good cryptos must have endured bear markets

At the moment, the Web Summit, an annual technology conference in Lisbon, in full swing. Cryptocurrencies are an important topic during this big technology event and many big names from the crypto world are present. One of these names is Charles Hoskinson, the founder of Cardano (ADA) and co-founder of Ethereum (ETH). According to Hoskinson, crypto projects that have survived both bull and bear markets are “resilient under a hostile load.” According to him, investors should value projects that have passed the so-called ‘test of time’.

Charles Hoskinson

The CEO of Input Output Hong Kong (IOHK), the company behind Cardano, has seen several projects go under. He mentions Silk Road, Mt. Gox and Terra as some examples. According to him, the projects that can withstand severe weather and survive in conditions as we know them today are the good projects that will ultimately survive.

Just because you’re on top today doesn’t mean you always will be. Good cryptocurrencies have to go through several collapses. I was in bitcoin (BTC) when it was below 1 dollar and I saw the price go to $30, to $40, to $256, to $80, to $1,200, to $250, to $20,000, to $64,000, and now to about $20,000. I’ve seen that and I’ve seen companies come and go.”

In that regard, you can see the current bear market, in which most cryptocurrencies have fallen by more than 70%, as something positive. It is a test that crypto projects have to pass in order to prove successful in the long term.

Criticism of Ethereum and Bitcoin

The CEO of IOHK is not afraid to speak his mind about other major cryptocurrencies. For example, he once again criticized both ethereum and bitcoin a while ago. The big problem with ethereum, according to Hoskinson, is locking mechanism, preventing many investors from taking their ether off the Beacon Chain until the next major upgrade. This, he says, will result in a liquidity crisis.

The big problem with bitcoin is the polluting Proof-of-Work mining. His own Cardano, like Ethereum since the merge, runs on Proof-of-Stake. However, he acknowledges that Proof-of-Work is important in the new BTC creation process, but he does not believe that it is very effective.