The price of cryptocurrencies, such as Bitcoin and Ethereum, have been exceptionally high in the last few months. However, the digital coin market is known to be extremely volatile, and the recent depreciation in values have investors concerned. JP Morgan CEO, Jamie Dimon, and Ray Dalio from Bridgewater Associates, believe that digital currencies are a scam and that all such currencies are bound to fail. Ethereum co-founder Joe Lubin, however, says that he does not care about valuations, as the market is bound to go through ups and downs from time to time. Lubin’s answer to whether or not cryptocurrencies exist in a bubble is a clear “yes”.
During an event hosted by Quartz and Retro Report Lubin said, “of course it’s a bubble.” However, according to him, “bubble bursting” is a silly concept as it is not necessarily a bad thing for technology. He believes that "bubble bursting" might actually prove to be beneficial in the long run. “Hopefully it’s one in a series of increasingly larger bubbles. These bubbles bring attention, they bring value into the ecosystem. That value is recognized by software developers and business developers, and they create fundamental value and projects that grow the new architecture,” he added.
Ethereum is a widely popular Blockchain-based platform. It pioneered the development of smart contracts, and has helped grow the digital currency’s market capitalization and valuation. Its unit of cryptocurrency, Ether, has managed to hold on to most of its gains this year but has not been able to regain its all-time high of $414 USD.
On the other hand, Bitcoin managed to reach a record-breaking high of $6,000 earlier this month, despite being 11 times more volatile than the post-Brexit exchange rate between the British pound and the US dollar. Even a third hard-fork of the Bitcoin Blockchain hardly affected its price.
Ether’s market price is currently $365. Recent trends show that Ether's market price has been struggling to stay at the $300 mark. Lubin is not worried about the coin’s volatility, however, and believes that it is simply due to the small number of people using the currency when compared to that of traditional currencies. “As their monetary base grows, I think the volatility will decrease significantly. There are many state-issued currencies on this planet that are as volatile, or more volatile, than Bitcoin or Ether,” he stated.
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Ethereum co-founder admits “it’s a bubble”
During an event hosted by Quartz and Retro Report Lubin said, “of course it’s a bubble.” However, according to him, “bubble bursting” is a silly concept as it is not necessarily a bad thing for technology.
Published on Oct 29, 2017 20:35 By Danish Yasin