Vitalik Buterin, co-founder of Ethereum (ETH), said on Twitter that the current financial crisis is very different from that of 2008 which led to the birth of Bitcoin.
The crisis of 2020 and that of 2008 are not comparable
According to the creator of ETH, the 2020 and 2008 crises are not comparable
Buterin stressed that the two crises are not comparable, as that of 2020 was caused by the spread of a virus and not by incorrect economic policies.
He also questioned the idea that Bitcoin's price is set to rise thanks to inflation, caused by the introduction of huge amounts of money by the Federal Reserve:
"True, the money printer has made brrrr. But it is a relatively small portion of what is happening, also because inflation is still decreasing and not increasing."
Even the theory that the price of cryptocurrencies is not related to that of traditional finance has not yet been confirmed. In this regard, Buterin published a graph of the contraction of the S&P 500 in March: in the same period, the crypto market also collapsed.
Zhao (Binance CEO): Reforming money is not enough
This week Changpeng Zhao, CEO of Binance, posted the following message on Twitter, provoking Buterin's reaction:
Buterin criticized Zhao's words, arguing that the community should abandon this attitude:
"I think the time has come for me to have my say: this mentality is exactly what we should overcome. REFORMING MONEY IS NOT ENOUGH."
Alternative uses of cryptocurrencies
But if cryptocurrencies aren't just a financial revolution, what are the other use cases of this technology? According to Buterin, the applications of Ethereum and other blockchains go beyond the economic sphere:
"Decentralized, censorship-resistant communication and publication, decentralized governance and communities, DAO, DAO for content care ... all extremely important applications."
Buterin said that all old ideas are slowly being wiped out, and the community should accept the new reality:
"2016-2020 was a period of ideological realignment. Many old ideologies and coalitions are dying, but new ones are emerging. The hills and valleys of the battlefields are changing. The cryptocurrency sector should monitor these changes and adapt to new realities. "
Do you agree with Buterin's ideology or not?
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