Ethereum co-creator and world’s youngest crypto billionaire Vitalik Buterin believes that Bitcoin needs to evolve like Ethereum in order to stay in the race. He fears that there is a big risk it may get left behind with the current technology. Buterin also said Crypto is in a bubble and it is difficult to predict when it will end.
Talking to CNN network on Thursday, Vitalik said he wasn’t shocked by the ongoing crypto crash unlike a lot of investors around the globe.
Bitcoin may get left behind with current technique
Buterin agreed with Elon Musk’s concerns of Bitcoin using a huge amount of energy. He said that even though it might not break the world but it is definitely a significant downside.
He talked about how Ethereum’s transition that is under development. The transition is going to make it more energy efficient. He believes that it is something which Bitcoin needs to do as well or else it may get left behind.
“If Bitcoin sticks with its technology exactly as it is today, there’s a big risk it will get left behind.”
Ethereum’s plans of being more energy efficient
Ethereum is making some changes to stay ahead in the race by becoming more energy efficient. With Bitcoin and Ethereum making up the two-third of all the market value of all the cryptocurrencies in the world and Ethereum overshadowing Bitcoin off late, there wouldn’t be a better opportunity for Ethereum to take the next step.
Ethereum is in the process of moving from PoW to a Proof-of-Stake through the upcoming transition to ETH 2.0. At this moment, Ethereum consumes 62.56 KWh per transaction. Additionally, it runs on Proof-of-Work (PoW) which is also the consensus method used by Bitcoin and is highly energy inefficient.
Currently, Ethereum’s annual carbon footprint is same as Sudan’s, which is a country. With the proposed developments mentioned above, that will come down by 99% according to Nimbus.
“We go from consuming the same energy as a medium-sized country to consuming the same energy as a village”, Vitalik told CNN.
Crypto is in a bubble
The crypto crash of the past few days has shocked investors around the world.
— CNN (@CNN) May 20, 2021
When asked about Elon Musk’s recent comment affecting crypto market, Buterin said that it is a relatively fresh phenomenon in the crypto space and hence, it is reasonable to expect some craziness.
He also said that the market will learn and evolve and Elon’s influence will fade away with time.
“But I do think that the markets will learn. Elon is not going to have this influence forever. “
He said crypto is in a bubble but it will be difficult predicting when will it end. The bubble could have ended by now already or it could end months from now.
“Often enough, the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet.”