Vitalik Warning: If Institutional ETH Holdings Continue to Grow, Ethereum Will Face Two Major Threats

BlockBeats News, November 20th, Ethereum founder Vitalik Buterin warned at the Argentina Devcon conference that if institutional Ethereum holdings continue to expand, Ethereum will face two major threats. The primary risk is the potential alienation of those who truly care about decentralization and core developers, leading to community erosion. The secondary risk is making incorrect technical choices; institutional pressure may drive inappropriate technical decisions, such as a 150-millisecond block time that, while beneficial for high-frequency trading, would prevent ordinary users from running nodes, causing geographic centralization.

Vitalik emphasized that Ethereum should focus on its global, permissionless, and censorship-resistant protocol characteristics, maintain a strong core community, and uphold the values that differentiate Ethereum from traditional finance.

It is reported that currently, nine Wall Street firms hold over $18 billion worth of ETH, with many predicting that institutional holdings may exceed 10% of Ethereum's total supply.