Vitalik Buterin, the co-founder of Ethereum says that high ether prices are significant both for the wider ecosystem’s development and network security. He made the aforementioned remarks during an interview for Laura Shin’s cryptocurrency-focused event- Unchained. Interestingly, the event was hosted at the Columbia Graduate School of Journalism and live-streamed on March 20.
Buterin referred to the “earlier rhetoric” of the Ethereum project, in reply to Shin’s question as to whether project leaders and protocol designers should be focusing on the question of a digital asset’s price. It is to be noted that the “earlier rhetoric” had explicitly downplayed the importance of the asset’s value. He mentioned that in part, it was counter-signaling to distinguish Ethereum from other digital asset and crypto-related projects that do pumping and lambo-ing way too much. He also added that it was also about curtailing legal risk by essentially trying to make the project seem more far-away from something that would be covered by financial regulation.
Furthermore, Buterin’s other line of reasoning revolved around the fact that the participants and creators in projects within a given digital asset ecosystem tend to have a stake in the token. For that reason, as holders, they are prospectively better-funded to develop their work if a digital asset’s value stays elevated.
Buterin did respond to the question of developers’ role, regardless of the assumed indifference on the part of the majority of attendees. He stated that they have accountability to abstain from doing unintelligent stuff that would lead to the price going to zero. For instance, the price of the digital asset may plunge because of flooding the market with a flash of newly minted coins.
Recently, Buterin argued that blockchain applications outside of finance face more difficulty gaining traction. He argued that in a recent speech at Token 2049 in Hong Kong. He noted that finance is realistically the first blockchain application that will perhaps accomplish broad-scale adoption.