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Is Bitcoin Still the People’s Money—Or Has Wall Street Taken Over?

Is Bitcoin still a decentralized tool for financial freedom, or has institutional adoption handed control to Wall Street? Explore the evolving role of Bitcoin and what it means for retail investors.

Bitcoin was born in the ashes of the 2008 financial crisis—an answer to failing banks, inflation-prone currencies, and centralized monetary control. Touted as “the people’s money,” it promised permissionless access, borderless transactions, and an escape from the grip of financial elites. But 15 years later, the cryptocurrency stands at a critical juncture. Wall Street has arrived—with ETFs, hedge funds, and institutional custodians buying in. Is Bitcoin still the tool of financial sovereignty it once was, or has it quietly become another asset in the portfolios of the powerful?

Table of Contents

The Rise of Institutional Interest

In January 2024, the U.S. Securities and Exchange Commission approved several spot Bitcoin ETFs, opening the floodgates for traditional financial giants to enter the Bitcoin market. Firms like BlackRock, Fidelity, and various sovereign wealth funds now hold substantial Bitcoin positions.

To many, this signals validation. Sky Wee, a blockchain advocate and early Bitcoin supporter, put it simply: “Bitcoin doesn’t need Wall Street. But Wall Street needs Bitcoin.” According to him, institutional adoption adds credibility, liquidity, and stability. With more exposure and ease of access, even retail investors benefit—at least in theory.

But at what cost?

The Ownership Shift: From Many to Few

Bitcoin remains decentralized in protocol—no single entity can change its monetary policy or seize control of its network. But ownership tells a different story. As institutions accumulate large volumes of Bitcoin through ETFs and custody solutions, power begins to centralize—not in code, but in influence.

If the top holders of Bitcoin are no longer cypherpunks and early adopters, but large custodians and asset managers, the narrative surrounding Bitcoin’s future could be shaped by those same traditional financial players it was meant to disrupt.

Sky Wee warns of a subtle shift: “Bitcoin may remain permissionless in design, but its impact depends on who holds it and how they use it.”

The Retail Investor’s Dilemma

Retail investors once mined Bitcoin on home computers. Today, Bitcoin mining is a capital-intensive industry requiring high-tech machines, AI chips, and vast electricity resources. It’s no longer accessible for the average user. Similarly, while Bitcoin wallets are still free and open-source, many people now choose convenience—buying through custodial platforms or ETFs instead of self-custody.

This trend introduces a paradox. The very people Bitcoin was meant to empower may be voluntarily giving up control. “The real risk,” says Sky Wee, “isn’t institutions buying—it’s retail not buying.”

As long as retail investors participate and hold their own keys, Bitcoin can remain “the people’s money.” But if they opt out or rely on institutions, the decentralization of power is eroded, even if the protocol stays intact.

ETFs: Trojan Horse or Gateway Drug?

Bitcoin ETFs are a double-edged sword. They offer exposure without the complexity of wallets or seed phrases, which could onboard millions of new users. But they also introduce layers of financial intermediation—ironically, the very thing Bitcoin was designed to eliminate.

By holding Bitcoin on behalf of investors, custodians reintroduce a central point of control. These ETFs could one day vote on forks, influence policy discussions, or lobby regulators—shaping the protocol’s ecosystem without holding any real philosophical stake in it.

Wall Street Needs Bitcoin More Than Bitcoin Needs Wall Street

Despite these concerns, it’s important to recognize that Bitcoin still holds the qualities that made it revolutionary: fixed supply, borderless transferability, and resistance to censorship. It operates 24/7, unlike traditional markets. It is not reliant on banks to function. That independence is what makes it attractive to Wall Street in the first place.

In an age of mounting government debt, inflation concerns, and centralized monetary manipulation, Bitcoin represents a digital exit door. For many institutions, it’s not about belief—it’s about hedging.

The Future Depends on Participation

Bitcoin’s fate as “people’s money” or “Wall Street’s asset” doesn’t hinge on its codebase—it hinges on who chooses to use it and how. If individuals continue to buy, hold, and self-custody their Bitcoin, they preserve its grassroots nature. If not, the infrastructure built by institutions may reinforce institutional dominance.

Sky Wee offers a balanced view: “Institutions may build the roads, but retail investors still hold the steering wheel—if they choose to.”

Conclusion

Bitcoin is, and always has been, a mirror. It reflects the values and choices of its participants. Whether it becomes a tool of liberation or just another financial product is not a matter of design, but of action.

Wall Street has entered the room. But the door is still open—for everyone else.

FAQs

What does it mean for Bitcoin to be “the people’s money”?

It means Bitcoin was designed as a decentralized currency that anyone can use, own, and control without needing banks or financial intermediaries.

How has Wall Street influenced Bitcoin recently?

Institutional investors, including major firms like BlackRock and Fidelity, have entered the market through vehicles like Bitcoin ETFs, which has increased adoption but raised concerns about centralization.

Does institutional adoption threaten Bitcoin’s decentralization?

Not at the protocol level—Bitcoin remains decentralized by design. However, if large institutions hold the majority of Bitcoin, they could influence the ecosystem’s direction and public narrative.

What are the risks of buying Bitcoin through ETFs?

ETFs offer convenience but remove self-custody, meaning you don’t control the private keys. This reintroduces third-party risk, which Bitcoin was meant to avoid.

Can retail investors still benefit from Bitcoin?

Yes, especially if they use self-custody methods like personal wallets. Participation and education are key to preserving Bitcoin’s original intent.

That's all for today, see ya tomorrow! If you want more, be sure to follow our X (@croxroadnewsco), Instagram (@croxroadnews.co), Youtube (@thebitcoinlibertarian), Tiktok (@croxroadnews) and nostr - [email protected]

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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