Joseph Lubin, CEO of Consensys and co-founder of Ethereum, said the world is on the cusp of a generational paradigm shift, fueled by decentralization, as the world’s current monetary system fails.
He made the statements during a fireside speech ETH Denverwhere he discussed his thoughts on what could drive the next super cycle in technology and finance.
Lubin believes this shift will result in a “super cycle” for the crypto industry as monetary systems evolve and wealth is transferred to younger generations. He said:
“The momentum is building and there’s no stopping it.”
Need for a decentralized system
Lubin painted a broad picture, drawing parallels between historical trends and the current state of the world. He discussed the concept of generational supercycles, theorized by Strauss and Howe, where each generation builds on the previous one until a breaking point necessitates a new system.
Lubin believes we are at the end of the fourth and final phase of this cycle, with current centralized systems reaching their limits and failing to meet the needs of the rising generation.
He contrasted today’s top-down, controlled financial systems with the potential for decentralized trust that blockchain technology offers.
Lubin said Satoshi Nakamoto’s creation of Bitcoin in response to the limitations of traditional finance opened the door for a shift from centralized intermediaries to open, transparent systems where anyone can participate and verify transactions.
Concerns about centralization
Lubin said the recent launch of spot Bitcoin ETFs is generally a positive development for the sector. However, he expressed concerns about the centralization of Bitcoin through these instruments.
He pointed to the possibility of regulatory bodies influencing asset prices through entities such as the Plunge Protection Team, raising questions about the actual control over these assets.
Lubin downplayed the immediate impact of a potential spot Ethereum ETF, suggesting that passionate holders may be more likely to stake their ETH within the protocol to participate in its governance and earn rewards, keeping the assets decentralized.
He added that Ethereum’s true value goes beyond short-term price fluctuations, but in its ability to power diverse applications across industries.
The Consensys CEO also warned of the potential dangers of centralized AI and emphasized the need to intertwine its development with decentralization.
He outlined ongoing efforts within the crypto space to create decentralized versions of various AI functionalities such as storage, computation and data sharing, ensuring responsible and ethical use of this powerful technology.
Lubin emphasized the importance of remaining vigilant against centralized control and working together toward a future based on ethical AI development, user empowerment, and a more equitable distribution of power and resources.