“The blockchain space is getting to the point where there’s a ceiling in sight,” Buterin says in an interview with financial news agency Bloomberg. “If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.”
A strategy nearing its end
Buterin, who was interviewed at the Ethereum Industry Summit in Hong Kong, explains that growth in Bitcoin and other cryptocurrencies in the blockchain community through its first six or seven years was dependent on marketing and trying to get wider adoption.
However, “that strategy is getting close to hitting a dead end”, he argued. Now, it’s time to get people already interested in crypto to become further involved, he added. “Go from just people being interested in real applications of real economic activity.”
Blockchain investment and advisory firm Kenetic Capital managing partner Jehan Chu slightly disagrees with Buterin. He believes there may still be a chance for more growth in 2019 as cryptocurrencies continue to move forward. “There are deep reservoirs of value just waiting for the right trigger,” he adds.
Buterin downplayed the collateral effect on the price of Bitcoin and Ether of Goldman Sachs’ “fake news” that it was dropping plans for a crypto trading desk. “I honestly don’t think this stuff matters much. There’s honestly a part of me that would be happier if institutional trading of cryptocurrencies did not happen at all for another five years,” Buterin said. “Ultimately if all that cryptocurrency is, is this thing that millionaires keep buying and selling to each other, then what have we really accomplished?”
Ethereum to drop further?
Bloomberg Intelligence commodity strategist Mike McGlone predicts Ether may fall further to a support target of $155 (£120) due to increasing competition, market volatility and an industry that is still maturing.
McGlone’s forecast differs from that of EF Hutton’s Director of Research for Digital Assets Christopher Daniels, who told Coin Rivet that the crypto market correction had reached its low point. He added it was now a good time to get involved in top-rated cryptocurrencies. He said one of those is Bitcoin Cash.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.