Ethereum Co-Founder: Sinking Price of Crypto Will Not Hurt Growth
Ethereum (ETH)–Joseph Lubin, one of the co-founders to the second largest cryptocurrency by market capitalization Ethereum and current CEO of ConsenSys Inc., told Bloomberg in an interview published yesterday that he is not concerned with the sinking price of cryptocurrency or the overall impact it will have upon the growth of the industry.
While investors across the world reel from double-digit losses to extend an already taxing market in 2018, Lubin is confident that the industry will continue it’s march of adoption and growth that has characterized 2018 despite the otherwise bearish atmosphere. In particular, Lubin cites last December’s massive bull run, which bled over into the early weeks of 2018, as being bubble-like developments that are similar to price increases in the past. As Lubin points out, the past occurrence of BTC and cryptocurrency in general spiking in price, followed by a crash (hence creating multiple bubbles over time) is just par for the course, and each time getting slightly worse. While the bubble makes for a terrible experience to investors having to survive the bear market, it doesn’t indicate that the industry is failing in terms of development or adoptive achievement. Lubin claims there have been,
“six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening.”
Despite being all consuming during the bubble, looking back on the ebb and flow of the market reveals a more steady movement in price, which Lubin refers to as ‘pimples’ on the chart. He also finds, in some small part, the severity of the crash to be indicative of the industry’s growth. The most recent crash has been that much more severe due to the fact that cryptocurrency is spreading, ICOs are on the rise, more projects are being developed with intriguing concepts compelling investors to pour money into,
“…we build more fundamental infrastructure, we see a correction, and the potential gets even more impressive… I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem. We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago.”
Lubin, like other leading authorities in the industry of cryptocurrency, blames part of the crash and price volatility on the large number of speculative investors swaying the market, creating unhealthy conditions and myopic goals. Lubin, who helped co-found Ethereum alongside the outspoken Vitalik Buterin, has put his primary focus on growing the cryptocurrency industry in terms of utility and building greater adoption rather than through a price-focused discourse. Having the market dominated by speculative-driven investors is not a proper indicator of how the actual industry and underlying technology is performing,
“So we can look at the price and make growth plans and projections, and we’re still on track, basically. So this is not unexpected.”