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Joseph Lubin, co-founder of Ethereum and CEO of ConsenSys. Astrid Stawiarz / Getty Images for the Tribeca Film Festival
The Bitcoin bubble has sprung up once again.
Activated by the SEC's delay on a key decision on Bitcoin's ETF and exacerbated by the sell-off of investors, the price of Bitcoin in dollars has plunged by more than 20 percent in the last two weeks. Many of his rival coins have seen even greater losses.
However, Joseph Lubin, co-founder of Ethereum, the worst mainstream cryptocurrency of the last round of collapse (the value of Ethereum has shrunk by a third), is not a problem. t worried at all On the contrary, he sees the current cryptic tumult as a positive sign for his future growth.
"We have seen six big bubbles [since Bitcoin was invented in 2009] each more epic than the last," Lubin said in an interview with Bloomberg TV Wednesday. "Each of these bubbles was amazing when it happened, but when you look back, they really look like pimples on a chart, because growth has been exponential, it's actually going quite well."
That's true. Despite the sharp decline of Bitcoin in recent weeks, the price of Bitcoin is still 50% higher than its value a year ago
More importantly, Lubin said that the frequent fluctuations in the prices of cryptocurrencies offer a good opportunities to attract talent and resources in the esoteric blockchain industry to advance its core technology.
"Each of these bubbles has the advantage of attracting attention in our ecosystem, bringing business owners, developers, money and the prospect of building fundamental infrastructures and creating more value," he said. "There is a strong correlation between price increases and the growth of fundamental infrastructures."
During the early collapse of Bitcoin prices, many in the investor community drew the inauspicious comparison between the Bitcoin bubble and the dot-com bubble in the early 2000s, warning that the cash value of crypto it could go down to zero at any moment.
What has made Bitcoin even more unique, however, is the frequency with which the Bitcoin bubble has popped up. Only this year, Bitcoin has collapsed for the fifth time. Is this the last one? Otherwise, when will the next big collapse be?
According to Lubin, Bitcoin is destined to collapse, although it is not realistic to establish when, as long as its underlying technology will continue to move.
"The thing about dot-com bubble is that things were so slow at the time that there was only one increase and a collapse, and [after that] a steady growth over time," Lubin explained. . "Things are moving so fast, and the rate of development is so fast right now, that [every time] we build on these technologies, we see a rapid increase, and therefore a rapid correction due to the cycle of people from fear and Greed rush into the cryptic space because they see the promise of this technology. "
Currently, the blockchain community has surpassed what it calls" layer one "technology, which is focused on creating trust among users on a decentralized platform. , for "level two" technology focused on scalability. Developers are creating tools to enable blockchain-based products to process large amounts of transactions in a short period of time – similar to what the Internet has achieved since its inception.
Lubin predicted that many important discoveries in the scalability of this year's blockchain will be discovered, although in the long run, it will always be a challenging area.
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