Crypto Rebound: Is It Freedom for All, or Just the Few?

The crypto market, in general, just seems to be coming back to life, like a flaming bird emerging from the crypt of last month’s bear. We see the headlines: market cap up, sentiment improving, governments dipping their toes in. But before we uncork the champagne and declare crypto the savior of the global economy, a critical question lingers: who really benefits from this rebound?

Has the everyday American finally started to take control of their financial future? Or is this yet another poorly conceived wealth transfer that simply makes the rich even richer? Let's be brutally honest: the narrative of crypto as a democratizing force often clashes with the reality of its current accessibility and impact.

Digital Divide: Widening Wealth Gaps?

Think about it. That freedom to engage with the crypto frontier, to benefit from this recovery, depends on access. First, you should have up-to-date, consistent internet for all your devices. You need the technological know-how and a good chunk of disposable income to make your investment. This is where the ‘unexpected connection’ really starts to shine. Remember the early days of the internet? The promise was equality of opportunity, fairness, universal connectivity – the rhetoric of a level playing field. The reality was a digital divide, distancing the haves from the have-nots. Are we truly fated to go through this all again with crypto?

I’m writing you today from Accra, Ghana, and I experience this disconnect every day. As the former plan their next Bitcoin purchase, the latter are unable to access even the most basic financial services. The digital divide is more than a tech gap. It’s an economic opportunity gap. A 13% market cap increase is meaningless if the vast majority don’t even have access to the transaction fees.

The fear here is real. Or, instead, we creating a system that benefits mostly connected, well-informed, and rich first-movers in the coming crypto restart. This would further entrench current inequities. I urge you to consider what we have to lose – the public welfare.

Environmental Cost: Developed Gains, Developing Pains?

Let's not forget the elephant in the room: the environmental impact of certain cryptocurrencies. To be clear, not all cryptocurrencies are energy hogs, but Bitcoin’s proof-of-work model is the largest and most dangerous of its kind. And most tellingly, who pays the price in these dubious claims of energy efficiency? Most times, it’s in developing countries, where energy infrastructure is already being stretched, and time and money are limited. The unexpected connection here is environmental justice. We cannot be advocates for a great technology that lifts up some while deepening harm to others and to our planet.

In doing so are we, in effect, exporting the environmental costs of crypto’s windfall to the people least able to afford it. This is not solely an environmental concern, but rather an equity and global accountability issue. And we need to ask ourselves, what does responsible innovation look like.

Financial Inclusion: Real, or Just a Promise?

This is one of the most attractive aspects of crypto and its use across developing countries has proven this. After all, improving access to financial services for the unbanked and underbanked is extraordinarily attractive. This potential is most acute in developing nations. Picture this world—we make remittances instant and almost free, we give small businesses capital without predatory fees. This is the amazement and curiosity that we must fight for.

The reality is often more complex. Volatility, lack of regulation, and the potential for scams make these digital assets harmful to populations that are already vulnerable to exploitation. Are we truly empowering people if we're exposing them to financial instruments they don't fully understand, and which could wipe out their savings overnight?

Ethereum ETFs have faced outflows for the last seven weeks. Such a trend is a harbinger that things may not be boomin’ as rosy as the market seems.

The New Hampshire and North Carolina bills would allow crypto. Governments need to be careful.

The crypto rebound presents a unique opportunity. A new chance to create a more inclusive and equitable financial system. This first approach takes an active choice, an active choice to innovate responsibly.

First, we need to reward and create incentives for projects that are genuinely leading the way directly to tackle these challenges. The crypto industry can, should, and must be held responsible for its deficit in social and environmental harm. And we need to hold accountable the actors who currently wield the levers of this developing financial system with high demands for transparency and fairness.

BlackRock’s crypto assets under management hit $50.3 billion, and many analysts expect that number to keep climbing.

• Bridge the Digital Divide: Invest in digital literacy programs and infrastructure improvements in underserved communities.
• Promote Sustainable Cryptocurrencies: Support the development and adoption of energy-efficient consensus mechanisms.
• Develop Regulatory Frameworks: Create clear and comprehensive regulations that protect consumers without stifling innovation.
• Focus on Education: Empower individuals with the knowledge they need to make informed decisions about crypto investments.

The issue is no longer whether crypto can be a force for good — but whether we will collectively commit to making it a force for good. Welcome back, the rebound has arrived in style! Let’s not let the rewards continue to go only to the usual connected special interests. We can’t afford to hope for the best and repeat the mistakes of the past. Let’s create a crypto future that liberates everyone—not just a wealthy few.

BlackRock's crypto assets under management reached $50.3 billion, and it is expected that it will continue to increase.

The question isn't whether crypto can be a force for good, but whether we will make it so. The rebound is here, but it's up to us to ensure that the benefits are shared by all, not just the few. Let's not repeat the mistakes of the past. Let's build a future where crypto truly delivers on its promise of freedom for everyone.