Will Bitcoin Benefit Main Street or Wall Street in the Future?

Is Bitcoin still a means of financial independence, or is it gradually being integrated into the system it aimed to disrupt? To delve into this ideological conversation, I recently engaged in a fascinating discussion with Sky Wee, the founder of Sky Ventures Labs, focusing on early-stage investment and a leading voice in advocating for blockchain technology and digital currencies. Sky, who first gained recognition in gaming and esports, has amassed a considerable following across Southeast Asia and now advises various global Web3 initiatives. He has also been honored as a Forbes 30 Under 30 recipient.

For many years, Bitcoin was viewed as a beacon of defiance—a decentralized solution to the issues posed by central banks, inflationary currencies, and extensive government control. However, with institutional leaders like BlackRock, Fidelity, and sovereign wealth funds embracing it, we face an uncomfortable and often contentious inquiry: Is Bitcoin still the currency of the people, or is it transitioning into an asset for Wall Street? Sky Wee, a steadfast Bitcoin supporter and advocate for decentralization, shared insights that highlighted both the aspirations and hard truths regarding Bitcoin’s evolving identity. While opinions may differ on Sky Wee’s perspectives, the ongoing discussion on this critical issue in the industry is both stimulating and enduring. The recent cycle of bear markets and global geopolitical tensions adds further intrigue to this landscape.

Bitcoin’s Institutional Validation — Or Infiltration?

“Bitcoin was always designed to act as a safeguard against the conventional financial system,” Sky Wee remarked. “What we’re witnessing is the system beginning to recognize its worth.” This observation holds weight. The emergence of ETFs and corporate treasuries doesn’t invalidate Bitcoin’s mission; rather, it strengthens it. Nonetheless, as a realist, one cannot ignore the shift in discourse and authority. Bitcoin might still be permissionless in its coding, but the patterns of ownership are starting to resemble those of traditional assets. Sky Wee further explained: “Bitcoin remains ‘people’s money’ as long as individuals continue to hold it.” This is true, yet there lies a caveat. If average users prioritize convenience over autonomy—choosing custodial ETFs instead of self-custody—the protocol may retain its decentralized nature, but the surrounding power dynamics will shift.

Retail’s Role In A Bitcoin Future

When I inquired about DeFi maximalists, proponents of decentralized finance who worry that institutional involvement will centralize Bitcoin’s supply, Sky Wee acknowledged their apprehensions but offered a fresh perspective on the risk. “The real risk isn’t institutions purchasing Bitcoin—it’s retail not participating.” This challenge prompts thought. The 21 million cap is fixed, and no agency, regardless of its power, can change Bitcoin’s monetary policy. However, ownership is crucial. The fewer individuals who possess it, the greater influence those individuals hold—not over the protocol itself, but over its narrative, market dynamics, and future trajectory.

So, what does this signify for the average person? “Institutions building Bitcoin reserves indicate long-term value,” Sky Wee contended. “It brings credibility, easier access, and a more stable price floor. Nevertheless, individuals maintain an advantage—with the ability to self-custody without needing approval.” This paints an enticing picture: while Wall Street may create the pathways, the retail community still controls the direction—if they decide to. However, history has demonstrated how swiftly early adopters can be marginalized and how institutional infrastructure often reinforces corporate control. The promise of accessibility may turn into a façade masking a lack of inclusivity. Sky Wee’s viewpoint is evident: institutional adoption, while potentially transformative, does not inherently betray Bitcoin’s fundamental principles. He acknowledges the increase in liquidity and credibility but emphasizes, “Bitcoin remains permissionless. It does not discriminate based on ownership. The real question is whether retail investors will continue to accumulate or allow major players to take over. Bitcoin stays as ‘people’s money’ as long as individuals hold it.”

Bitcoin Doesn’t Need Wall Street. But Wall Street Needs Bitcoin.

While I don’t view myself as an idealist, I truly believe that Bitcoin and a broader array of digital currencies carry significant implications and value akin to digital gold. To that extent, I fully advocate for its importance. However, I also recognize the increasing reality that institutional adoption simplifies mainstream acceptance, yet it also leads to the inevitable centralization of Bitcoin within institutional frameworks.

Consider the example of Bitcoin mining: it was once feasible to mine Bitcoin using a standard PC, but now the barriers are high. Today, it requires sophisticated machines operated in farms located in places like Texas and Norway, along with the purchase of advanced AI chipsets—pushing it beyond the reach of the average person. Manipulation of electricity prices can even have a direct impact on Bitcoin values.

The broader trend is recognizable. Every revolution, be it industrial, digital, or on-chain, opens opportunities for those previously marginalized—first through knowledge, then tools, and subsequently access. But ultimately, consolidation usually follows.

According to Sky Wee, the discussion surrounding Bitcoin’s institutional entanglement isn’t about whether it serves Wall Street but rather who is dependent on whom. “In the short term, yes. We’re already experiencing Bitcoin responding to macroeconomic factors like interest rates and stock market cycles. However, Bitcoin’s core principles remain unchanged—it maintains a fixed supply, operates on a decentralized network, and functions round the clock, unlike traditional markets. In the long run, Bitcoin doesn’t require Wall Street, but Wall Street has a vested interest in Bitcoin. The more the traditional system falters, the more apparent it becomes that Bitcoin represents a viable exit strategy.”