Crypto Growth Reaches 'Ceiling,' - Ethereum Co-Founder Buterin Says

Vitalik Buterin, the co-creator of Ethereum, has recently accentuated that the days of 1000 times growth seen in the last few years in the cryptocurrency sector are gone.

 

“The blockchain space is getting to the point where there’s a ceiling in sight, If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000x growth in anything in the space anymore.” Buterin said in an interview with Bloomberg.

 

Ethereum’s co-founder also said that the strategy of aggressive marketing that underpinned the growth in cryptocurrencies throughout its first six or seven years is no longer going to work.

 

“That strategy is getting close to hitting a dead end” he added.

 

He explained that now is the time to improve the infrastructure of decentralized systems, applications, and protocols to encourage consumer interest in blockchain-based platforms.  

Ethereum has been working on the implementation of Sharding and Plasma, two open source projects, expected to heavily escalate the scalability of the Ethereum network in coming times.

 

And, projects such as Cardano and Zilliqa are working on proof-of-stake and Sharding-related solutions to provide alternatives to Plasma and Ethereum-based solutions.

 

After news reports of Goldman Sachs Group Inc. postponing its initiative for a crypto trading desk, basis, cryptocurrency sector still too immature for an institutional entrance; a huge fall in Ether and Bitcoin was noted. While later Goldman CFO Martin Chavez clarified that the report was a fake and the bank never had a timeline for the crypto project.

 

 

"I honestly don’t think this stuff matters much. There’s honestly a part of me that would be happier if institutional trading of cryptocurrencies did not happen at all for another five years," stated Buterin. "Ultimately if all that cryptocurrency is, is this thing that millionaires keep buying and selling to each other, then what have we really accomplished?"

 

It’s worth noting that Ethereum is having a rough 2018, and have lost approx 80 percent of its value since the start of the year, currently trading at less than $200.