In 2021, the great bull market, the leverage effect is beautiful, but also buried hidden dangers, fraud, fraud, hacking and a variety of macro factors, the currency market began to enter the bear market. Investor pessimism, with even some big names predicting a prolonged bear market, has shaken many people’s faith.
CoinMamba, a crypto investor, said, “I’ve been working in cryptocurrency for nine years and I’m exhausted and want to do something different, tired of all the scammers and fraudsters.” Vitalik Buterin, co-founder of Ethereum, has advice for weary cryptocurrency investors: Drop the focus on price and focus on technology instead. “I recommend keeping your distance from the investment community and getting close to the technology and application ecosystem,” he says.
The risks of cryptocurrencies are incalculable, as evidenced by a series of recent developments and scandals that have rocked the global cryptocurrency industry. This could set the crypto industry back “a few years” and could see “more difficult” regulatory scrutiny of the industry, though it may also be the “best time” to learn about the technology.
Buterin points out that the problem is human, not technological, and that the potential stability of distributed ledgers and the technology that powers the crypto asset economy are not in question. Ethereum has provided a lot of focus for investors this year as the network has moved from proof-of-work to proof-of-equity (PoS) consensus. Buterin then added a new category of milestones to the Ethereum technology roadmap, aimed at increasing censorship resistance and decentralization of the Ethereum network.
A common question raised whenever a major centralized exchange blows up is whether we can use encryption to fix the problem. Rather than relying solely on “statutory methods” such as government licences, auditors, corporate governance and background checks, exchanges could use technology to create “cryptographic evidence” that the money held on the chain is sufficient to cover their responsibilities to users.
Buterin also weighed in on the regulation of cryptocurrencies, saying, “We should not pursue large institutional capital at full speed with enthusiasm. Regulation that allows the crypto space to act freely internally but makes it harder for crypto projects to enter the mainstream is much better than regulation that interferes with how crypto works internally.”
In fact, the coin circle is characterized by its large variance and there are two extremes. If the industry gains a certain achievement or reputation, then it is very likely to attract people like Do kwon who do not abide by the rules of the industry. It is therefore necessary to introduce regulatory measures to prevent those who seek to exploit blockchain technology and gain personal gains at the expense of investors.
conclusion
As Churchill once said, “Never let a crisis go to waste.” After the feverish enthusiasm of the speculators has passed, it is necessary to take a calm breath and re-examine the impact of this crisis to determine the future direction of the industry.
