Buterin Says that ETFs Should Matter Less than Scalability
According to Vitalik Buterin, the co-founder of Ethereum, the importance being given to cryptocurrency ETFs is not what the industry requires right now, but a greater emphasis should be placed on global adoption and scalability.
Buterin, whose opinion is highly valued in the cryptocurrency world, believes that the focus should be not on speculation, but adoption. He said,
I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.
He criticized that the community is focusing more on aspects that will not be important in the long run. His opinions are well thought out. Higher adoption would mean the need to acquire more tokens which in turn will increase their price. So from an economic point of view, adoption is attractive for speculators.
In less than a decade, it is the increasing adoption of Bitcoin and Ethereum that have raised their prices. Buterin’s words reflect the intense debate in the cryptocurrency industry. In this debate, one group sees crypto as a replacement of fiat currency and essential for future economic transactions, whereas the other group focuses on speculation.
Most crypto exchanges have grown because of the increasing number of users who focus on speculation. This is something that Vitalik Buterin has always been opposed to, and has, directly and indirectly, made the crypto community aware of this.
He has emphasised multiple times the importance of scalability and that he is working hard on making mass adoption easier. Recently, in an interview Buterin said,
Ethereum blockchain’s capacity right now is about 15 transactions a second. If you even consider something like putting all of the Uber rides on the blockchain, that’s 12 transactions per second already. I do feel just raw ability to process more transactions per second is important, and that could happen through sharding and other base layer scalability upgrades to the system which we are working on.
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