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Author: @kenchangh
Compiled by: Hu Tao, ChainCatcher
Initial Motivation
I became interested in politics during my teenage years. Among all the books that radicalized my thoughts, the works of Ayn Rand (The Fountainhead, Atlas Shrugged) had the most significant impact. In 2016, with a heart full of liberal ideals, I donated to Gary Johnson. Besides being a loyal follower of Rand, I also have a keen interest in computer programming, so cryptocurrency felt like a natural fit for me. The spirit of cyberpunk deeply attracted me. The concept of Bitcoin as a private bank for the wealthy fascinated me. The idea of being able to cross borders with a billion dollars in assets has always been a shocking thought for me.
However, over time, I feel like I have lost direction in the cryptocurrency field. After fully committing, the initial allure of cryptocurrency's transformative power gradually faded. I became disappointed with my target customers and the groups I truly fought for. I completely misunderstood the difference between the real users of cryptocurrency and the audience it markets to. Cryptocurrency claims to help decentralize the financial system, and I believed that completely, but in reality, it is merely a super system of speculation and gambling, just a replica of the existing economy.
Reality has given me a hard slap. I am not building a new financial system; I have built a casino. A casino that does not call itself a casino, but it is the largest, always-online multi-user casino ever conceived by our generation. On one hand, I am proud that I have spent at least two decades building this casino. On the other hand, I feel that I have wasted my entire twenties on this. I have wasted my life on this, but at least I have made a fair amount of money from it.
Look at what they do, not what they say.
Cryptocurrency is confusing. On one hand, some promoters claim they want to completely replace the existing financial system with a blockchain-based system. I can easily imagine such a system — where you only need to hold USDC or Bitcoin in your bank account, and you can send a billion dollars to anyone in the world in seconds. This idea is powerful, and I still believe it.
However, the incentive mechanisms have completely distorted reality. In the real world, every market participant is eager to invest in the development of the next generation Layer 1 (Aptos, Sui, Sei, ICP, etc.). The outcome of the Layer 1 battle in 2020 was that ultimately, there was only one winner — Solana. This led people to strongly prefer the fourth position (Bitcoin, Ethereum, Solana, and other projects). This incentive mechanism has supported hundreds of billions of dollars in market capitalization, but has it really promoted net growth towards an ideal new financial system? Although venture capitalists would write 5,000-word articles to explain this point, the answer is no; it did not facilitate the establishment of a new system. In fact, it has almost burned through everyone's money (both retail and venture capitalists), so in the new financial system, everyone has less money.
I am not only targeting L1 platforms. In the cryptocurrency field, I can cite many similar examples — spot decentralized exchanges (DEX), real-time decentralized exchanges (DEX), prediction markets, meme coin platforms, etc. The enthusiasm and competition in these niche markets do not contribute positively to the ultimate goal of building a more complete financial system. Contrary to what venture capitalists say, we do not need to move the casino to Mars.
Economic gambling
If I say that I joined the cryptocurrency field without any economic motivation, that would be a lie. As a reader, you might think that since I have made enough money, I should just exit the cryptocurrency industry, which sounds hypocritical. Yes, perhaps I am indeed hypocritical. But perhaps I am just tired of the quagmire of encouraging financialization and gambling.
Profiting from each other in a zero-sum game is not a way to accumulate wealth in the long term. It may seem that way on the surface, but it is not. After eight years of rolling in the cryptocurrency field, I have completely destroyed my ability to discern sustainable business models. In the cryptocurrency field, you don't need a successful business or product to make money. The cryptocurrency industry is filled with a large number of tokens that have high market values but are almost ignored.
The real world does not operate that way. If you want to create real value for customers, not just gambling and entertainment (by the way, this is what casinos do), then this zero-sum game business model is completely unworkable.
Conclusion
I used to think that financial nihilism was a lovely and harmless concept. Moreover, I felt that continuously introducing zero-sum games to the next generation was not a problem. I have no doubt that Bitcoin will one day reach one million dollars. But this has nothing to do with the financial games that this industry is concocting.
This industry mindset is extremely harmful, and I believe it will lead to the long-term collapse of social mobility for the younger generation. You have witnessed all of this firsthand, and I think what truly matters is that we must muster the courage to resist the temptations of those worthless games.
CMS Holdings once said a profound truth: 'Do you want to make money, or do you want to prove you are right?' This time, I choose to prove I am right.
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Editor's note: This blogger's article has sparked a lot of discussion among industry professionals on X, and here are some of the popular responses:
DoubleZero co-founder Austin Federa:
I respect your awareness that your moral standards do not align with your current behavior. This takes courage and self-reflection, which is not easy. But from a broader perspective, I believe the natural state of cryptocurrency is almost the ultimate state of the entire economy; I don't know if this is something we should worry about. The charm of cryptocurrency lies in its ability to strip us down to the essence, to the most primitive level, forcing us to build from fundamental principles. I often think of the opening scene of the TV show (Silicon Valley) because it accurately depicts the self-deception that exists under the traditional economic order. The reason I love cryptocurrency is that it confronts all hypocrisy and reveals the truth.
