So what if cryptocurrency prices have been on a downward slope since the beginning of this year? It’s nowhere near bad enough to stall the ongoing growth of the crypto space, according to Ethereum co-founder Joseph Lubin who recently appeared on Bloomberg to talk about the current state of the global digital assets market, and the 2017 crypto “bubble”
Lubin pointed out that the ever-expanding crypto space is too resilient to be negatively affected by the recent price collapse. He acknowledged that the record growth of the market towards the fall of 2017 was indeed a “bubble”, albeit one that strengthened the ecosystem. He also added that it was not the first-of-its-kind bubble the market had encountered.
“We’ve seen six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening but when you look back they look like pimples on a chart,” he told Bloomberg.
“With each of these bubbles we have a tremendous surge of activity and that’s what we’re seeing right now.”
He claimed that following the 2017 bubble during which crypto prices were hitting one high after another, the ecosystem saw tremendous growth in developer activity on crypto and blockchain-focused projects. If his assessments are correct, the number of those projects probably grew “two orders of magnitude.”
“Each of these bubbles has the advantage of bringing attention into our ecosystem. It brings entrepreneurs. It brings developers. It brings money. It brings the prospect of building fundamental infrastructure and creating more value.”
He also noted that the market cycle, as it stands today, will lead to the demise of many crypto/blockchain projects. Many tokens will perish, while ones with long-term potential will flourish. He said:
“It’s not all that will survive. I think the future of the decentralized world wide web is hundreds or thousands of decentralized protocols. Some of them will be like Ethereum, and Ethereum is orders of magnitude bigger than anything else, and it’s growing faster than everything else.”
Lubin, who founded ConsenSys Inc. after parting ways with Ethereum, emphasized that blockchain and its derivative products will eventually play a significant role in all walks of life. For example, he predicts, there will be decentralized bandwidth, decentralized storage, decentralized heavy compute, and a range of other protocols that will (hopefully) have inter-compatibility with one another.
The Ethereum co-founder is definitely keen on taking his current venture, ConsenSys at the forefront of this blockchain revolution. The company has already made itself a name as a reliable platform that helps startups come up with smart contracts, decentralized apps (dApps), and the likes.
Meanwhile, on the question of speculative investors’ role in the ecosystem, he said they don’t seem worried that plummeting prices could hinder the burgeoning improvement in infrastructure and adoption. Lubin also noted that this is the same group of traders who are largely responsible for the high volatility across the crypto market.