Skip to content

Cryptocurrencies are more than just “protest” money

June 3, 2020

That’s what Vitalik Buterin, co-founder of Ethereum says The current financial crisis is very different from the 2008 Bitcoin emergedand that the cryptocurrency community has to adjust their thinking accordingly.

Writing in a Twitter thread on June 2ndButerin said that Some of Bitcoin’s most popular stories had not been confirmed this time.

Pandemic and protests

That’s what the co-founder of Ethereum (ETH) said 2020 is not a repetition of the 2008/2009 financial crisis. Rather, he tweeted that it was a “virus crisis”, an “epistemological” crisis and an “authoritarian police crisis”.

Cryptocurrencies are more than just “protest” moneyCryptocurrencies are more than just “protest” money

He questioned the idea that Bitcoin’s inflation narrative was an important aspect of the current situation, especially due to the upcoming deflation spectrum:

Yes, the money printer has turned brrrrr. But that’s a relatively small part of what’s going on, and even there inflation continues to * go down * and not up. “

Buterin added another narrative that maintains this Bitcoin and cryptocurrencies are not correlated with traditional assetsthat had not been confirmed so far. As a test showed a graphic of the crash of the SP 500 in March, at the same time that the value of Bitcoin and other digital currencies fell more than 50%.

Follow the rhythm of time

Buterin said it was time for the community to overcome the mindset demonstrated in Changpeng Zhao’s tweet by Binance CEO: “Bitcoin is peaceful protest.”

“I will say this directly: this attitude is * exactly * what we should continue to expand at this point. Reforming the money is not enough.”

Alternative uses for cryptocurrencies

But if cryptocurrencies aren’t just about financial reforms, what other appropriate use cases are there? Buterin said there are many categories of apps on Ethereum and other chains that go beyond finance.::

“Decentralized publication and communication against censorship, decentralized communities / government / DAOs, DAOs for content curation etc. etc. All important work. “

The co-founder of Ethereum repeated that they were sweeping old ideas and that the community has to accept this new reality::

“2016-20 is a time of ideological adjustment,” said Buterin. “Many old ideologies and coalitions are dying, and many new ones are being born. The hills and valleys on the battlefield are changing. The cryptocurrency space must be carefully observed and adapted to new realities.”