What if the crypto goes centralized

xuanling11
Coinmonks
Published in
2 min readOct 13, 2022

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Photo by Lysander Yuen on Unsplash

There will more and more banks hold crypto in the coming years. Even the crypto exchange will provide crypto banking services, and it will turn crypto more like a centralized system than the decentralized one we hope to be.

How will this change the crypto landscape?

Freedom vs. Equality

There is a deep understanding of the differences between our freedom and the equality we want to achieve.

Freedom gives one power of whatever they would prefer to do, while equality forces everyone to become equal.

Such a different approach to the ideology has been seperated Bitcoin and Ethereum into the future.

Bitcoin focuses on the freedom of money without a centralized party to monitor the system to prevent inflating the cash through their power and jeopardizing the economy’s future.

Ethereum focuses on the equality that every participant joins and contributes their power to a consensus as long as they have crypto on hand. Everyone has an equal opportunity to use the system as long as they are part of the community.

What is crypto all about

If people root for Bitcoin, they likely root for the freedom of money. However, they have complete control over it. If people roots for Ethereum, it is expected they root for equality so that everyone has equal opportunity to join the crypto and contribute whatever they can.

There is no right or wrong approach but a way you want to join and to believe.

Institutional investments

There are groups of people full of money to buy into crypto solely to gain a financial advantage. There is nothing wrong with it. However, they offer financial products that further leverage such assets and accumulate them whenever possible. Then they turn crypto into magic investments that get you rich quickly. Such mentality makes crypto becomes centralized as people will purchase the product of crypto but not crypto itself. They may not truely believe what crypto offers but driven by the monetary incentive.

Of course, that is also okay. But understanding that crypto can impact the future is a step further to help everyone avoid the idea of a control system with no space for freedom or equality to survive.

In conclusion

I hope crypto will not become centralized, or it will become worthless in value, both monetary and ideologically.

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