He pointed out that the current financial crisis is very different from the 2008 Global Financial Crisis that brought about the first and largest cryptocurrency by market capitalization, Bitcoin (BTC).
He made this known in a thread of tweets on 2nd June 2020. In his statement, he stated that some of the most dearly held narratives of Bitcoin (BTC) has not been borne out.
According to the Ethereum (ETH) co-founder, 2020 is not a repeat of the 2008/2009 financial crisis, but a virus crisis, a crisis of epistemology and one of overbearing policy.
Vitalik Buterin further challenged the notion that Bitcoin (BTC) narrative around inflation is connected to the current situation:
“Yes, the money printer did go brrrrr. But that’s a relatively small portion of what is going on, and even there inflation is still going *down* not up.”
Buterin also argued the narrative that says Bitcoin and other digital currencies are not correlated to other traditional assets. In order to prove his point, he captioned a chart of the downtrend of S&P 500 in March 2020 and that of Bitcoin (BTC) and other cryptocurrencies.
Vitalik Buterin Tells CZ Binance and the Crypto Community to Get With the Times
The co-founder of Ethereum (ETH) further stated that the cryptocurrency community has to move beyond the opinion made known by Binance CEO, Changpeng Zhao (CZ), quoting one of his recent tweets: “Bitcoin is the peaceful protest”.
He wrote, “I will come out and say this directly: this mentality below is *exactly* what we should be expanding beyond right now. REFORMING MONEY IS NOT SUFFICIENT.”
I will come out and say this directly: this mentality below is *exactly* what we should be expanding beyond right now. REFORMING MONEY IS NOT SUFFICIENT.https://t.co/2MakOIFSdB
— vitalik.eth (@VitalikButerin) June 2, 2020
Speaking about crypto reforming finance, Buterin stated that there were many categories of applications on Ethereum and other blockchains that go beyond finance.
He said, “Decentralized censorship-resistant publishing and communication, decentralized communities / governance / DAOs, DAOs for content curation, etc etc. All important work.
“2016-20 is a period of ideological realignment. Many old ideologies and coalitions are dying, and many new one’s being born. The hills and valleys on the battlefields are shifting. The crypto space needs to be watching carefully and adjust to new realities.”