- Vitalik Buterin stated the current financial crisis is very different from the 2008 Financial Crisis.
- Moreover, Buterin added that the financial crisis of 2020 is not a repeat of the financial crisis faced in 2008/09.
- The Ethereum co-founder explained another narrative describing that Bitcoin and cryptocurrencies not related to traditional assets.
In a recent series of tweets, the co-founder of Ethereum, Vitalik Buterin stated the current financial crisis is very different from the 2008 Global Financial Crisis from where Bitcoin originated. Accordingly, the crypto community has to adjust its thinking.
Bitcoin itself is Primarily a Financial Tool
Buterin tweeted on June 2 thread that some of Bitcoin’s most precious events were not born around this time.
On 2008 vs 2020, and what it means for crypto(currency).
I've said this already at some of the recent newfangled e-conferences, but want to reshare here too.
— vitalik.eth (@VitalikButerin) June 2, 2020
Moreover, Buterin added that the financial crisis of 2020 is not a repeat of the financial crisis faced in 2008/09. It is a virus crisis, it’s a crisis of overbearing policing in many places, and also, it is a crisis of epistemology.
Further, he stated that the Bitcoin narrative around inflation was one of the important sides of the present scenario. Buterin says the cryptocurrencies are now closely related to broad economic trends. Which means that the narratives need to adjust.
The Ethereum co-founder explained another narrative describing that Bitcoin and cryptocurrencies not related to traditional assets. For summarizing more briefly, he posted an S&P 500 chart that indicates a downturn in March.
2016-20 is a Period of Ideological Realignment
However, at the same time, the value of Bitcoin along with other virtual currencies tumbled over 50%.
Besides this, the Binance Chief Executive Officer Changpeng Zhao shared on Twitter that “Bitcoin is the peaceful protest”. Responding to the tweet, Buterin described that it was the peak period when the community moved afar the mindset.
Furthermore, Buterin explained that there are many categories on Ethereum applications and other blockchains that go beyond finance. Such as decentralized communities, governance, DAOs, DAOs for content curation, and many more.
The Co-founder repeated that the old ideas discarded and the community should adopt this new reality.