflection of the “cyclical dynamics” inherent in cryptocurrencies.
“When prices rise, many say that this is a new paradigm and the future, and when they fall, people begin to argue: this is doomed, and they are fundamentally mistaken,” he stressed.
Periodic price drops help to “find well” industry problems and unsustainable business models. The latter do well during a boom in the market due to the influx of new money, but their model stops working during a recession, Buterin noted. He cited the recent collapse of the Terra project and the BitConnect investment scam that collapsed in 2017 as examples.
Buterin acknowledged that bearish phases have a negative impact on the design and development of protocols, as it is difficult to financially support sprawling teams.
“But I don’t claim to [изобретение] cures for this dynamic,” he concluded.
Recall that Raullen Chai, co-founder and CEO of the IoTeX platform, expressed the opinion at the beginning of 2022 that strong crypto projects will survive the bear market and recover.
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