Vitalik Buterin, the computer genius behind the Ethereum (ETH) blockchain, has highlighted the significance of high ether prices for network security and developing a wider ecosystem.
Buterin made his speech in an interview on Laura Shin’s latest crypto podcast “Unchained” at the Columbia Graduate School of Journalism (Mar 20). He said, Ethereum’s “earlier rhetoric” did not quite accent the essence of ETH’s value in regards to what the protocol designers and project leaders’ main focus should be, despite their attempts at mitigating legal risks for investors by distancing the project itself from financial regulations, which may have pushed the crypto price manipulation rate one bit too far.
He went on affirming that since lawmakers have now familiarized themselves with the cryptocurrency and blockchain industry, “even if people try to claim the price doesn’t matter at all, [regulators] are totally going to see through that.”
From Buterin’s perspective, high asset value should be maintained to avoid bordering zero, which results in an unsecured network. Having the tendency to hold a stake in tokens, creators and customers of specific crypto projects would prefer it if they can finance their work in a stable manner while the price remains high.
In another remark, the audience was engaged in the question, “Are Ethereum developers focused enough on the price of Ethereum?”. Reportedly 38 percent of the audience “don’t care”, 23 percent unaware of the matter, while 21 percent presented a solid “Yes” and 19 percent said “No.”
Undeterred by the alleged lack of interest, in response to the question of developers’ role in the issue of pricing assets, Buterin asserted that they are to take precaution and stay away from “stupid things that would lead to the price going to zero,” like bombarding the market with freshly minted coins.