If there’s something that is holding the whole of the cryptocurrency ecosystem together in the bear market, it is the positive sentiments that the crypto-enthusiasts are maintaining and spreading. Joseph Lubin, an Ethereum (ETH) co-founder and Consensys founder spread some optimism about the digital assets, upon his appearance on CNBC’s “First On CNBC” segment.
While Lubin bullishly claims that “Digital currencies (Crypto) aren’t on the edge of a collapse,” the investors are questioning his the source of his optimism. To satiate the confusion caused by his claims, the prominent industry leader elaborated about sanguine, the future for the nascent crypto world that is currently struggling to regain some high.
Lubin pointed towards the reoccurring theme of cycles in the cryptocurrency industry. He stated that the market has observed a series of “booms and busts” during the past decade. Though the prices are in a “bust,” the fundamentals and the use cases are “booming.” The Consensys founder further claimed that the evolving ecosystem is growing ever stronger, implying that the decline doesn’t hinder the beliefs or scope of the assets.
Supporting his claims, Lubin cited the massive increase in the number of projects, people, entrepreneurs, and developers involved in the ecosystem. He stated:
It is orders of magnitudes bigger than it was and the foundational infrastructure is getting built out.
Also pointing towards the incline of Wall Street players and technology hotshots towards the market despite a depressed market cycle, is a significant indicator of a possible bull run.
What about regulation?
When the CNBC host questioned Lubin about the regulatory situation surrounding cryptocurrencies and blockchain technology, he argues that the ultimate base of blockchain tech is its decentralized quality that can evolve traditional systems such as trade, finance, tokenized custody systems, and building infrastructure to facilitate digital asset ecosystems.
He further elaborated that the regulatory uncertainty has started to fade in “various different jurisdiction” across the globe. For instance, the U.S. and its regulatory bodies are finally starting to balance blockchain technologies with the current scenarios. Not just limited to the U.S., nations like Japan, Singapore, and Malta eagerly jump and try to navigate the cryptocurrency wagon.
Raising another important question, the host questioned the Ethereum co-founder about the necessity of government intervention in the industry. In an attempt to skim through the question, Lubin cited the example of his company, Consensys, that is often referred to the Google of the blockchain world. He states that while dealing with crypto assets, the focus is not solely focussed on regulations. He inferred that the technology doesn’t need to be regulated, it is its use cases that need regulatory attention.