- Vitalik Buterin said he thinks crypto is in a bubble
- Vitalik said Bitcoin may get left behind due to its power usage
In a recent interview, Vitalik Buterin said he thinks crypto is in a bubble. But he doesn’t predict when it will pop.
He also said there is a possibility Ethereum will overtake Bitcoin in the future. Also, Ethereum founder Vitalik Buterin stated that crypto is in a bubble. This is due to the energy debate surging around Bitcoin mining that needs it to embrace technological change.
The crypto crash of the past few days has shocked investors around the world.— CNN (@CNN) May 20, 2021
Vitalik Buterin isn't among them — even though the meltdown wiped out a huge chunk of his personal wealth. https://t.co/TkPlysfuNo pic.twitter.com/yuxxsPrsLB
Ethereum founder didn’t comment on whether the recent crash was an indicator of the crypto bubble ending but said:
Often enough, the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet.
Buterin noted that energy concerns over Bitcoin’s Proof of Work mining are justified. The resource consumption is massive. Additionally, he said it’s not the sort of thing that will break the world by itself, but it’s a significant downside.
Ethereum moving from PoW to PoS consensus algorithm will dramatically decrease energy consumption through the forthcoming transition to ETH 2.0. The estimated PoS is up to 99% more energy efficient.
“We go from consuming the same energy as a medium-sized country to consuming the same energy as a village,” says Buterin.
Also, Buterin added that the power consumption of Bitcoin mining and the hardware required would call its community to switch to PoS or move to a hybrid. He, therefore, said if Bitcoin sticks with its technology precisely as it is today, there’s a big risk it will get left behind.
He noted that Musk’s influence would wane over time. In addition, Buterin said that it’s fair to expect a bit of craziness. But the markets will learn. Further, he noted Elon is not going to have this influence forever.