The creator of Ethereum claims that the ‘Elon effect’ will gradually lose influence on cryptocurrencies Vitalik Buterin, the “father” of Ethereum recently gave an exclusive interview with CNN about the recent volatility of the cryptocurrency market. The 27-year-old billionaire said that “the crypto market is in a bubble” and “it is very difficult to predict” when this bubble will burst. According to him, the “golden age” of digital currencies has passed and this crisis can last for several months. Earlier, on the morning of May 19, Coinbase recorded that Ethereum, Buterin’s “pet”, fell more than 40%, to below $ 1,900. By the morning of May 20, this coin had recovered to $ 2,700, however, this is still a low number compared to the record milestone of $ 4,384 that Ether achieved on May 11. The ups and downs of the Ether coin have made Buterin “father” pay a significant price when he is holding an asset worth about $ 1.1 billion, now reduced to only about $ 870 million. At the age of 27, Vitalik Buterin, a Russian-Canadian programmer, is already considered a veteran founder in the tech world having seen multiple cryptocurrency boom cycles over the past few years. “We’ve seen at least three crypto bubbles burst. Usually the reason bubbles end is because something happened. This shows that the technology of cryptocurrencies is still there. not ready,” Buterin said. Since late 2013, when preparing for the launch of Ethereum two years later, Buterin has expressed his vision for cryptocurrencies. According to Buterin: “Cryptocurrency has become more than just a toy. It is almost ready to become mainstream.” In the process of developing “pet” Ethereum, Buterin is also not afraid to assert that there is a possibility that Ethereum will eventually catch up and surpass Bitcoin in market value. However, the programmer also said that the cryptocurrency market tends to be “vulnerable” to disruptive events, before they can “build an immune system over time”. Typical is the influence of some billionaires who are treating cryptocurrency as a toy. Mr. Buterin isn’t shy about mentioning Elon Musk’s name: “Mr Musk’s tweets are something the crypto space has only been getting into for the first time in recent months, literally. I think it’s appropriate. It’s reasonable to expect a bit of madness. Because the market will learn a lot from that and will be immune to the Elon Musk effect.” In addition, Mr. Buterin also asserted that governments cannot completely ban but have the ability to block or restrict access. Therefore, the development of cryptocurrencies also needs to listen to regulations from regulatory agencies to avoid getting into legal troubles. Faced with the crisis of digital currency, the “father” of Ethereum thinks that this is a “quiet” for digital currencies to renew themselves. On the Ether side, Mr. Buterin said the coin’s transaction costs will soon be cut. A major technical overhaul is underway that will allow Ether transactions to quickly scale, while cutting the amount of electricity consumed by mining by 1,000 to 10,000 times. “We’re going to go from consuming energy similar to a medium-sized country to just consuming energy like a village,” Buterin said confidently. According to Buterin, if Ether’s competitors don’t reform technically, Ether will soon outstrip them, such as Bitcoin.

