Early adopters of Bitcoin are unlikely to shed their skepticism regarding institutional adoption anytime soon, according to Preston Pysh, co-founder of Bitcoin venture fund Ego Death Capital.
“A portion of the culture that brought Bitcoin to its current standing is evaluating its future and expressing concerns, saying no, no, no, this is all going in a negative direction,” Pysh stated in a conversation with Natalie Brunell on the Coin Stories podcast this past Friday.
Pysh pointed out that the involvement of institutions in “institutional-like activities,” such as Bitcoin (BTC) derivatives, is raising alarms among some Bitcoin enthusiasts about the long-term implications and whether Bitcoin can still function as the safe-haven asset it was intended to be.
“Am I being scammed like in all the previous frauds that came before this wave?” is a question Pysh says some members of the Bitcoin community are contemplating as institutional interest rises.
Bitcoin enthusiasts who propelled it past $1 trillion express concerns about its trajectory
The remarks come amid ongoing discussions within the Bitcoin community regarding whether increasing institutional interest is diverting Bitcoin from its original goals.
“For those individuals who have made Bitcoin what it is today—over a trillion dollars—it mostly involved self-custodying Bitcoin, clutching onto the keys through 70% and 80% downturns without selling,” Pysh explained, adding:
“The term we often use is we’re Bitcoin psychopaths.”
This discussion follows a heated debate on social media nearly a month ago when crypto analyst Scott Melker, also known as The Wolf of All Streets, remarked that while Bitcoin “is incredible,” it has been partially taken over by the very entities it was designed to hedge against.
In addition, Ryan McMillin, chief investment officer at Merkle Tree Capital, recently told Cointelegraph that the sale of older Bitcoin to newly established institutions signifies its “integration with the financial system.”
Institutions will approach Bitcoin “very differently” than individuals: Pysh
Pysh elaborated that the core ethos of Bitcoin is being tested, and he anticipates it will continue to face scrutiny as institutional interest broadens.
“I believe it will head in a direction where various users, particularly institutions, will utilize Bitcoin in ways distinct from how individuals use it,” Pysh asserted.
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“That’s a tough reality for some to accept,” he noted.
“Overall, a significant aspect of Bitcoin culture revolves around skepticism and questioning everything,” he added.
According to a March 18 report from Coinbase and EY-Parthenon, 83% of surveyed institutional investors stated their intention to increase crypto allocations by 2025.
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