Vitalik Butrin: Starting a downturn in favor of digital currency space!

Vitalik Butrin, creator of Atrium and one of the most well-known figures in the digital currency space, has said that the recent reversal of the market and the downward trend in prices could be beneficial for the growth of this field. He believes that with this change of direction, seasonal investors and some fraudsters will leave the market, and developers will be able to focus more on improving China’s blockchain technology.

To Report Atrium’s co-founder Vitalik Butrin’s Bloomberg ‌ said that falling prices these days, while somewhat discouraging investors, could be to the benefit of the digital currency space.

He says:

Many who are deeply involved with digital currencies and focus on building new things will welcome the downturn. They welcome this downward market because during the long-term growth of prices, obviously many are satisfied with the market conditions; But such a situation attracts the attention of many seasonal and short-term investors.

After the record-breaking price of digital currencies in early November, the overall market trend declined. This change in direction was partly influenced by the changing sentiments of investors as well as seasonal traders. They predicted that by the beginning of 2022, the amount of monetary stimulus offered by governments to improve the economic conditions resulting from the corona epidemic in the market would decrease. The Bloomberg Galaxy Crypto Index, a tool for measuring the performance of digital currencies using their market value, is now 45 percent away from its all-time high. Over the same period, the price of Atrium, arguably the most widely used Chinese blockchain network, fell by درصد 40%.

Since the formation of the last broadly declining market dating back to 2018, the digital currency space has grown rapidly and skyrocketing. There are currently 12,588 active tokens listed on CoinGecko’s website. The currencies that entered the market during the recent upward trend of digital currencies made many people millionaires or even billionaires overnight; But making a profit in the marketplace usually means losing out on others. Projects such as “pump and dump” prices, which are aimed at manipulating the market, are usually associated with those who have entered the field only for profit in the short term.

“At the age of 28, one of the billionaires in the digital currency space,” said Vitalik Butrin.

During declining markets, many of these projects are destroyed and you can find out which projects are still sustainable in the long run and have a stable work model, team and community.

Butrin said he was surprised by last year’s jump in the digital currency market, and while he had previously said he welcomed the recent downturn, he added that he was not sure another downturn had begun and that the change might only reflect Fluctuations are related to other financial markets.

He said in an interview a week ago:

The nature of the digital currency market as a financial market controlled by a very special group of investors seems to have changed and disconnected from traditional financial markets, and now it seems that digital currencies are one of the mainstays of They are independent financial markets.

The creator of Atrium said that the declining market could help those in the digital currency space who are building projects that focus more on improving the technology.

Butrin’s comments came shortly after the Wormhole Intermediate Bridge was robbed of $ 300 million during a hacking attack. He had earlier warned in January about the dangers of using mid-range stairs. These platforms, more commonly known as mid-chain bridges, typically work by receiving a digital currency over a specific network and then locking it into a software program called a smart contract. By doing this, they can provide an alternative token to the user on other networks.

Butrin has focused more on atrium scalability in recent years. Atrium has long been widely criticized for its high fees and slow network transactions. The Atrium Foundation, led by Vitalik Butrin, is also completing its efforts to improve the scalability of the Chinese bloc by implementing an update that is likely to be discussed later.

“Butrien has said about the scalability of the atrium:

We do not want to face the fact that the Atrium blockchain does not have enough space for everyone when people start using the network again.