Vitalik Buterin, Ethereum’s co-founder, believes the crypto sector is currently in a bubble. While he can’t say for sure when it will end, it might have devastating effects on Bitcoin (BTC). Per Buterin, BTC mining energy requirements are putting the coin at a disadvantage, seeing as it might be left out as the rest of the market continues getting more adoption.
In the interview, Buterin said that the crypto space has had at least three big bubbles to date. As for the current one, which sent BTC close to $30,000, it could have already ended, or that it could continue rocking the market for a few more months.
However, he shared his expertise on what brings crypto bubbles to a halt, saying,
“Often enough, the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet.”
Buterin says BTC should make changes
Buterin’s remarks come after Tesla CEO, Elon Musk, tweeted that the electric vehicle maker has stopped accepting BTC payments until miners find more sustainable energy sources. Following this tweet, BTC plunged, taking the rest of the crypto market with it. While BTC’s effect also dealt ETH a significant blow, energy concerns over BTC’s Proof of Work (PoW) mining mechanism are justified. According to him, Bitcoin’s energy consumption is massive and while it is not a deal-breaker, it is a big downside.
He added that after Ethereum finishes migrating from a PoW consensus mechanism to a Proof of Stake (PoS) one, the network’s energy consumption will decrease substantially. Reportedly, this transition will make the network more than 99% energy efficient. Proud of the greener choices that Ethereum is making, Buterin said that the transition from PoW to PoS would minimize Ethereum’s energy consumption from that of a medium-sized country to that of a village.
He suggested that it’s time for Bitcoin to start making changes as well since community members will soon start demanding that the network adopt a PoS consensus mechanism or a hybrid. If the network fails to heed these calls of change, Buterin believes that it will risk being left behind.