21.05.202117:40 Forex Analysis & Reviews: Vitalik Buterin: Ethereum can surpass Bitcoin

Bitcoin is struggling to recover from its $26,000 crash. The first step has been taken, and it is quite successful. Quotes rose to $42,000, but it is still not possible to continue the growth. Experts believe that such a sharp and strong upward pullback was triggered by the buying of "whales". According to many analytical agencies, it was the institutions and large investors who bought the coins when the price fell below $40,000, considering this price very attractive. However, it is far from a fact that this will save the bitcoin from a final drop of 80%-90%, as it was several times before. The fact is that during the previous falls, there were also a sufficient number of strong "bullish" candles. That is, market participants then, in 2013 and 2017, tried to save bitcoin and its upward trend. However, they ultimately failed to do so. The same may also happen at present. Bitcoin remains too vulnerable to Elon Musk's tweets and statements, which is not good for the entire network. There is also a very negative fundamental background for the world's first cryptocurrency.

Meanwhile, the co-founder of the Ethereum cryptocurrency gave an interview to CNN, in which he expressed the opinion that over time, the ether can overtake bitcoin in popularity. In his opinion, bitcoin and ethereum can change places. Buterin sees the disadvantage of bitcoin as low energy efficiency, while ether switches to the Proof-of-Stake (PoS) algorithm, which is more economical in terms of energy consumption. "Bitcoin's electricity consumption is huge. This is not a thing that can destroy the world, but its significant negative impact is obvious," Buterin said. He called the current situation in the cryptocurrency market a "bubble" and noted that "bubbles" have happened before and always burst. Buterin also noted the high influence of Elon Musk's Twitter on the cryptocurrency market, but said that this will not always be the case. "Elon will not influence the markets forever," he said.

Tesla CEO Elon Musk reiterated that the electricity consumption during bitcoin mining is comparable to the costs of average countries. He suggested that the largest mining companies publish reports that will show how much renewable energy was used in the production of bitcoin.

At the same time, in the United States, Joe Biden announced the need to strengthen tax control. The US President proposes to oblige cryptocurrency exchanges to transmit information about all transactions over $10,000 to the Internal Revenue Service. According to the US authorities, cryptocurrencies pose a serious threat to the existing financial system, as they are used to finance illegal activities, launder money and evade taxes. "The new rules will minimize the possibility of hiding income," Biden said.