In the spirit of the season and the dawn of a new year, it’s only right that we ride the wave of transformation in the collective consciousness of both the crypto world and the very essence of humanity. The recent approval of a Bitcoin ETF by the SEC is a major milestone for the crypto ecosystem, as it signals a growing acceptance of cryptocurrency and also represents a validation of the underlying technology.
The approval signals not only a maturation of the crypto market but also an increasing intergration of traditional finance and the innovative, decentralised principles that underpin the crypto ecosystem. Cryptocurrencies and their underlying technology are bound to disrupt more than just the financial services industry; in the words of Balaji, “the Bitcoin ETF is the spiritual reversal of Executive Order 6102” and this moment signals an opportunity for early adopters to immerse themselves in the different use cases of the underlying technology because more is to come.
For a cryptocurrency like Ethereum that, for a very long time existed between Bitcoin on the one end (i.e., Ethereum as a store of value), and other Layer 1s such as Solana on the other end (i.e., Ethereum as a decentralised platform that can be used to build cool things).
Given that the Bitcoin ecosystem has matured to this point, we can confidently say it now qualifies as base money (i.e., Bitcoins storyline is certified and it’s viewed in the same light as gold as well as fiat currency). Meanwhile, Ethereum, once primarily a settlement layer for its own ecosystem, has been increasingly venturing into Layer 2 scaling solutions and protocol-level upgrades. This evolution toward empowering other platforms and fostering a diversified application landscape solidifies its position as a central hub for decentralised finance and future iterations of blockchain technology. These interconnected developments suggest that Bitcoin’s potential ascension to base money status could create fertile ground for Ethereum’s Layer 2 ecosystem to flourish, as users seek additional value layers and diverse financial instruments built upon a more stable foundation.
Ethereum is widely distributed and its community has grown quite remarkably; this (I’d like to argue) qualifies it as community money (i.e., Ethereum is based around activity, innovation and a vibrant group of like minded individuals with aligned goals) in the cryptocurrency ecosystem. I’d even make a further argument that Ethereum is currently the best representation of community money in the cryptocurrency ecosystem.
It is however important to acknowledge that the philosophical differences that exist between individuals that advocate for a decentralised future versus those that dissent the idea and are more interested in the centralised status quo are still significant and this was reflected in the approval. According to the SEC, the proposals drew votes of approval from Gensler, Peirce and Uyeda. Crenshaw and Lizárraga dissented. A 3-2 majority is needed for approval but that was a close call!
The thing is, we’ve come a long way but there’s still a long way to go before we get to our intended destination. Remember, the crypto revolution is a collective effort. Each individual’s voice, action, and contribution shapes the trajectory of this transformative movement. Let’s harness the collective consciousness, navigate the uncertainties, and build a future where Bitcoin and its ilk reach their full potential.
In essence, the Bitcoin ETF approval is a spark that ignites the collective consciousness of the crypto ecosystem. It’s a call to action, an invitation to participate in shaping the future, and a reminder that the best is yet to come.