Ethereum has skyrocketed in recent times. (Source: CNBC) Price hits all-time high According to Coin Metrics, Ethereum (also known as Ether) reached an all-time high of $4,196.3 at 12:15 p.m. on May 10. The value of Ether is up nearly 7% in the past 24 hours and is currently at $4,141.99. The total market capitalization of this coin is $476.3 billion, almost half the market capitalization of the world’s largest digital currency – Bitcoin ($1.1 trillion). With the new milestone just set, the price of Ether has increased 5 times from the price of $ 800 at the beginning of 2021. Compared to the same period last year, the price of Ethereum has increased about 20 times in just 1 year. . Ether was founded in 2013 by Russian-Canadian programmer Vitalik Buterin and several other crypto entrepreneurs. Similar to Bitcoin, Ether operates on the Blockchain technology platform. The biggest difference between Ether and Bitcoin is the intended use and core technology. Ether was created with the goal of becoming a platform for smart contract development. Ether serves as a means of paying for the network’s operating costs. Meanwhile, Bitcoin was born with the sole purpose of becoming a means of payment and a store of value. For programmer Buterin, Bitcoin is too limited in functionality. In an interview with Business Insider , founder Ether compared Bitcoin to a pocket computer that “does one thing well,” while Ether is like a smartphone with many apps. Ethereum is not perfect yet However, according to the page CNBC , Ether is not perfect yet. In 2017, the popularity of the game CryptoKitties caused Ether’s network to become severely congested, slowing transactions and causing game developers to raise fees. Scalability is one of the biggest problems with the Ether network today. This cryptocurrency currently works using a proof-of-work protocol (a mechanism that prevents double-spending), similar to Bitcoin. This means that cryptocurrency miners with purpose-built computers must compete to solve complex mathematical puzzles to validate transactions and get the miners’ networks to “mine”. Electrons must consume huge amounts of energy. But Ether is currently “running” an ambitious upgrade called Ethereum 2.0. Specifically, the cryptocurrency moves to a proof-of-stake model and relies on investors holding Ether to process new transactions. Cryptocurrency investors say the upgrade will help the Ether network run at scale, process more transactions at faster speeds, and support applications with millions of users. This can also lead to short-term price increases. However, some experts are still skeptical and refuse to trade digital currencies like Bitcoin and Ether. The latest volatility of the world’s top two cryptocurrencies reminded them of the 2017 crypto bubble, during which Bitcoin surged to a peak of $20,000. But a year later, it “sloped” down to $3,122. Some cautious investors say that the cryptocurrency is in a bubble waiting to burst. What do experts think about Ethereum and Bitcoin? Ed Egilinsky, CEO – Head of Alternative Investments at Direxion said: “Ethereum’s blockchain technology has more uses and functionality than Bitcoin, making it a potentially lucrative game in the long run. Also, at the present time, the price difference between Bitcoin and Ethereum could make Ethereum an ‘affordable’ investment for investors.” “Ether is a blockchain platform that acts like the Apple and Android app stores,” said Pat LaVecchia, CEO of trading platform Oasis Pro Markets. Meanwhile, Bitcoin is a commodity like gold, or a store of value. Unlike Bitcoin, where many properties (such as supply) have been fixed since its inception, the Ethereum platform is still evolving with new updates that promise to improve the system. It’s even entirely possible that regulations change and cause the supply to drop, which will cause the price of Ethereum to continue to rise.” (according to CNBC, Business Insider)

Dogecoin – a cryptocurrency that was born as a joke – has a market cap of more than $ 66 billion. In addition to Bitcoin, Ether and Dogecoin, CoinGecko tracks more than 7,000 other cryptocurrencies. However, according to Bloomberg Most investors want to observe Bitcoin and Ether – the two largest cryptocurrencies in the world. Bitcoin is designed as an exchange currency without the need for any intermediaries. This is a new form of money, verified through encryption technology in peer-to-peer (P2P) systems. The ledger (blockchain) records all Bitcoin purchases. Bitcoin is a store worth more than $ 1 trillion. However, it does not contain any buildings, executives, lawyers, political structures or employment organizations. Bitcoin also does not need an accounting even if it is a digital ledger. Bitcoin and Ether are the two most popular cryptocurrencies in the world. Photo: Reuters. Digital gold Bitcoin token does central work, security, and upgrades for new innovations. Mid-sized computer companies that manage machines carry out transactions. These are called “miners”, just like a digital mining company