Nic Carter analyzes the five major factions of the Crypto community: a shattered revolutionary dream or an inevitable path of technological evolution?

Aevo co-founder Ken Chang recently posted a long article titled “I wasted 8 years of my life in crypto,” directly pointing out that the crypto world has fallen from ideals into the largest gambling arena of generations, sparking community reflection. Castle Island Ventures partner Nic Carter responded with an article dissecting the crypto world into five major “telos,” indicating that pessimism stems from an obsession with a single narrative.

From idealism to disillusionment: Why do crypto creators feel collectively betrayed?

Ken Chang’s article reflects the common “burnout” in the crypto space. Originally believing in building a new financial order, they instead inverted their efforts to create a 24/7 global gambling hall.

He points out that new L1s are flooding the market, VC funding is fueling wild spending, and perpetual contracts and prediction markets are increasingly resembling gambling infrastructure, while genuine technological progress with public significance remains extremely limited.

(Returning to the mission of cryptocurrency: from speculative culture to founder burnout, revealing the industry’s true crisis)

Why has the ideal been corrupted? First, let’s discuss what the “ideal” of cryptocurrency is.

Nic Carter takes the exit article of Bitcoin pioneer Mike Hearn from 10 years ago as an example, believing Ken’s disappointment is not an isolated case but caused by each contributor’s misunderstanding of “what crypto should become”:

Their details differ but their arguments are the same: Bitcoin/cryptocurrency was originally supposed to be some form of (decentralization or cypherpunk practice), but instead turned into (a centralized gambling venue). Both point to the issue that “current results are not as originally envisioned.”

In other words, they fundamentally debate the divergence of “cryptocurrency’s ultimate purpose or mission.” But in truth, what exactly are our goals?

The “five major objectives” in the crypto space: Are the five camps cooperating or pulling apart?

Nic broadly summarizes the five main objectives currently in crypto, emphasizing that cryptocurrency has never been a single narrative but a blend of five beliefs driving simultaneous innovation.

Reviving sound money: The obsession with Bitcoin’s ideal nation and reality

First is the original dream: Bitcoin maximalists believe BTC can rival or even replace sovereign currencies. Over the past 15 years, Bitcoin has indeed become an important asset, but still far from full monetary reform.

Nic believes its achievements are significant, but supporters still oscillate between hope and disappointment.

(Binance CZ openly debates Peter Schiff: Bitcoin vs. Gold, who wins?)

Programmatic business logic: The revolution of Ethereum’s smart contracts

Led by Ethereum founder Vitalik Buterin, the digital revolution camp envisions writing various cash flows or contractual logic into code to improve efficiency and transparency.

Current achievements include significant growth in DeFi derivatives, but the grand goal of “rewriting the economic order” remains unfulfilled.

Nic believes this path has been successful, but the future it can see now is narrower than previously imagined.

Imagination of digital property rights: The promising but premature NFT starting point

Some factions advocate that “digital assets” should be truly owned like physical property. However, the path of NFT and decentralized social products has so far been unsuccessful and is often mocked as a bubble.

Nic agrees: “We still want to defend our digital assets’ control rights, which may be realized via blockchain, but this is an idea whose time has not yet come.”

Onboarding capital markets: The most boring yet pragmatic innovation

This is the least ideological camp, advocating for blockchain to improve slow, inefficient, and outdated traditional financial settlements. While lacking the cyberpunk mystique, it holds the greatest potential commercial value and is a stable trend.

Nic says: “You won’t see the crypto community particularly enthusiastic about these near-traditional finance topics, but whether good or bad, they have indeed driven part of the industry’s development.”

(Looking at Bitcoin’s future prospects: BTC’s revolutionary mission ends, capital retreats toward tokenized assets)

Global financial inclusion: Striving to meet needs in emerging markets

From stablecoins to self-custody wallets, tokenized stocks, and payment cards, crypto is providing the first opportunity for equitable access to the global financial system in restricted regions.

Nic believes this is currently the most successful area of crypto development and one of the most underestimated visions.

Crypto moving from utopia to pragmatism: The revolution is not as fast as expected, bubbles are inevitable

Nic admits that many of the earliest grand narratives have not yet been realized. Simultaneously, meme-driven speculation as a necessary side effect of technological progress has caused real harm to younger generations; however, he emphasizes this is not the whole of crypto nor the final outcome.

So which camp is heading in the right direction? Nic believes that “staying pragmatic and optimistic” is more important than pursuing specific ideals or narratives:

Whenever you feel pessimistic about the reality of the crypto gambling hall, you must hold on to this point. Speculation and plunder are inevitable external costs, as revolutionary infrastructure launches continuously.

Looking ahead: Bitcoin, stablecoins, DEXs, and prediction markets

Setting aside romantic revolutionary visions, Nic believes the current crypto applications are clearer than ever: Bitcoin is becoming a globally significant asset class; stablecoins are an unstoppable force for cross-border payments and savings; decentralized exchanges (DEX) and prediction markets have created truly product-market-fit (PMF) applications.

Though less grand than earlier narratives, these are sustainable and quantifiable deep infrastructure progress.

(Is the “iPhone moment” of cryptocurrency coming? VC and traders reveal the next decade’s crypto investment principles)

The future of crypto: balancing ideals with reality, accepting limitations within ideals

Nic’s core conclusion is: the purpose of crypto has not disappeared but is more pragmatic and long-term than imagined. Those expecting revolutionary change or overfaith in crypto will only end up unhappy. Looking ahead, the industry is indeed moving in the “right” direction.

The real challenge is not to reject pessimism but to maintain a rational optimism. Neither indulge in fantasies nor dismiss the entire industry because of casino-like elements.

(Reject pessimism and embrace exponential growth of success stories: Why does crypto always have a “doomsday” sense?)

This article by Nic Carter analyzes the five major factions in crypto: shattered revolution dreams or necessary progress in technological evolution? Originally appeared on Chain News ABMedia.