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Vitalik Buterin-Tom Lee on Ethereum Treasuries: Growth, Risks, and What’s Ahead
The rise of Ethereum treasury companies has garnered attention from prominent figures in the crypto sphere. In a recent conversation with Vitalik Buterin, co-founder of Ethereum, and Tom Lee, founder of Fundstrat and chairman of Bitmine Immersion Technologies, the two discussed the growth, risks, and future prospects of this developing market.
Ethereum treasuries now hold nearly 3.7 million ETH worth over $16 billion, with Bitmine Immersion leading the list. While Buterin welcomes this growth, he stresses the importance of responsible use and strong privacy measures to ensure the ecosystem’s stability.
Buterin acknowledges that having multiple ways to hold Ethereum makes it a stronger asset class, but warns about the dangers of excessive leverage, which could lead to cascading liquidations and market instability. He emphasizes the need for responsible players in this space to make these products fundamentally stable and potentially long-lasting.
Lee, on the other hand, is optimistic about the potential of Ethereum treasury companies, citing staking and infrastructure advantages as key drivers for growth. According to Lee, Ethereum’s unique selling proposition lies in its ability to earn staking yield, higher volatility compared to Bitcoin, and its role in financial infrastructure.
Regarding Ethereum’s incredible growth trajectory, Buterin reminisces about its humble beginnings as a college project that surpassed his initial expectations. He highlights several milestones that surprised him along the way, including the 2016 DAO hack and hard fork, the rapid rise of DeFi and NFTs, and the impressive progress in zero-knowledge proofs (ZKPs).
Looking ahead, Buterin is focused on achieving privacy as a standard feature for Ethereum wallets, ensuring users can keep their balances and transactions private. He believes that tools like Privacy Pools can protect privacy while curbing illegal activities more effectively than traditional finance.
In his view, the transition to Proof of Stake took longer than expected, but he remains encouraged by advancements in ZK technology, which could unlock entirely new opportunities for Ethereum.
It is worth noting that both Buterin and Lee have differing views on their counterpart, Bitcoin. While the co-founder sees respect between developers but acknowledges differences in ideas, likening Ethereum to a teenager growing up while Bitcoin is still “learning to drive,” he emphasizes the growth of treasury adoption as a positive sign for the ecosystem.
It is clear that both experts believe that the future prospects of Ethereum treasuries are filled with potential.
Source: coinpedia.org
