Explosive Crypto Growth Days Are Over, Ethereum Co-Founder Says

  • Blockchain growth and adoption is already approaching its "ceiling", or maximum potential, Ethereum co-founder Vitaiik Buterin said.
  • Buterin added those interested in cryptocurrencies need to get involved in a more in-depth manner.
  • Crypto users should be encouraged to explore "real applications" and the "real economic activity" associated with digital currencies, he noted.

Ethereum co-founder Vitalik Buterin recently told Bloomberg the blockchain industry has already experienced explosive, or exponential, growth and “there isn’t an opportunity for yet another 1,000 times growth in anything in this space anymore.”

Blockchain Growth Approaching "Ceiling"

Buterin added that the “average educated person” has heard of distributed ledger technology (DLT) by now at least once. He also remarked:

“The blockchain space is getting to the point where there’s a ceiling in sight.”

Vitalik Buterin

As such, we can no longer expect more significant “growth in anything in [this] space,” Buterin said. Going on to explain the growth and adoption of bitcoin (BTC) and other cryptocurrencies, Buterin added that marketing by the blockchain community during the first six or seven years of their existence helped people become more aware of them.

According to the Russian-Canadian programmer, the marketing strategy that has been used so far to encourage people to use digital currencies is “getting close to hitting a dead end.” Those who are now genuinely interested in cryptos need to get involved in exploring the “real applications of [their] real economic activity,” Buterin noted.

Notably, the blockchain developer’s comments come at a time in which the Ethereum blockchain’s native token, ether (ETH), had dropped below the $200 mark. Ether is currently trading at $201according to CryptoCompare data, and its value has now declined well over 70% this year.

Cryptocurrency Prices Decline Further

Bitcoin, the flagship cryptocurrency, has also plummeted and is trading slightly below $6.400 at press time. This, after briefly surpassing the $7,000 mark on August 28. Most market analysts have attributed the recent (and further) drop in cryptocurrency prices to reports claiming Goldman Sachs postponed its plans to launch a crypto trading desk. The financial institution's CFO has since then revealed the Goldman Sachs is still working on it.

As CryptoGlobe reported, Stephen Innes, the chief investment officer at SFG Alternatives, remarked that Goldman Sachs delaying the launch of its crypto trading platform would be “a huge blow” to the digital currency market.

Innes said that cryptocurrencies will remain “thinly traded” because of the lack of proper “regulatory oversight” and the “intense, intense scrutiny” over fraudulent activity associated with them. It is also unclear whether bitcoin and other cryptos are currencies or commodities, and if they’re supposed to be a store of value, they’re doing a “very poor” job of retaining value, Innes argued.

Coldplay’s Guy Berryman Backs Crypto Startup Zumo

Michael LaVere
  • Coldplay's star bassist Guy Berryman is backing Scottish cryptocurrency start-up Zumo.
  • The Edinburgh-based company recently launched an app for buying and sending bitcoin and ethereum. 

Coldplay’s star bassist Guy Berryman is backing the Scottish cryptocurrency startup Zumo, which recently launched its new smartphone app. 

According to a report by Yahoo Finance, the Edinburgh-based cryptocurrency startup has recently launched a new application for transferring and spending cryptocurrency. The Zumo wallet allows users to store and send bitcoin and ether, in addition to purchasing BTC directly. The wallet also claims to be fully decentralized, giving users control over their private keys. 

Nick Jones, CEO and founder of Zumo, told Yahoo Finance, 

Covid-19 has fast forwarded the move to a cashless society and for safe and easy ways to invest in new forms of currency that are more resilient to crises such as this one.

Jones continued, saying that Zumo was created for everyone, including those without bank accounts. He highlighted the importance of “ordinary people” having control over their money, particularly in light of the global economic crisis created by the COVID-19 pandemic. 

In addition to Coldplay’s Guy Berryman, the start-up has attracted investment from Murray Capital and the Scottish Investment Bank. 

Featured Image Credit: Photo via Pixabay.com