One of the Internet’s most vocal advocates for Bitcoin expressed an unusually uncharacteristic opinion of Web3 this week. On Monday,
The square Block chief Jack Dorsey took to Twitter to warn blockchain enthusiasts about how Web3 has already been co-opted by investors. “You do not own ‘web3’,” he said in a message detected by Bloomberg. «VCs and LPs do it. It will never escape their incentives. It is ultimately a centralized unit with a different brand. Know what you’re getting into … “
Web3 is the term many in the crypto community use to describe the next iteration of the internet. Using technologies such as blockchain, they argue that the Internet will become a more decentralized entity, free of institutional actors that have dominated it since the early days of the platform. Investment companies such as Andreessen Horowitz have been some of the most outspoken supporters of companies in space. From October, the company had set aside to invest in crypto and Web3 startups. “It̵[ads1]7;s somewhere between a and z,” Dorsey said, referring to “a16z,” the nickname when Tesla boss Elon Musk joined the conversation to ask “has anyone seen web3?”
It is unclear what prompted Dorsey to go to Twitter to say what he did. After all, this is the man who wanted the world to know he had a Bitcoin clock in his kitchen when he testified before Congress. It should also be noted Dorsey runs a company that is heavily involved in blockchain technologies.
What is clear is that his tweet created a stir. At the time of writing, the post has attracted more than 5,000 retweets, 2,000 quotes and 31,000 likes. Naturally, the Bored Ape contingent showed up to tell Dorsey he was “dead wrong,” but just as many came to offer support, calling him “based” for his tweet.
Despite all the buzz Dorsey’s tweet generated, there is a core of truth in what he said. On Monday, , citing a new study from the National Bureau of Economic Research, determined that 0.01 percent of those who have Bitcoin control 27 percent of the digital currency. Another recent study from found that only ten percent of NFT investors completed 85 percent of all transactions involving these assets. Decentralization indeed.
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