This week is the world of Cryptocurrencies suffered a major collapse and lost about 35% of its total capitalization in one day. Although this surprised investors and markets, Vitalik Buterin, the Billionaire of the Ethereum creator, revealed that he had already expected the bubble to burst.
In an interview with CNN Business, the 27-year-old mogul said that cryptocurrencies are “In a bubble”, but it’s hard to predict when it’s going to explode. “It could have ended (…) It could end in months”Buterin commented.
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According to the specialized cryptocurrency portal CoinMarketCap, on Wednesday morning the price is from Ethereum fell to $ 2,092. That’s 41% less than the $ 3,559 it cost the day before. Although it managed to rebound above $ 2,900 on Thursday, it is trading on a downtrend at $ 2,283 per unit today.
These numbers are still a long way off Record price of 4,337 dollar this was achieved on May 12, according to Coindesk.
Of course they fall ether Effects on the public portfolio of Vitalik Buterinwho was crowned the world’s youngest billionaire just three weeks ago. His account went from $ 1.1 billion to $ 870 million in a single day.
However, the crash of digital currencies did not surprise the Russian-Canadian programmer.
“We’ve had at least three of these big crypto bubbles so far (…). And often the reason the bubbles stop is an event that just makes it clear that the technology isn’t there yet.”said the Ethereum founder.
Currently the ether is the second currency after market capitalization, just behind that Bitcoin. One of the reasons for its growing popularity is that it is used in transactions by NFT or non-fungible tokens, the new “crypto” sensation.
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The sudden collapse of cryptocurrencies can be explained by two key events this week. First, Sunday May 16, Elon Musk stated on Twitter that Tesla would no longer accept Bitcoin as a form of payment. Second, the announcement that China would ban transactions in cryptocurrencies to financial institutions in the country.