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HomeETHEthereum co-founder Vitalik Buterin says crypto will be as volatile as gold

Ethereum co-founder Vitalik Buterin says crypto will be as volatile as gold

Ethereum co-founder Vitalik Buterin remarked that he believes crypto will be only about as volatile as gold or the stock market.

One of the most well-known and adored people of the crypto and blockchain industries is Vitalik Buterin. His co-founder blockchain platform, Ethereum, has formed the foundation for the whole web3 industry. 

In an interview on September 2, Buterin responded to Noah Smith of Noahpinion, saying that cryptocurrencies will be comparable to that of gold or the stock market in the future. He added that Bitcoin adoption will become saturated and returns drop to the level of gold. Buterin remarked that he believes the price of cryptocurrencies will stabilise in the medium term.

What level the prices will stabilise at, in Buterin’s opinion, is the most important question. Buterin states that “in my opinion, a lot of the volatility early on had to do with existential uncertainty. In 2011, when Bitcoin fell from $31 to $2 over a six-month period, many truly weren’t sure if Bitcoin was merely a passing trend that would eventually vanish for forever.”

Buterin thinks that after 2011, there is less uncertainty about cryptocurrencies. It is hard to contest the current popularity of cryptocurrencies. It is possible to read trends that move the crypto markets. Outside of significant news or bull runs, prices don’t change significantly, despite being less mathematically consistent.

Crypto will have a much lower chance of disappearing or taking over the entire world in 2042 and if it was able to establish itself firmly in a few niches by 2040. Crypto will replace gold’s role as a store of value and evolving into a sort of “Linux of finance,” an always-available alternative financial layer that becomes the backbone of really important things. As a result, specific events will have a much greater impact on how crypto will work in the future.

The essential takeaway from the interview is the statement mentioned above. It doesn’t seem like crypto is going away given the current rate of global acceptance.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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