The profound devaluation suffered by the crypto market over the past three months may signal the beginning of a new crypto winter. According to Ethereum network co-founder Vitalik Buterin, the dreaded time of major corrections seems to have arrived for cryptoassets.
In an interview with Bloomberg, the billionaire talked about the bear market currently hitting the major digital currencies. While the period is known for significant losses in value, Vitalik Buterin pointed out that the crypto winter can also represent an opportunity.
The co-founder of the Ethereum network said that people with high involvement in the market take advantage of the crypto winter moment. Known as a period of accumulation, before the mass devaluation, investors “were happy”, Buterin says.
“They welcome the bear market because when there are these long periods of prices going up in large amounts, as has happened – it makes a lot of people happy”.
Cryptoassets will be tested by crypto winter
In 2018, the crypto market experienced a long period of massive devaluations that became known among users as crypto winter. For Vitalik Buterin, this phase may soon be repeated.
The widespread drop in prices happened for a few months in 2018, shortly after bitcoin and other digital currencies recorded all-time highs. In addition to altcoins falling by 90%, in that period, the bitcoin price approached US$ 3,000, for example.
In addition to putting crypto asset prices to the test in times of unexpected market devaluations, the crypto winter also serves to test the viability of projects in times of downturns.
Vitalik Buterin has said this period should highlight which projects can be classified as “sustainable in the long term”. With the price of digital currencies melting, many projects may face difficulties with a new crypto winter.
“Winters are the time when a lot of these applications fall through, and you can see which projects are sustainable in the long term”.