that mines digital gold. Because there are no intermediaries, Bitcoin can efficiently, inexpensively and unpolitically solve the problem of long-distance value transfers. So far, the Bitcoin system proves to be one of the most versatile technologies we have ever had. Bitcoin has little or no value when it was first activated in January 2009. By April 2021, Bitcoin’s price hit a record of nearly $ 65,000. And Ethereum was developed by Vitalik Buterin – a Russian Canadian teenager – in 2013. Initially, Buterin loved Bitcoin but quickly became dissatisfied with its limits. Buterin is determined to start building a system that can do more. His vision is to create a blockchain that stores smart contracts – executing specific tasks in case certain conditions are met. In other words, the only limit to transactions running on Ethereum is the imagination of the developers. Bitcoin’s price has risen almost 100% since the beginning of 2021, while the price of Ether has climbed nearly 400%. The question is what Ethereum borrowed from Bitcoin. It’s the idea behind a decentralized network that records purchases. Both systems are public and are built on open source software. Both also have miners. They perform complex calculations used to verify transactions and receive new types of digital currencies. The system also received criticism for its high energy consumption. One estimate shows that the Bitcoin network used more electricity than Sweden within a year. Bitcoin has been referred to as a form of “digital gold”. Of course, this cryptocurrency is highly volatile and has seen bubbles crash many times. However, some investors hold Bitcoin as a hedge against inflation due to the limited supply. Bitcoin price is also unaffected by other assets. Therefore, many investors use them to diversify their portfolios. Investors often view Ether as a type of growth investment. They bet on the development of a decentralized ecosystem built on top of Ethereum Phil Bonello Ethereum is also going through a development process. But the first boom happened in 2017 with a series of ICOs (first cryptocurrency releases). Many cryptocurrencies were born, used to exchange Ether and most used the Ethereum blockchain. Ether price then hit a record of 1,200 USD / dong. The second boom comes in 2020 as decentralized finance (DeFi) projects thrive. These startups pay interest on Bitcoin or Ether deposits, mortgage lending or cryptocurrency swaps on decentralized exchanges. The Ethereum network is therefore used for financial management, lending and mortgages. All without banks and brokers. Along with that is the hot development of irreplaceable tokens (NFT), a kind of virtual item that is authenticated by blockchain technology, with the digital signature of the owner. NFT is an indivisible, intact asset stored on the blockchain platform through a smart contract, non-destructive, verifiable, and has no second copy. The work has a name Ev erydays: The First 5000 Days Crypto artist Beeple’s was sold for $ 69.4 million at an auction by Christie’s. Threats of Bitcoin’s monopoly position The prices of Bitcoin and Ether have not fluctuated much between 2018 and 2020, also known as the “crypto winter”. But both benefit when governments pump money heavily into the economy to deal with the effects of the Covid-19 epidemic. MicroStrategy Inc. – a software and consulting firm – and billionaire Elon Musk’s electric car company Tesla has invested in Bitcoin. Wall Street and many other financial institutions are also starting to accept Bitcoin. Morgan Stanley and PMorgan Chase & Co. All open digital tracking channels for customers. Meanwhile, the price of Ether is driven by the activities going on on the world’s most popular blockchain. The company has undergone several upgrades to improve its network. The change is also likely to reduce supply. That will drive up the price by increasing the attraction and limiting the amount of Ether available. “Investors often see Ether as a type of growth investment. They bet on the development of a decentralized ecosystem built on top of Ethereum,” said Phil Bonello, Research Director at Grayscale Investments. , comment. Ether price peaked at more than 4,200 USD / dong on May 10. Photo: Coin Desk. The Ethereum network is used more than Bitcoin, and countless developers are still working on. Bitcoin currently accounts for about 46% of the total cryptocurrency market value, down from 70% earlier this year. The rate of Ether is 15%. However, extreme legal or tax risks could threaten the growth of Bitcoin and Ether in a number of countries. Along with that is the risk of fraud or investors forget the digital financial code. Some observers consider the cryptocurrency boom a bubble. Large institutions – often referred to as “whales”, which hold huge volumes of cryptocurrency – can also adjust prices at will. Even crypto proponents argue that the sector is very volatile. However, Bitcoin and Ether have recovered from a downtrend over the years and are increasingly adopted as a mainstream financial asset.