The days of explosive growth in the blockchain industry have likely come and gone now the average person is aware of its existence, according to Vitalik Buterin, co-founder of Ethereum.
“The blockchain space is getting to the point where there’s a ceiling in sight,” Buterin said in a Sept. 8 interview with Bloomberg at the Ethereum Industry Summit 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.”
Growth in Bitcoin and other cryptocurrencies in the blockchain community through its first six or seven years was dependent on marketing and trying to get wider adoption, Buterin said.
“That strategy is getting close to hitting a dead end,” he said. The next step will be getting people who are already interested in cryptocurrencies to be involved in a more in-depth way, Buterin said. “Go from just people being interested to real applications of real economic activity,” he said.
Jehan Chu, managing partner at blockchain investment and advisory company Kenetic Capital, said there may be opportunity for further growth in 2019 as cryptocurrency tokens continue to advance.
Last week, Ether and Bitcoin tumbled after a report said Goldman Sachs Group Inc. is suspending plans for a crypto trading desk. Goldman CFO Martin Chavez said the report was “fake news,” saying the bank never had a timeline for its project.