Ethereum core developer Péter Szilágyi sparked controversy on Aug. 5 by criticizing the cryptocurrency industry as a “damn casino” that fails to contribute meaningful value to society.
In an X post, Szilágyi compared the speculative nature of cryptocurrencies to industries like space exploration, emphasizing their impact on advancing humanity regardless of success or failure. He contended that while crypto predominantly enables the transfer of value, it falls short in terms of fostering genuine value creation.
According to him, the essence of cryptocurrency lies in significant value transfers, yet he perceives a lack of substantial value generation thus far. Additionally, the developer expressed frustration with the industry’s focus on quick profits over building useful applications:
Everyone is so focused on becoming the next V that nobody wants to build useful stuff, everyone’s in it for value extraction. I don’t really see why this system should not collapse? What would we lose in the grand scheme of things?
Szilágyi called for the crypto industry to create “something genuinely useful that people want to use, or should just close up shop.” He acknowledged Bitcoin’s attempt to be a safe haven asset but criticized other projects as “selling shovels with no gold rush in sight.”
Analyst defends Ethereum innovations
In response, crypto analyst Erik Voorhees, stood up for the industry’s progress by highlighting the significance of stablecoins, DeFi lending protocols, decentralized exchanges, privacy coins, wallet apps, and blockchain analytics platforms as notable innovations.
Szilágyi acknowledged some valid viewpoints but argued that speculation currently outweighs practicality in the realm of cryptocurrency. Expressing specific doubts about decentralized exchanges (DEXs) and high-speed blockchains, he believed these technologies fuel speculation rather than addressing tangible real-world issues.
The developer ended on a constructive note, proposing “private stables” as an area of potential innovation. “Now that I could get behind,” he wrote. “Make it computable, and you have an absolute win.”
Nevertheless, the interaction brings to light the ongoing discussions within the cryptocurrency community regarding the societal impact and long-term viability of the industry. With the maturation of the market, there is increasing pressure on blockchain initiatives to showcase practical applications beyond mere financial speculation.
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