Should We Have More Crashes Like Terra Luna’s?

One of the things that many people think of when it comes to cryptocurrencies is that crashes indicate that something wrong is happening and that such failures should never be considered a good thing. Vitalik Buterin has a completely different take on this issue and many in the crypto community support it and believe that it is true to at least some degree.

During his interview with Bloomberg, the co-founder of the Ethereum network said that he believes that events like the collapse of Terra Luna are good in the long run because they reveal fundamental issues with them. He mentioned that unsustainable businesses are often the ones succeeding when everything is gaining value since you can easily hide underlying issues and apparent inconsistencies in the financial model behind deafening hype and smart marketing.

The fact that many people have disposable money to throw at things that don’t make sense to those who are tighter with their investments says that we have an issue like many other financial domains. We had the dotcom bubble at the beginning of the 2000s. People thought that the crash of some stocks of high-tech companies was a signal that the whole industry will collapse and never recover. However, just a couple of years after we had outstanding success stories like Google and Facebook.

The landscape of the crypto industry looks just like that. Many projects without any use cases (meme coins, for example) and apparent Ponzi schemes are out there and scam people as hard as possible. However, there are interesting projects that do have incredible value and utility. Ethereum is one such example — a powerful network that brings immense utility and vast opportunities to web3 developers.

We just have to separate bad actors from companies that deserve your attention and investments. It is why we also believe in the same thing that Buterin does. We must have spectacular failures and tragedies to reveal projects that do not have any legs to stand on. We must cleanse the whole industry and let only the fittest survive the storm!

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