Ethereum Founder’s Huge 2040 Bitcoin and Crypto Crash Price Prediction
Bitcoin
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Bitcoin price has fallen sharply since peaking at nearly $70,000 per bitcoin late last year. Ethereum price has also suffered an almighty crash with ethereum co-founder Vitalik Buterin issuing an urgent update warning ahead of ethereum’s major merger upgrade that begins next week.
Now, as the price of other top ten cryptocurrencies BNB
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Ethereum co-founder Vitalik Buterin has remained bullish on bitcoin even as he spearheads ethereum … [+]
“I was surprised the crash didn’t happen sooner,” Buterin told economics writer Noah Smith in an interview.
The bitcoin, ethereum and crypto markets have lost about $2 trillion in value since last November, crashing along with stock markets as the Federal Reserve embarked on a monetary tightening program designed to remove some of the liquidity from the system that had built up over the the covid era with historically low interest rates and stimulus measures.
“In the medium term, cryptocurrencies will settle down and be only about as volatile as gold or the stock market,” Buterin said. “The main question is just what level prices will settle at. In my view, much of the volatility early on had to do with existential uncertainty.”
Pointing to the repeated price crashes bitcoin has suffered over the past ten years, Buterin predicted the “existential” questions that bitcoin, ethereum and other cryptocurrencies “are going to be more and more settled.”
“The math nerd way of saying it would be: the price of crypto is fixed in a limited range (between zero and all the world’s wealth), and crypto can only stay very volatile within that range until it repeatedly buys high and selling. low becomes a mathematically almost-certainly-guaranteed winning arbitrage strategy,” Buterin said.
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Bitcoin price has fallen sharply this year, crashing 70% from around $70,000 per bitcoin and … [+]
After the huge 2021 bitcoin, ethereum and crypto price, cryptocurrencies have started to seep into the mainstream, with adoption on Wall Street, from tech companies and countries – notably El Salvador – with Buterin saying crypto “finally feels meaningfully useful”. As adoption increases, Buterin predicts the market will settle further.
“If, by 2040, cryptocurrency has made its way robustly into a few niches: it replaces gold’s store-of-value component, it becomes a kind of ‘Linux of finance’, an always available alternative financial layer that ends up being the backend of really important things , but doesn’t completely take over from the mainstream, then the chance of it either disappearing or taking over the world completely in 2042 will be much less,” Buterin said, speaking just a week before ethereum’s long-awaited merger upgrade is underway. “Individual events are going to matter much less to that possibility.”
Next week, ethereum will begin its transition from the energy-intensive proof-of-work consensus mechanism to the more power-efficient proof-of-stake with the bellatrix hard fork on Tuesday.
