Early Bitcoin adopters maintain a skeptical stance toward institutional adoption, a sentiment unlikely to change soon, according to Preston Pysh, co-founder of the Bitcoin venture fund Ego Death Capital.
Concerns Over Institutional Influence
In a recent discussion on the Coin Stories podcast with Natalie Brunell, Pysh expressed concerns about the direction Bitcoin is heading as institutional players become more involved. “Part of that culture that brought it to where it is, is looking at where this is all going and saying no, no, no, no, this is all moving in a bad direction,” Pysh explained.
Pysh highlighted that the involvement of institutions in activities such as Bitcoin derivatives has sparked anxiety among Bitcoin enthusiasts regarding the cryptocurrency’s future as a reliable safe-haven asset.
Natalie Brunell (left) spoke to Preston Pysh (right) on the Coin Stories podcast on Friday. Source: Natalie Brunell
Bitcoin’s Journey to a Trillion-Dollar Asset
The debate on Bitcoin’s future in light of growing institutional interest is ongoing within the community. Pysh remarked, “For people who have made Bitcoin what it is, getting it here, over a trillion dollars, involved individuals, for the most part, self-custodying Bitcoin, holding onto the keys for dear life through 70% and 80% downturns and still not selling them.”
He added, “The term we like to throw around is we’re Bitcoin psychopaths,” reflecting the community’s enduring commitment to Bitcoin despite market volatility.
Institutional Integration and Its Challenges
Ryan McMillin, chief investment officer at Merkle Tree Capital, noted that the sale of old Bitcoin to new institutions indicates its integration with the financial system. However, this shift has not been without contention. Crypto analyst Scott Melker, known as The Wolf of All Streets, recently sparked debate by suggesting that Bitcoin has been partially taken over by the very forces it was meant to hedge against.
Adapting to Institutional Use
Pysh elaborated on how the Bitcoin ethos is being tested as institutional adoption grows. He anticipates that institutions will utilize Bitcoin differently from individual holders, a transition that may be difficult for traditionalists to accept. “I think that it’s going to move in a direction where a lot of people use Bitcoin the way they wanna use Bitcoin, especially institutions, who are going to use it very differently to how individuals use it,” Pysh mentioned.
He acknowledged that skepticism is deeply ingrained in the Bitcoin culture, with a prevalent attitude of questioning everything. A report by Coinbase and EY-Parthenon from March 18 revealed that 83% of institutional investors surveyed plan to increase their crypto allocations by 2025, underscoring the rising institutional interest.
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