Ethereum's Vitalik Buterin says cryptos likely won't replace fiat money

Jun. 16, 2022 1:08 PM ETEthereum USD (ETH-USD), BTC-USDBy: Max Gottlich, SA News Editor26 Comments

Ethereum Blockchain And Cryptocurrency Devotees Gather In Denver For ETHDenver Conference

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Ethereum (ETH-USD) Co-Founder Vitalik Buterin believes that cryptocurrencies probably won't "take over the world" in terms of replacing traditional fiat currencies, he said Thursday at a VivaTech conference in Paris, as reported by Reuters.

“I do not expect cryptocurrencies to take over the world,” Buterin said, as quoted by Reuters. “It’s about cryptos and digital and governments.”

His remarks come as a slew of countries around the globe trying to dull inflation by tightening monetary policy. Inflation is one of the nastiest kinds of taxes on the consumer because their purchasing power gets reduced in dollar-denominated terms.

As for ether (ETH-USD), the blockchain where most non-fungible tokens (NFTs) are bought and sold, it's coming close to making its transition to a Proof-of-Stake consensus mechanism from Proof-of-Work in a move that has been a long time in the making and could improve transaction costs and its ability to scale.

While consumer price inflation has been perking up over the past two years to reach a 40-year high, bitcoin (BTC-USD), for example, is off nearly 45% Y/Y and around -65% from its record peak in November 2021. By contrast, the trade-weighted U.S. dollar has strengthened by almost 14% (against a basket of major fiat currencies) over the past year. That implies bitcoin is not acting as a good hedge against inflation, while the U.S. is keeping its title as the world reserve currency.

Previously, (April 11) ethereum accelerated move to Proof-of-Stake after shadow fork launch.

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