As cryptoworld comes to terms with an alleged exit-scam by a key Canadian exchange @MapleExchange on Sunday; a White Knight of the crypto tech world and co-Canadian, Joseph Lubin, Ethereum (ETH) co-founder, Consensys founder claimed “digital currencies” are here to stay!
The contrast between the events happening in cryptoworld, which is the reality, to what is claimed by the big influencers such as the likes of Lubin leave a lot of room for speculation for the crypto-curious and the religious investor of these virtual assets.
Joseph Lubin: cycles of bust and boom
Joseph Lubin in an interview to leading financial media CNBC stated – ”digital currencies are not on the edge of collapse.”
In his interaction with the media powerhouse, Joseph Lubin discussed the ‘cycle’ of growth that these virtual currencies have been subject to, especially in the first half of 2018. The industry captain chose to unravel the mystery of cryptocurrencies and their existence thus far. The reasons for every phase were confined to the ecosystem in which these non-fiat currencies were developing and the government/regulatory factors which influence its adoption and use.
Historically, the demand for a non-fiated peer-to-peer payment system was the final provocateur for the ‘revered’ Satoshi, the creator of bitcoin to develop the framework for blockchain or “decentralized ledger technology.” The success of this virtualized asset along with the geopolitical and economic events such as the Great Financial Breakdown of 2008-9 in the United States and the impact of this disaster on economies across the world eventually led to further and increased adoption of the cryptocurrencies across the world.
The reasons for the initial phase of deployment of the P2P payment system were quickly overcome by the real-time advantages it presented in the form of smart contracts, and the removal of “middleman” for transactions besides the advanced levels of transparency such transaction methodology offered it, users.
By circa 2017, crypto coins, tokens and assets became part of the new economic and transactional systems or the cryptocurrency industry – exchanges, trading platforms, investors, buyers, custodians, sellers and storage institutions service providers have all come into existence. The ecosystem now exists for these virtual assets to achieve levels of increased maturity, stability and mass adoption.
According to Joseph Lubin, the crypto ecosystem in the past decade has been prone to “bust” and “boom” fundamentals in the process of setting up and execution of the ecosystem.
Joseph Lubin believes”
“It is orders of magnitudes bigger than it was and the foundational infrastructure is getting built out.”
Busted prices and Booming Fundamentals
Currently, the “bust” is in the prices, while it is the “fundamentals” which are booming. The co-founder expressed hope that the ecosystem will continue to stabilize and eventually emerge as a self-sustaining platform. In this evolved state, the speculation which is currently seen as the biggest issue impeding the cryptoassets growth will have withered away, and true value will be delivered to the investors.
The bottom line for secure, stable and mature crypto industry finally rests with the regulatory systems in place in every federation, the expert concluded.