Joseph Lubin, one of Ethereum’s co-founders, believes that cryptocurrency is on the verge of market growth despite the thinning price values.
In an interview with Bloomberg, Lubin suggested that the current bear state of the market is a bubble within the blockchain ecosystem and that the exponential growth that has happened over time is evidence that the cryptomarket is growing in strength.
Lubin explained that the activity in the “bubbles” is ultimately good for the market, as it brings attention to digital currencies: “We’ve seen six big bubbles, each more epic than the previous one” and that “each of these bubbles has the advantage of bringing attention to our ecosystem, it brings entrepreneurs, it brings developers, it brings money” and that the bubbles lead to a “tremendous surge of activity.”
Lubin compared the bubbles in blockchain to that of the Dotcom bubble regarding the development of the internet, saying that the Dotcom bubble was in a time when things were much slower back then, so the attention saw one rise, one collapse and then leveled out. However, blockchain technology is an innovation in a time where the pace is much more rapid and so more bubbles can be expected as people are interested in the technology but there is also a sense of fear.
He continued to explain the nature of the growth, saying:
“…we build more fundamental infrastructure, we see a correction, and the potential gets even more impressive… I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem. We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago.”
Lubin is not the only one who is remaining optimistic despite the downturned market. Several other investors and cryptocurrency figures such as Fundstrat’s Tom Lee and Coinbase’s Brian Armstrong are advocating that Bitcoin and the cryptocurrency market will turn and the result will be a major surge in valuations.