Bitcoin’s “price” has reached a new high, but what about its “value”? As we contemplate the price surge to $69,000, it begs the question: what new “value” has been created this time?
In the world of Web3, a crucial point of discussion is the balance between centralization and decentralization. With stablecoins, ETF holders, and centralized exchanges dominating the value transfer in the cryptocurrency market, we must question whether this direction truly represents a better future that we strive for.
The approval of the Bitcoin spot ETF has undoubtedly fueled this bull market. However, when ETF holders and centralized exchanges control the majority of transactions and value circulation (with ETF issuers holding 200,000 bitcoins, approximately one-fifth of Satoshi Nakamoto’s holdings), the decentralized spirit of the cryptocurrency market becomes further diluted.
The decisions and attitudes of these institutions not only influence the price of cryptocurrencies but also determine which projects gain exposure and recognition. Regulation has led to a concentration of power, making the cryptocurrency ecosystem increasingly reliant on the will and policies of a few large institutions.
A clearer regulatory framework for stablecoins may bring about more applications in payment scenarios, but it also means that a few companies hold the power to decide the fate of cryptocurrencies.
If stablecoins are forced to implement KYC/AML (Know Your Customer/Anti-Money Laundering) during a fork, the liquidity and support of the entire decentralized finance (DeFi) ecosystem may suddenly disappear.
When ETF holders and centralized exchanges control the majority of transactions and value circulation, does the spirit of decentralization become 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 have no direct connection to users.
The future challenges faced by the entire Web3 ecosystem cannot be ignored. With the implementation of stricter KYC and AML regulations, as well as the introduction of central bank digital currencies (CBDCs), the wealth autonomy initially promised by Satoshi Nakamoto’s vision of cryptocurrencies may no longer exist, and it may become more similar to the existing traditional financial system.
This change not only restricts the innovation and freedom of cryptocurrencies but may also exclude certain groups, especially those living in geographically disadvantaged or government-unfriendly countries.
Returning to the original intention of the Web3 world, when people only see Bitcoin as another trading symbol on a securities exchange and focus solely on its numerical price, while ignoring the technology and value behind it, the so-called Web3 market will not only lose its uniqueness but may also regress into a similar existence as the Web2 dark web, forever confined to niche applications and marginalized by regulations.
The popularization of such perspectives gradually contradicts the initial goal of blockchain: a more decentralized and autonomous means of value exchange.
When a large 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 really need to ask ourselves: what kind of future are we promoting?
People are starting to focus only on the price of Bitcoin, neglecting the technology and value behind it. We should return to our original intention.
This phenomenon is not just about market prices; it is about how cryptocurrencies and the Web3 ecosystem are understood and applied.
If we lose the driving forces behind all of this – innovation, decentralization, and user empowerment – what remains will be 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 method 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?
Opinion articles present diverse views and do not represent the stance of “WEB3+”.
Proofreading Editor: Gao Jingyuan