Vitalik Buterin, co-founder of Ethereum and one of the most influential personalities within the crypto-verse, commented that the ecosystem’s enthusiasm for cryptocurrency ETFs is not really what people should be focusing on right now.
Currently, the crypto markets are experiencing a bullish run that many fundamental analysts attribute to investors’ expectations for possible approval of crypto ETFs, specially in Bitcoin.
For the mastermind behind Ethereum, the focus should be on adoption rather than speculation:
He criticized the fact that the community is concentrating on aspects that are not important in the long run. From a fundamental point of view, his opinion is well-based. Further adoption would imply the need to acquire more tokens, thus increasing their price. So even from an economic point of view, adoption is attractive to speculators.
In fact, it was precisely the increasing adoption of cryptocurrencies what has raised the prices of Bitcoin and Ethereum to astronomical levels in less than a decade.
Vitalik Buterin’s words are an intense reflection of the crypto-currency reality nowadays, where one group sees cryptos as a substitute for fiat money and an essential mechanism for future economic transactions, while the other focuses merely on speculation.
Most exchanges have grown thanks to the increase in the number of crypto users, generally of those who are inclined towards speculation. This fact has always been attacked by Vitalik Buterin who has, directly and indirectly, made calls of conscience to the community on several occasions.
Are ETFs THAT Important?
Last week, after the revelation of the SEC’s decision to reject the proposal for a Bitcoin ETF presented by the Winklevoss twins, a drop in Bitcoin prices was triggered, slowing a momentum that was replicated by the rest of the cryptocurrencies.
Also, it is important to note that after the letter from SEC Comm. Hester Pierce rejecting the decision, prices stabilized, and confidence in the markets returned.
There is currently some expectation regarding this issue. Renowned investors have predicted that sooner or later the regulatory bodies will approve ETFs and other financial instruments based on crypto money.
Vitalik Buterin Believes More In Scalability And Less In Speculation
Vitalik Buterin has emphasized that he is working hard on making mass-adoption easier by addressing problems such as scalability or interoperability. Recently, on an interview with Tyler Cowen he said:
“Ethereum blockchain’s capacity right now is about 15 transactions a second. If you even consider something like putting all of the Uber rides on the blockchain, that’s 12 transactions per second already. I do feel just raw ability to process more transactions per second is important, and that could happen through sharding and other base layer scalability upgrades to the system which we are working on”.
Apparently Bitcoin and Ethereum have already bottomed out; however, their high volatility has made it essential to be always on the lookout for the latest news. Not only is technical analysis relevant for investments, but in the crypto-verse, fundamental analysis is a tool that is becoming more and more necessary every day.