Crypto is better as a niche.

The rapid decline and massive fall of FTX has undoubtedly been the greatest crisis in cryptocurrency so far. When the collapse of Sam Bankman Fried’s piggy bank occurred, it was the world’s third largest crypto exchange. The collapse of the exchange sent shockwaves through the industry. Not only did it bring down prices, but also a number of companies.

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The blatant fraud committed by what were, at the time, some of the most trusted and consumer-savvy crypto companies, confirmed the widely held belief that this is just a ruse to cover up fraud.

For veteran crypto investors and observers, this is and always has been normal: ever since the bitcoin a data-position=”autolink” href=”” title=”Bitcoin Price BTC Price Index and Live Chart – CoinDesk”>(BTC) market crash of 2014, following the failure of Mt. The cyclical nature in the crypto market is well-known.

Isn’t that odd? This maturing industry seems to have normalized boom-and bust cycles. I think that the price of the token or the industry as a whole is what determines whether or not mass adoption will occur for blockchain or consumer applications.

You Want Crypto Regulations? Opinion

That’s it. The growth of crypto is, to a large degree, the main problem. The pursuit of mass crypto adoption is the reason for this alternating euphoria and despair every four years.

Crass adoption

The promise of reinventing money, the internet and even the Internet itself is what sparks interest. The promise of quick money or the dream of decentralization is what makes people buy in. Prices rise due to popularity, and reflexively they continue to rise as more people invest.

Blockchains are almost always built to replace or mitigate the failures of the systems they were designed to improve. These things were almost always built to make crypto appealing and/or simple-to-use. Many people believe that “the mass” will not self-custody. What’s the point of Bitcoin if you can’t self-custody?

The risk of increasing adoption is that newcomers aren’t familiar with Bitcoin’s core values: decentralization and self-custody. Hard money, for example, may not be known to them. Alex Thorn is the head of Galaxy Digital’s firmwide research. He said that if new entrants do not learn, understand and embrace these core beliefs, they may not be able to maintain the features in the protocols.


Adoption is about following the law, which can often be at odds with the crypto values. It also means creating sign-ins that are easy to use and on-ramps that are not compromised. Decentralization and mass-adoption are in tension, if not competition. You can destroy the usefulness of crypto if you grow it too large. Nathan Schnieder is a professor of media and communications studies at the University of Colorado Boulder, author of “Governable Spaces” and a proponent of crypto.

Paul Dylan-Ennis of University College Dublin echoes this sentiment, saying “crypto is subculture that refuses to accept it as subculture.” Our problems are largely due to the way that ‘onboarding’ the next billion causes us values to deteriorate.

All along

It is ironic that blockchain has already had a “killer application” after 15 years of searching and spending billions on it.

Satoshi Nakamoto and those who follow in his footsteps have created digital bearer instruments which can be used anywhere and (easily and quickly) taken away from you.

That’s it. Cryptography is all about this.

XMR Price Index and Live Chart – CoinDesk”>(XMR) to buy this or that on the darkweb. You’ll find that crypto is used in niche markets to make a connection with the real world. This includes gray or black markets; stablecoin corridors; and hobbies.

These are massive markets. Today, just as during other times when it seemed like crypto was on the verge of breaking through the mainstream, this use pales in comparison with the speculative usage of crypto. Capital is invested, and then jumps from coin to coins or protocol to protocols, causing the number to rise – creating a circular economic system.

That’s okay. Gambling can be a good use case, but only to some extent. If people want crypto used productively, then developers, investors and founders should build for people with a real need for censorship resistant money and tools. This is a small audience by definition.

It’s just my opinion. Many people disagree.

Other Views

Molly White is the author of Web3IsGoingGreat, a crypto-critical news service. She also writes “Citation Needed,” which argues that crypto has already become mainstream. She said that while there are niche projects, the ship is likely to have sailed with Sam Bankman-Fried and Brian Armstrong rubbing shoulders in Congress and BlackRock and Fidelity offering bitcoin ETFs.

SethforPrivacy, a privacy advocate, educator, and monero superuser, sees it differently. “Unfortunately, most people do not yet understand the importance of Bitcoin, nor are they ready to accept that level of personal responsibility. As such, we must concentrate our efforts on improving Bitcoin so that those who realize the need , today , can benefit from it,” he stated.


Decentralization, it is also argued, will be the main reason why crypto goes global.

Alex Gladstein is the chief strategy officer of the Human Rights Foundation. He said, “The only thing that makes Bitcoin’s global ascension feasible is its most cypherpunk feature: that it’s owned by nobody and operated by users, not by states or corporations.”

It’s not clear what the majority wants. Ethereum advocate Emmanuel Awosika, for instance, admits that “while we believe *everyone* wants privacy, censorship-resistance and protection against nation-state attacks, some people are fine with a product that solves a problem and has good UX.”

Awosika said that while not everyone wants or needs privacy, censorship-resistant technology, and maximum decentralization Awosika also added “We should look into getting crypto in as many hands as possible.”

Roko Mijic of ” Roko’s basilisk fame” argued that scale is what gives decentralized tools their power. This is evident in the fact that Bitcoin is hard to attack due to its miners being spread around the world. “You cannot resist censorship within a small-scale cryptocurrency network, because the government would bring the entire network down,” Mijic stated.

Justin Ehrenhofer of Moonstone Research, Chicago, agreed with this statement, saying that currency can only be useful if widely accepted. “Cypherpunks” should therefore focus on creating systems that are appealing to outsiders. However, the “wide-scale adoption,” he added, has led to a degradation of the spirit of cryptocurrency, as the average user keeps their wealth in custody exchanges.

How valuable is crypto’s core value?

Marc Hochstein is the editor.