Dragonfly Managing Partner Haseeb Qureshi:
There has always been a casino in the cryptocurrency field. The first hit application on Bitcoin was Satoshi Dice (2012). The first hit smart contract on Ethereum was King of the Ether Throne (2015), which is essentially a Ponzi scheme. Once programmable money emerged, what people first thought of was gambling and playing some silly games. It's human nature. ... Casinos are glamorous and attract a lot of attention on social media (where people can quickly win and lose fortunes, easily convincing themselves this is their lucky moment), but if you only focus on the glamour of the casino, you will miss the more important story. The reason I initially entered this industry, a decade ago, seemed almost like science fiction — cryptocurrency is a better vehicle for finance; it will permanently change the nature of money, and the balance of power between individuals and governments will undergo a permanent shift — today, this story is becoming a reality. Bitcoin is challenging state authority. They are now also starting to purchase Bitcoin on their own balance sheets. Stablecoins are influencing monetary policy. Central banks around the world are rushing to respond. Permissionless smart contracts like Uniswap and AAVE have now surpassed the scale and value of unicorn fintech companies. The world is undergoing tremendous changes around cryptocurrency. Perhaps it will take longer than you think, but the adoption of transformative technology is almost always slower than you anticipate. ... It is well known that the internet took over 20 years to emerge. Do you really think we will replace the financial industry — the world's most heavily regulated and government-focused industry — in just five years? If you feel frustrated because you participated in some project like a 'meme coin L2' and didn't get rich, take a deep breath. This industry doesn't owe you anything. However, believe it or not, all these mental compromises regarding timelines are actually beneficial. Forests can only stay healthy through regular clearing of dead branches and leaves. Without occasional fires to clear things up, rot will spread, and eventually, the entire forest will decay. This is a harsh reality, but to sustain growth, the only way is to remove those that no longer serve a purpose. All this negative sentiment on the timeline needs to be eliminated in some way. Let those people continue to leave, and the air will be a bit fresher. These people need to either change their minds and refocus on the future, or they should leave, so the rest of us can continue working. Because the work is not finished.
Crypto trader Crypto_Painter:
The reality is indeed like this; it is evident that the author's 'moral compass has shattered,' bluntly stating that the crypto market has devolved into a group of gamblers and casinos...
But interestingly, I heard the same remarks in 2018 and again in 2022. If you understand the operational logic of the crypto market, you will find that when external liquidity floods in, it will inevitably give rise to the prosperity of gamblers and casinos...
And the gambling nature of the market will naturally consume the remaining liquidity...
Thus, the entire crypto market has formed a cycle of 'value investment' - 'belief investment' - 'emotional speculation' - 'total disappointment'...
Looking back at early 2023, the voices promoting BTC and value investment were so loud, and now the desolation is just as cold.
But the cryptocurrency market has gone through this continuous cycle of 'believing' - 'doubting' - 'denying.' We don't need to believe that a certain public chain will ultimately succeed; we just need to believe that the narrative of decentralized networks can endure.
In the future, there will be new liquidity entering, followed by prosperity and chaos, but as long as the range of this narrative spreads, the long-term direction of this market will be upward.
2025~2026 is a phase of questioning, and there may be a phase of disappointment in the future, but human nature remains unchanged. Whether it is investment or speculation, there is an eternal value in surviving.
Casinos and gamblers are merely small gaps in reducing bubbles; the market has its own adjustment mechanisms, so conversely, we should thank those trash casinos and trash projects.
Their emergence represents a part of the market that needs self-regulation. Without bubbles, there will be no phenomenon of profiting from bubbles.
Learning to accept this nauseating market phenomenon is necessary to accept the scale of the next bubble's expansion.
Quai Network co-founder Alan:
You are completely correct. Cryptocurrency has gradually become a tool; it is no longer dedicated to promoting financial sovereignty or expanding the market pie, but rather to extracting profits. The boundary between building a financial system that benefits humanity and reducing it to a gambling tool is blurred. Every project and founder must make a choice: do they sincerely want to make the world a better place, or do they just want to participate in this game? ... While it is easy to become numb, I suggest you dive deeper, find those genuine projects that still promote the spirit of cypherpunk. That is where the real excitement lies. That is where true positive-sum games can occur. Interestingly, I believe the next direction for cryptocurrency development is actually more aligned with Bitcoin. The narratives around privacy (such as Zcash, Monero), established cryptocurrencies (such as Dash, Decred, etc.), and proof-of-work (PoW) projects will return.
