Bitcoin And Blockchain Mania Is Waning, Says Ethereum Co-Founder Vitalik Buterin

Samantha Chang

Ethereum co-founder Vitalik Buterin believes the days of explosive growth in the blockchain industry are waning, now that the average person has some awareness of cryptocurrencies, especially bitcoin.

"The blockchain space is getting to the point where there's a ceiling in sight," Buterin told Bloomberg at an Ethereum and blockchain conference in Hong Kong.

"If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn't an opportunity for yet another 1,000-times growth in anything in the space anymore."

"[We have to] go from just people being 'interested' to real applications of real economic activity," Buterin said.

Blockchain technology is already being used in some industries, notably for supply-chain management.

Samsung Electronics — the world's largest manufacturer of semiconductors and smartphones — is considering using a blockchain ledger system to track its global shipments in a move that could reduce its shipping costs by 20 percent, as the Inquisitr previously reported.

"There are entire verticals — such as healthcare or identity management — that could benefit from blockchain or distributed ledger technology," said Bart Stephens, co-founder and managing partner of Blockchain Capital.

"We wanted to partner with this team that has been making investments and actually helping to architect a number of different crypto economies and crypto token-based projects," Venrock partner David Pakman told Fortune.

Pakman underscored that Venrock isn't interested in making short-term profits, but in investing long-term in the future of blockchain.

Despite a barrage of negative news recently, the cryptocurrency industry is definitely expanding. So while explosive growth may no longer be on the horizon, the ecosystem is quietly chugging away and moving forward.