Why hold crypto assets?

The development of the crypto ecosystem this year has recently given me two concerns: The first is my concern about the (unsatisfactory) development of native crypto companies during this cycle; the second is my concern about the erosion of the ecosystem's values ​​as more and more centralized institutions enter the ecosystem. Yesterday's article shared the first concern, and today I'll share the second. During this cycle, two major forces have flocked to the crypto ecosystem: Wall Street capital groups; and traditional institutions centered around various RWA businesses. Often, these two forces are one and the same. Whether we like it or not, these two forces will undoubtedly occupy an increasingly larger role in the crypto ecosystem in the future. And as these two forces join forces, their impact on the entire crypto ecosystem will inevitably become increasingly broad and profound. Their influence will not be limited to tangible factors such as projects and funding, but will also bring about intangible and more alarming factors—the values ​​deeply embedded in their DNA. Values ​​are intangible and often go unnoticed, but they often play a huge role at critical moments. At historical turning points, they can determine an individual's fate; at moments of uncertainty in life, they can shape a person's future. Therefore, I often remind myself to reflect on values ​​when major changes occur. So what are the values ​​ingrained in the DNA of these capital groups and traditional institutions? Everything revolves around centralization: centralized control, centralized oversight, centralized operations, centralized... This value clearly conflicts with the original spirit of crypto. We can usually ignore or forget about this conflict, and sometimes even enjoy the "benefits" of centralization. However, I must warn that at critical moments, it can easily become a bottleneck and even undo all our efforts. Given this, it's important to revisit the original values ​​of the crypto ecosystem. In fact, this value was clearly explained in Satoshi Nakamoto's white paper. Another more understandable and insightful expression of it, expressed in terms of assets, is attributed to Li Xiaolai: This is the first time in human history that technology has achieved the sanctity and inviolability of private property.

What are the specific manifestations of the sanctity and inviolability of private property here?

My understanding is:

- No one can take it away;

- No one can prevent transactions/transfers.

I have 100 yuan in the bank, and the bank suddenly confiscates it for no apparent reason, leaving my account wiped out. Is this 100 yuan my private property?

I have 100 yuan in the bank, and suddenly an institution blacklists my account for no apparent reason, preventing me from making any transfers. Is this 100 yuan my private property?

If any of these two conditions is violated, it is no longer my private property.

Many issues become immediately clear when judged from this perspective.

However, in Bitcoin and Ethereum:

Can anyone confiscate/transfer your native tokens (BTC, ETH)?

No.

Can anyone blacklist the transfer function of your native tokens (BTC, ETH)?

No. In fact, the native tokens of many blockchains (such as A, B, C, and D) also possess these two characteristics. But one day, the US government grew displeased with Chain A and demanded that its team block the account of a "terrorist organization" and freeze its assets. The Chain A team stubbornly refused. This angered the US government, but then they realized, "You only have 21 block-producing nodes?" That's easy. You're just being disobedient, aren't you? I'll use the power of the nation to simultaneously attack all 21 of your nodes and bring down your entire system. Chain B, which has 31 more block-producing nodes than Chain A, was also targeted by the US government. But this is still a piece of cake in the face of national power. The next targeted chain, C, has 100 nodes. This is a bit of a challenge for the US government. The next targeted chain, D, has 1,000 nodes. This is even more challenging for the US government. ... Until a certain blockchain has 10,000 block-producing nodes, at which point the US government can only watch helplessly. When another blockchain has 100,000 block-producing nodes/validators, no one can interfere with this system unless the internet is completely shut down. This is what Vitalik often mentions: considering whether a chain can still function properly if attacked by state power. Only in this way can the native token in the system be truly private property, and its inviolability truly guaranteed. Meanwhile, there are other types of assets in the crypto ecosystem that are not considered private property, such as USDT and USDC. They have blacklisting capabilities. At the mere command of the US government, they are more proactive than anyone else in banning accounts and blacklisting. Of course, although USDT and USDC are also centralized, they do adhere to some rules, which is far superior to institutions that completely disregard rules and private property protections. But we must also be cautious.

I share this concern with you today to remind our readers that, now and in the future, as we recklessly enjoy the benefits and profits brought by these centralized institutions, we must remain vigilant and sober in our hearts:

Are the assets in my hands sacred and inviolable private property?

This value is the ultimate bottom line.