Will cryptocurrency be more volatile than gold and the stock market?

0
  • The cryptocurrency will be almost as volatile as the stock market, according to Vitalik.
  • In the long run, fees will be the only source of security for , says Vitalik.

In a recent interview, blockchain technology co-founder Vitalik Buterin expressed his views regarding the future of cryptocurrencies. According to Buterin, in the medium term, cryptocurrencies will stabilize and become volatile like gold or the stock market.

Vitalic said:

I really think in the medium term cryptocurrencies will stabilize and be about as volatile as gold or the stock market. The main question is at what level prices will stabilize. In my opinion, a lot of the early volatility was tied to existential uncertainty.

Vitalik’s Concern About Bitcoin

Buterin said that if Bitcoin doesn’t replace gold as a store of value and replace the mainstream, it won’t disappear from the world in 2042.

He added:

The mathematical way to put it would be: the price of the crypto is locked in a bounded range, and the crypto can only remain highly volatile within that range for so long until repeated buying at high prices and selling at low prices become a guaranteed mathematically almost sure gain. arbitration strategy.

Vitalik further expressed his concerns about Bitcoin and its security. According to him, in the long term, fees will be the only source of security for Bitcoin. Additionally, the market dominant is currently failing to generate enough fee revenue to secure a system that has the potential to be worth trillions of dollars. BTC transaction fees currently stand at around $300,000 per day and have barely increased over the past five years.

According to Vitalik, the Ethereum blockchain is much better designed for ease of use and applications and is much more successful. Moreover, moving from proof of work to proof of stake seems politically impossible given the lesser security.

recommended for you

  • Ethereum Price Plunges Ahead of Merger Upgrade
  • Ethereum Foundation sets final date for mainnet merger
Share.

Comments are closed.