So, Ethereum might hit $4,000. We’re witnessing it come from all sides — analysts forecasting it, institutions looking at it, the charts alluding to it. Great, right? While everyone's drooling over potential gains, let's ask a crucial question, a question often whispered but rarely shouted from the rooftops: is this wealth creation equitable? Are we just building a bigger, higher tower of babel after all? Are we doing it at the expense of those who can least afford to pay more?
Whose Voices Are Truly Heard Here?
The crypto story for the last two years has been focused on price targets, ETF inflows and staking yields. B2BINPAY analysts are forecasting a $4,000 ETH, propelled by the diversifying institutions. BlackRock sells Bitcoin, buys ETH. The machine hums, churning out profits. Let's zoom out. Time to turn our backs on the glimmering towers of Wall Street. In the dusty streets of Johannesburg, Nkosi, a single mother, struggles to access affordable financial services.
Will a $4,000 ETH level up her livelihood? Will it really democratize access to DeFi, or just price her out of the market? Will it truly empower her to avoid predatory lending practices, or just make her more vulnerable to the same fraud through new, more advanced schemes? This is not about being anti-innovation, this is about being pro-inclusive innovation.
We welcome our all-time high of ETH staked at 34.65 million! How large of that aggregate is in the hands of institutions? How about by ordinary citizens in pursuit of the American dream? The accumulation of wealth in cryptocurrency is a disaster waiting to happen. Are we really creating a more decentralized system? Are we merely replacing the emperors with the same old power structures in fancier jackets?
The Environmental Cost of Digital Gold
Even after the Merge, Ethereum continues to have an environmental impact. Now institutions congratulate themselves for purchasing carbon credits—surely that is doing more than our share right? Are they truly and significantly increasing the positive impact of their investments? Or are they doing little more than greenwashing while communities hit hardest by climate change continue to pay the price.
The amount of energy used to confirm one transaction is staggering. Furthermore, the e-waste created by mining hardware—which remains even when hardware is salvaged or recycling is prioritized—is damaging. This concern strikes developing countries the most. Ironically, these are the same communities where Ethereum is often hailed as the antidote to financial inequality. To build a new financial system on a platform that is, in effect, aggravating environmental racism—is that ethical?
I see an unexpected connection here. It's like the diamond trade. We are all attracted to the brilliance of diamonds. How many of us know the blood diamonds and human cost that lies behind their glitter. We need the same consciousness applied to the environmental and social costs that were incurred to produce crypto currencies.
Responsible Investment – More Than Just Buzzwords
We still believe that Ethereum, and technology in general, can be a tremendous force for good. Through the solutions provided by decentralized identity, individuals can better control their data. Microfinance platforms can provide access to capital for underserved communities. Supply chain transparency can help us guarantee the goods we procure are ethically sourced and produced. These are just possibilities, not guarantees.
The $837 million in ETF inflows is a clear sign of institutional interest. Its release is just as much a cautionary tale about the power these institutions have to create change. Further, they have a heavy corporate responsibility to invest responsibly, to focus on creating long-term social impact over chasing quarterly profits. They should be funding projects that serve marginalized communities and improve their quality of life—not projects that would pad private developers’ profits.
We need to ask for more than nice words. We don’t just need to fund institutions though, we need to hold these institutions accountable for their actions. We need to start asking the hard questions about who wins when Ethereum succeeds, and who loses out. For if we fail to do that, the $4,000 dream will turn into a nightmare for the people that need it most.
Finally, let’s remember that the promise of Ethereum lies beyond speculation. Financial inclusion is at stake. If the maximum price suddenly spikes then the cost of entry increases exponentially. Is that the type of DeFi we really want to encourage?
