Thursday, October 26, 2017

Ethereum founder admits cryptocurrencies are in a bubble, but doesn't see it affecting valuations going higher

On Oct. 25 one of the co-founder of the Ethereum platform and cryptocurrency was speaking to a publication on the state of the sector and the future of digital currencies.  And in a frank assessment on the valuations of cryptos such as Ethereum, Bitcoin, etc..., Joe Lubin admitted that the current prices were indeed in bubble territory, but that this won't affect valuations going much higher for each currency.

When asked by Quartz about his thoughts on whether digital currencies are in a bubble, Lubin responded with an unequivocal yes. 
“Of course it’s a bubble. Hopefully it’s one in a series of increasingly larger bubbles,” Lubin said. “These bubbles bring attention, they bring value into the ecosystem. That value is recognized by software developers and business developers, and they create fundamental value and projects that grow the new architecture.” 
The popularity of Ethereum’s platform, which is widely celebrated for pioneering the development of smart contracts, has helped grow the digital currency’s valuation and market capitalization. It has also helped attract a legion of volunteer developers who help maintain and update Ethereum’s code, helping to make Ethereum the de facto industry standard for ICOs, many of which are built atop Ethereum’s platform. 
Lubin says that a Gartner analyst recently pegged Ethereum’s developer base at 30 times larger than the IBM-backed Hyperledger project, a competitor in the blockchain space that enjoys all the benefits of having the support of a legacy computing company that has already won the trust of business. 
Turning the conversation toward the volatility in digital currencies, Lubin said it will continue to subside as bitcoin becomes more widely used. 
Speaking to the volatility of cryptocurrencies, Lubin says that it’s just a matter of fewer people using them compared to traditional currency systems, and that it’s an addressable problem. 
“As they get a larger and larger monetary base, I think the volatility will decrease significantly. There are many state-issued currencies on this planet that are as volatile or more volatile than bitcoin or ether,” he said. - Zerohedge

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