Bitcoin has reached a new all-time high of $69,000, prompting me to question the new “value” it has created. In the Web3 world, there is an ongoing discussion about the balance between centralization and decentralization. As stablecoins, ETF holders, and centralized exchanges dominate the value transfer in the cryptocurrency market, we must question whether this development truly represents a better future.
The approval of Bitcoin spot ETFs has undoubtedly fueled this bull market. However, when ETF holders and centralized exchanges control the majority of trades and value flow (with ETF issuers holding 200,000 bitcoins, approximately one-fifth of Satoshi Nakamoto’s holdings), the decentralized spirit of the cryptocurrency market is further diluted.
The decisions and attitudes of these institutions not only affect cryptocurrency prices but also determine which projects gain exposure and recognition. Regulatory measures have concentrated this power, making the cryptocurrency ecosystem increasingly reliant on the will and policies of a few large institutions.
The clearer regulation framework for stablecoins may bring more payment scenarios, but it also means that a few companies hold the power to determine the fate of cryptocurrencies.
If stablecoins were forced to implement KYC/AML protocols during a fork, the liquidity and support of the entire decentralized finance (DeFi) ecosystem could suddenly disappear.
When ETF holders and centralized exchanges control the majority of trades and value flow, does the decentralized spirit get diluted? This not only limits the freedom and flexibility of the cryptocurrency ecosystem but also places important decision-making power in the hands of centralized entities that are not directly associated with users.
We cannot ignore the future challenges faced by the entire Web3 ecosystem. With the implementation of stricter KYC and AML regulations, as well as the introduction of central bank digital currencies (CBDCs), the wealth autonomy initially envisioned by Satoshi Nakamoto may cease to exist, resembling the traditional financial system more and more.
Such changes not only restrict cryptocurrency innovation and freedom but may also exclude certain groups, especially those living in geographically disadvantaged or government-unfriendly countries.
Returning to the original intent of the Web3 world, when people only see Bitcoin as another symbol traded on a securities exchange and overlook the technology and value behind it, the unique market of Web3 may not only lose its distinctiveness but also degrade into a dark corner of non-mainstream applications, subject to regulatory exclusion.
The popularization of such views gradually deviates from the initial goal of blockchain: a more decentralized and autonomous means of value exchange.
When a significant amount of control falls into the hands of a few and the cryptocurrency market is increasingly seen as a speculative tool rather than a carrier of technological innovation, we must ask ourselves: what kind of future are we really striving for?
We should focus on the technology and value behind Bitcoin rather than just its price, and we should return to our original intention. This phenomenon is not just about market prices but also about how cryptocurrencies and the Web3 ecosystem are understood and applied.
If we lose the core driving forces behind all this – innovation, decentralization, and user empowerment – what remains is an empty shell, a market without a soul.
Ultimately, we must deeply reflect on our intentions and goals. The essence of the cryptocurrency revolution is to challenge the status quo and explore a currency and value transfer system that does not rely on traditional financial institutions. However, as we become increasingly dependent on these existing institutions and centralized decision-making mechanisms, we must ask ourselves: are we truly moving towards a better future?
The views expressed in this article represent diverse opinions and do not reflect the stance of “WEB3+.”
Proofread by Gao Jingyuan.
