Blockchain firm ConsenSys, CEO Joseph Lubin in his latest interview to Bloomberg has stated that much of the price rise witnessed by cryptocurrencies is correlated to the development of “fundamental infrastructure” in the virtual currencies industry.
Lubin, who is also the co-founder of ethereum believes that evolution of the cryptocurrency market, stabilization of blockchain technology and the issues related to scalability apart from development of the technology are all correlated and driving much of the price rise of these cryptocurrencies.
Prices co-related to infrastructure
Explaning the rise and fall in prices, Lubin, left behind the developer in him to explain the economics behind the virtual currency prices. In his view, ever since 2009 when the Bitcoin was invented, prices have been rising and falling in ‘structures’ he called as bubbles.
He says that thus far there have been 6 such patterns of bubbles which can be termed as big size bubbles. With every bubble there has been an exponential growth in the fundamental infrastructure of cryptocurrencies he opines.
It has brought in entrepreneurs as well as developers together into the ecosystem, nurturing growth to evolve and develop virtual currencies. It has also brought in money through the stages as more investors curious about cryptocurrency prefer to invest in these non-fiat currencies in the early stages.
In the process the core fundamental infrastructure required for creating more value came into existence, reiterates Lubin. He also states that there is a strong correlation in terms of the price rise and and fundamental infrastructure ecosystem. Besides, the developer community has also grown in magnitude in the past 10 months resulting in evolution of the virtual currency as a financial system.
Scalability with new technologies
Scalability feature in virtual currency is also a major issue believes Lubin. He adds that developers have been working hard to improve scalability by optimising available technologies. He identified that in terms of transactions the numbers have increased substantially over time.
Currently, the number of transactions has reached nearly 20 transactions per second as the new blockchain approach for building “decentralized world wide web platform” begins “but that’s an infrastructure that automates trust and guarantees execution and that’s a much better foundation on which to build the next surging scalability.”
As the founder of ethereum ecosystem Lubin pointed out that Ripple is a payment system and cannot be limited to that of a technology or a protocol. He does not believe that Ripple can participate in the same segment as the blockchain space.
Additional he believes EOS by adopting the decentralized approach in building a blockchain ecosystem is differently placed for use in the future, as it holds good for many of the economic activities based on a layer of decentralized trust.
EOS would be the ideal product for “liquid deep market Crypto asset commodities equities bonds and cryptocurrencies,” predicts Lubin. However, he predicts that EOS is prone to multiple risks and dangerous despite the two layer technology predictions.