You’re seeing the headlines scream “Ethereum Skyrockets!” and “Petra Upgrade Drives Ethereum Rally!” But as I sip my café au lait here in Paris, watching the morning bustle, I can't help but wonder: who really benefits from this digital gold rush? Or is it the tech bros on Silicon Valley? Or is it the single mother who can no longer afford croissants for her kids because inflation has come to roost.

Forgotten Voices Amidst Digital Noise

We’re sold on decentralized finance and smart contracts – ideas just as alien to the average person as quantum physics. What of Marie on the street, who has a small flower store? She’s not concerned about ETH gas fees, she’s concerned about her skyrocketing energy bills. Families cannot afford to wait on action with an unjust financial system. Therein lies the rub, as the promise of a new financial paradigm unravels and feels hollow and disingenuous. Have we become so enamored by the disruptive potential that we’ve lost sight of the human impact.

At least, that’s the story I kept hearing at the boulangerie last week. One plaintive old chap was bemoaning the fact that his pension didn’t even pay his rent. With crypto, he had heard tales of people making overnight fortunes. He was very much afraid of losing his life savings to a fraud. He speaks for the millions whose cries have been muted – those lost voices overwhelmed by the din of positive market movement.

Innovation's Shadow: Who Pays the Price?

Yes, Ethereum has finally reclaimed its $1,900 realized price. Long-term holders are in profit, and Binance is dealing with ETH outflows, which are both signs of confidence. Don’t be misled into thinking that this is entirely good news. The energy consumption alone is staggering! Realistically, how can we continue to advocate for the very technology that is driving climate change, and at the same time, cry about the disappearing glaciers? It seems like we’re constructing a digital utopia atop an environmental bombshell.

These USDT withdrawals from Binance, as well as our recent ETH inflows, are a toxic combination. Liquidity is a worry. What happens when the music stops? Who will be left holding the bag? How will those savvy investors figure out the best time to sell? Or will it be the mom on Main Street, tempted by promises of easy fortune, who invested at the top?

I am reminded of the dot-com boom. The excitement was contagious, the possibilities endless. When the bubble inevitably burst, millions of people lost everything financially. Are we destined to repeat history?

Responsible Tech: A European Perspective

Maybe it’s just my European upbringing, but I think we should err on the side of caution. I know the American mantra of “move fast and break things” doesn’t rub the right way with a lot of people. We need regulation. We need ethical considerations. At the end of the day, we need to make sure technology is in service of humanity and not the other way around.

Instead of blindly chasing profits, let's ask ourselves some hard questions:

  • How can we make Ethereum more accessible to everyone, not just the tech-savvy elite?
  • What measures can we take to mitigate its environmental impact?
  • How can we protect vulnerable individuals from scams and fraud?

All this leads to the Petra upgrade, which, technically impressive as it may be, should not divert our attention from these basic questions. What we need is innovation, real responsible innovation, the kind that serves all of society and not just the rich.

Ethereum’s rise is either the real revolution or it’s just another bubble about to pop. Whatever the case, tread very carefully. Never lose sight of the human cost, and never let ambition outweigh your code of ethics. Let’s not make Marie’s croissants suffer on the pyre of decentralized finance. Together, let’s create a future in which technology works for all people—not just those who are already privileged.