Cryptocurrencies like Bitcoin and Ethereum have lost some of their original purpose but continue to attract interest from users.
BTC and ETH: Deviation from Original Goals
Bitcoin and Ethereum, once revolutionary projects, have strayed from their original purpose. Justin Bons, founder of Cyber Capital, argues that Bitcoin failed to scale, forcing users into centralized custody, contradicting its core principles. The lack of a sustainable security model further threatens BTC's future. Similarly, Ethereum, once seen as an alternative, has shifted towards Layer 2 scaling, which has enriched insiders while undermining decentralization.
L1 Blockchains: Corruption and Centralization
Alternative L1 blockchains have not provided a solution. Most new chains have insider allocations exceeding 50%. This concentration of power contradicts the principles of decentralization. Bons highlights that even determining if a blockchain is permissionless requires deep technical knowledge. The lack of industry consensus on definitions allows bad actors to thrive. Furthermore, the crypto industry remains a breeding ground for deceptive marketing, where many projects rely on hype rather than fundamentals.
Crypto's Future: Hope Amidst the Chaos
Despite its problems, the crypto industry still holds promise for financial sovereignty. According to Bons, decentralized technology provides censorship resistance and privacy, which remain important in a regulated digital world. The current state of the industry reflects broader societal trends. However, Bons believes that truth can break this cycle, and honest discussions can help pivot the industry towards true decentralization.
While the crypto industry faces severe challenges, the pursuit of financial inclusion and independence is still worth supporting.
