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Ethereum Cofounder Joseph Lubin Disagrees With Vitalik Buterin on Future Crypto Growth

  • Alex Morris
    📰 News

    ConsenSys CEO and the cofounder of Ethereum Joseph Lubin talks market volatility, cryptocurrency adoption and the state of regulatory progress


Ethereum Cofounder Joseph Lubin Disagrees With Vitalik Buterin on Future Crypto Growth
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Ethereum co-founder Joseph Lubin, who previously said that the December crypto boom was a bubble, claims that the market will experience further growth. He believes that the cryptocurrency industry is currently moving in the right direction.  

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Attention over volatility


During a recent interview with CNN.Money, Lubin has recently discussed the current market sentiment with CNN's Julia Chatterley. Speaking of the December peak, Lubin states that these booms are always about recognizing the potential of a new technology and subsequent market speculations. However, he believes that the industry is rapidly developing. Blockchain technology, according to Lubin, has a huge potential to be applied in many areas, including gaming. ConsenSys CEO claims that that the technology is still rather immature, so we have to wait until it further evolves.

As U.Today has recently reported, Ethereum co-founder Vitalik Buterin actually claims that the days of huge crypto growth are gone. When asked to address these comments, Lubin called Vitalik “brilliant,” but at the same time disagreed with him on this issue since Blockchain technology is not going to simply vanish. Countries along with the biggest corporations around the globe are already utilizing this nascent technology, so it will have an enormous impact on how whole economic and political systems are built.

Regulators are on the right path  


The issue of regulations, which is a matter of pressing concern in today’s crypto space, was also discussed during the interview. In particularly, Lubin was asked about Goldman’s recent decision not to open a cryptocurrency trading desk. Unlike TechCrunch founder Michael Arrington, Lubin is entirely satisfied with current the regulatory progress in the US and around the world with regards to virtual assets. He claims that SEC’s William Hinman concluded that consumer utility tokens cannot be considered securities if they are properly marketed.

Lubin also weighed in on the approval of a new dollar-backed coin Gemini Dollar (GUSD). He claims that such projects are necessary in order to build out a crypto economy.

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It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst


It Could Take Bitcoin 22 Years to Retest Its ATH: UBS Analyst
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The fact that Bitcoin saw its price breaking above $5,000 at the beginning of April made everyone highly optimistic about the prospects of a full-fledged bull run. However, crypto bulls shouldn’t hold their breath since it could take decades for the number one currency to recover from its epic downfall.

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Bitcoin compared to other bubbles  

After comparing Bitcoin to other bubbles, UBS analyst Kevin Dennean came to a conclusion that BTC will most likely follow their lead, Business Insider reports.
However, here’s a catch – Bitcoin will have to undergo a long-lasting recovery, so it is not reasonable to expect another bull run in the nearest future. For comparison, it took the Dow Jones Industrials 22 years to reach its previous peak.   


‘We're struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are,’ Dennean claims.

Bitcoin compared to other bubbles  

Picture: ©FactSet

With that being said, it is still not guaranteed that a certain bubble retests its ATH even after decades since a big burst. Nikkei, despite reaching its 20-year highs in October 2017, was still 50 percent lower than its ATH that was recorded in 1989.

Nikkei

Picture: ©ATLAS

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When you lose, you win

During the peak of the crypto market, Bitcoin was frequently compared to the infamous tulip mania, but these two barely had anything in common (except for the horrible stability of value). Hence, it hardly makes sense to apply a certain pattern and expect Bitcoin to behave in a similar fashion to other bubbles.

Historically, enormous price crashes actually benefited Bitcoin. As reported by U.Today, Bitcoin trader recently noticed that the BTC price rise 5.1-16.89 times every 70+ percent plunge. Crypto bulls have every reason to expect a similar outcome this time around.

'Shadow of bull statue on texture tiles floor metaphor of bull market is coming for stock market or investment asset' image by 123rf.

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