Ethereum Co-Founder Joe Lubin: “Of Course It’s a Bubble”
Joe Lubin, co-founder of Ethereum, believes that cryptocurrencies are in a bubble, but it's not necessarily a bad thing.
As the debate rages on about whether or not cryptocurrencies like Bitcoin and Ethereum are bubbles, the co-founder of Ethereum himself, Joe Lubin, has shared his opinion.
“Of course it’s a bubble. Hopefully it’s one in a series of increasingly larger bubbles. 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,”
Lubin said when speaking at an event yesterday.
This, however, doesn’t mean that cryptocurrencies will lose their relevance. Just like people still need houses after the housing bubble burst, many will still use cryptocurrencies for the benefits that they bring even though their value may fold in the future.
Opinions from some of the world’s largest financial institutions echo Lubin’s statement, but he also adds that cryptocurrency markets are still small, which contributes to their volatility in their dollars-and-cents value. A currency’s fluctuation in value will die down once more people start using it.
“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 added.
At the time he made this statement, Ether was struggling to stay above $300, far from its high market price of $365. The volatility of Ether could be explained by the uncertainty regarding the regulation of ICOs in various countries around the world.
Because of the effects of these bubbles, some investors want to ride the gravy train while its wheels are still rolling. Mark Cuban came out recently advising more “adventurous” folks to invest 10 percent of their savings in either Bitcoin or Ethereum.
The truth is that there’s no way to tell when either of these more “mainstream” cryptocurrencies will experience massive drops or not.
What we do know is that even Ethereum’s co-founder is convinced that the cryptocurrency he had a hand in creating is indeed in a bubble.