Last few weeks have been awesome for all major cryptocurrencies. Almost every coin in the top 10 has observed major rallies, and Ethereum is also one of them. Its price has gone all the way from $119 to $136, and at one point it also created a high of $164. Now at this point Ethereum co-founder Vitalik Buterin has made some comments about the price of Ethereum. He has said that high price is good for security and development of Ethereum ecosystem.
That’s right. Speaking at Laura Shin’s Unchained conference when he was asked whether product designers and project managers should be concerned about the price of Ethereum or not, he stuck to the initial rhetoric of his project that downplays the importance of underlying asset’s value. He said:
“In part, it was counter-signaling to distinguish ourselves [Ethereum] from other crypto projects that do pumping and lambo-ing way too much. But it was also about minimizing legal risk by basically trying to make the project seem more distant from something that would be covered by financial regulation.”
However, continuing his remarks in today’s context he soon added that a higher price is good for the security and development of ETH ecosystem. He said:
“I can tell you what things are clearly important about why the price being higher rather than lower is good. One of them is obviously security. If the price is zero, then the network can’t be secure. That’s true in proof-of-work and proof-of-stake.”
His second argument is based on the fact that creators and participants of a project within a particular crypto ecosystem tend to have a stake in the token, and when the value of that stake increases it encourages them to further develop the project as the financial position remains strong to fund the project.
Following the remarks of Buterin audience at Unchained was asked to give live answers to certain questions. They were asked “Are Ethereum developers focused enough on the price of Ethereum?”. And their responses were as follows:
- 38% said they don’t care
- 23% said they don’t know
- 21% said “Yes”
- And 19% said “No”.
Buterin, however, in his classic style didn’t seem to care about this apathy shown by the respondents. When he was asked about the role of developers in Ethereum ecosystem, he said that they have a responsibility to refrain from doing “stupid things that would lead to the price going to zero.”