Last week, as reported by smartereum.com, statements from Vitalik Buterin – the creator of Ethereum (ETH) – and Changpeng Zhao – the CEO of Binance – made the digital currency community to speculate on the possibility of the digital currency market making a return of 1,000x in the long run.
On the 8th of September, Vitalik Buterin said that with the awareness of digital currencies by the public and the mainstream reaching its peak late last year, it is not realistic for the digital currency market to see an increase of 1,000 times.
Misreporting About The Initial Statement Of Vitalik Buterin
Given the context and statement of Buterin regarding the awareness of digital currencies, the claim of Buterin was quite straightforward. While it’s possible that decentralized apps and systems saw a thousand-fold increase in user base and activities, it is unrealistic to expect the value of the entire digital currency market to increase by 1000x times, bringing it from its value around $200 billion to $200 trillion, anytime soon.
Nevertheless, out-of-context social media posts and exaggerated headlines misled so many of the digital currency community to misunderstand the statement of Buterin as a pessimistic take on the growth rate of the digital currency industry. As more people started questioning the motive of Buterin in his rather simple statement, Buterin released a follow-up explanation, confirming that, although he finds it difficult to see the value of the entire crypto market reaching $200 trillion, exponential growth in the use of blockchain protocols and decentralized applications is possible.
Buterin’s view towards the growth of the digital currency market, in the long run, is sensible, as it would be difficult for digital currencies to represent the majority of the wealth in the world. Rather than expecting unrealistic returns, he said that it’s vital to focus on the growth of blockchain protocols and decentralized applications to speed up the process of increasing the usage of digital currencies and blockchain-based systems.