Crypto is in a bubble and that the energy debate swirling around Bitcoin mining requires it to embrace technological change, according to Vitalik Buterin, Ethereum Founder.
“We’ve had at least three of these big crypto bubbles so far,” and added that it could have ended already, or it could end months from now, according to Buterin in an interview with CNN on Tuesday.
The recent crash which sent Bitcoin down to around $30,000 was an indicator of the crypto bubble ending, wasn’t touched by Buterin.
The reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet, which is often enough” according to Buterin.
One factor in the Bitcoin price rash was Elon Musk’s announcement of his concerns over Bitcoin’s power usage. Philip Gradwell, Chief Economist of Chainalysis, said other institutional buyers may also hold concerns over crypto’s “environmental impact, use cases, illicit activity, and regulation.”