Vitalik Buterin, who is the co-founder of the second largest cryptocurrency in the world utilizing market capitalization, known as Ethereum and one of the most influential personalities within the crypto-verse, noted that the community is placing too much attention towards Bitcoin EFTs. Instead, he reiterated the importance of creating some ways of facilitating smaller, as well as retail investors in the market.
Nowadays, the crypto markets experience a bullish run which many fundamental analysts attribute to the expectations of investors for possible approval of crypto ETFs, especially Bitcoin. Following the Bitcoin ETF saga from recently, the co-founder outlined that the public will place too much emphasis on cryptocurrency exchange-traded-funds, when, instead, the focus should be on making means for some smaller investments.
Increasing adoption of cryptocurrencies raised the prices of Bitcoin and Ethereum
For the mastermind behind Ethereum, the focus should be on adoption rather than speculation.
Vitalik criticized the fact that the community is concentrating on aspects which are not significant in the long run. From a fundamental point of view, his opinion is actually well-based. Some further adoption is going to imply the need to acquire more tokens, in that way increasing their price. Even from an economic point of view, adoption is attractive to speculators.
What precisely raised the prices of Bitcoin and Ethereum to astronomical levels was the increasing adoption of cryptocurrencies in less than a decade.
The words of Vitalik are the intense reflection of the crypto-currency reality these days, where one group sees cryptos as a substitute for fiat money, as well as an essential mechanism for future economic transactions, while the other group focuses merely on speculation.
Most of the exchanges have grown thanks to the increase in the number of crypto users, generally of those that are inclined towards speculation. This fact has always been attacked by Vitalik Buterin who has, directly and indirectly, made calls of conscience to the community on several occasions.
How important are ETFs?
Bitcoin ETFs have become a widely discussed topic in the past few days. CBOE Global Markets has listed an application for a VanEck/SolidX commodity-backed Bitcoin ETS on the 2nd of June. It has relatively high chances of getting approved. Unluckily, the SEC is likely to take its time and come up with a formal decision in early March 2019.
Last week, after the decision of SEC, has been revealed, which was rejecting the proposal for a Bitcoin ETF, presented by the Winklevoss twins, there was a drop in the prices of Bitcoin, slowing a momentum which was replicated by the rest of the cryptocurrencies.
Also, another thing which is important to note is that after the letter from SEC Community Hester Pierce rejected the decision, the prices have stabilized, and confidence in the markets also returned.
Currently, there are some expectations regarding the problem. Renowned investors predicted that sooner or later, the regulatory bodies are going to approve the ETFs, as well as some other financial instruments which are based on crypto money.
Vitalik Buterin believes more in scalability and less in speculation
Vitaloik Buterin also emphasized that he is now working hard on making mass-adoption easier with addressing issued like scalability or interoperability.
Apparently, Bitcoin, as well as Ethereum have already bottomed out; however, their high volatility made it necessary to be always on the outlook for the latest news. It is not only technical analysis that is relevant for investment but in the crypto-verse, another thing which is necessary is a fundamental analysis which is a tool that becomes more and more essential every day.