Ethereum’s Vitalik Buterin Recognizes Higher ETH Prices are Vital for Network Security in Long Run
Ethereum is currently sitting at the second spot in terms of market valuation behind Bitcoin. The prices of Ethereum has been fluctuating at the resistance mark of $140, which if broken can see the price of ETH go further up. At the time of writing, ETH prices were at $137.23 seeing a 0.23% decline on the 24-hour price chart.
Recently, Vitalik Buterin the founder of the Ethereum network has said that he does not really look at the prices or consider the prices of a token as a parameter of its success. However, he also mentioned that high prices of Ethereum would ensure better security and development on the platform.
Ethereum has been the pioneers of platforms in the crypto space, right from making blockchain smart contracts mainstream, to making decentralized applications (Dapp) a trend. Now Ethereum is looking to expand its platforms to new highs. The first major change which is expected to take place soon will be the change of mining consensus, from Proof-of-work to Proof-of-stake.
Although the increased price of Ether token would have no impact on the development of the network, apart from the fact that an increased price can garner a much wider user base and interest. However, the founder believes that the high prices would ensure higher security on the network.
However, it's a double-edged sword where the development on the network would surely impact its prices, but in the long run, the high prices of the Ethereum would ensure that the ecosystem sees more development and expansion.
Buterin And His Views On The Price Market Of Cryptocurrency
Vitalik Buterin during a recent interview with Laura Shin’s crypto-focused “Unchained” answered a number of questions and p[resented his viewpoints on different aspects of the decentralized world. When Buterin was asked about his views on whether the developers, protocol designers, and project leaders should have the cryptocurrency pricing in their mind.
Buterin said that at the beginning of the Ethereum network the crusaders of the project were least concerned over the asset value. He explained,
“In part, it was counter-signaling to distinguish ourselves from other crypto projects that do pumping and Lambo-ing way too much. But it was also about minimizing legal risk by basically trying to make the project seem more distant from something that would be covered by financial regulation.”
He went on to clarify that looking at the current scenario, price does play a very significant role. Here is what he said in the price context,
“I can tell you what things are clearly important about why the price is higher rather than lower is good. One of them is obviously security. If the price is zero, then the network can’t be secure. That’s true in proof-of-work and proof-of-stake”
Ethereum Long Term Price Prediction
Buterin went on to say that the long-term pricing does matter and it would play a very important role in the long term growth. The project itself is working on improving its own worth and value as a blockchain project, and in that, the price of Ether should also naturally rise.
The importance of long-term pricing increases because cryptocurrency space has finally come out of its early days of high volatility and low confidence of the community. As the market becomes more stabilize the prices of the tokens would truly reflect the value of the project.
Ethereum was the first cryptocurrency platform to focus on a complete blockchain based eco-system rather than just the tokenization aspect. Bitcoin is often credited for bringing the decentralization to the masses, however, Ethereum was the real crusader of decentralization as it ensured that people are not just limited to tokens, and are able to understand how blockchain can impact their lives in more ways than just a digital token.
What the founder Buterin said is quite thought-provoking as the pricing was never the primary goal, be it for Bitcoin or Ethereum. However the 2017 price peak not only brought hundreds of new crypto tokens to crypto market, but it also jeopardizes the aim of a decentralized economy as the main focus was on creating tokens rather than making it useful in our daily lives.
This is quite evident from the fact that only Ethereum and Bitcoin are recognized as an independent entity rather than security. Now that the trust of people towards the crypto space is at an all-time high and many governments around the globe have ensured user-friendly crypto regulations, the long-term pricing would definitely be a key factor for the further development of any network in the crypto space.