One of the landmark events in crypto history was the explosion of the value of Bitcoin a few years ago. It created overnight millionaires and launched cryptocurrency into public consciousness. Since then, various individuals and corporations have attempted to recreate this success with many entering the cryptocurrency market in a bid to get rich quick, to varying levels of success.
However, it seems like cryptocurrency is nearing its peak in terms of growth and value, at least according to Vitailk Buterin, the co-founder of ethereum.
Coming to a Halt
In the past, it wasn’t unheard of for cryptocurrencies to see hundredfold growth after launching.
Since its inception, cryptocurrencies have seen worldwide acceptance and fame, with most people being at least aware of the more famous currencies such as bitcoin and ethereum.
Like any other emerging market, the popularity boost helped bring in new participants into the market and drive sales. However, the market has become very saturated in the last few years and this might actually slow down growth.
When speaking at a conference in Hong Kong, the Ethereum co-founder Vitalik Buterin said,
“If you talk to the average educated person at this point, they probably have heard of blockchain at least once. here isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.”
The growth that cryptocurrencies have experienced so far has been driven by the increased acceptance of the currencies. As a result, many currencies have seen enormous growth since they launched.
According to Buterin, now that the market has been saturated and growth will stall, the next step is to actually develop the market and work to increase its acceptance and application beyond a potential investment.
A number of businesses now accept cryptocurrencies as a form of payment and more and more exchanges are springing up.
“Go from just people being interested in real applications of real economic activity,” he said.
Several currencies have experienced a significant drop in value in the last few months and years.
Ether, for example, has seen an almost 80 percent loss since it experienced a high in January 2018.
Bitcoin has had a similar fate, seeing a 50 percent drop in value since a high in December 2017.
These declines point to a saturation of the market and a generally accepted belief that cryptocurrencies will not likely see a resurgence to the record high they recorded years ago.