Have you ever come across a narrative where the people around you who are invested into the Crypto preaching against the Bank and govt? Like they tell you future is of no banks and no govt. And they preach you this new blockchain which is a good option for you to invest as that coin is going to the moon. And then you invest and suddenly found yourself into some centralized crypto scheme.

We all have faced this at some point in our crypto journey. So I want to put this article up to show you how the blockchains are going to preach centralized schemes using the decentralized mask.

Oh You Hate Banks & Govt, Good Keep Funds with Us

You have seen what coinflex, Nexo and Celsius did ever since bear market is here. The ROI based companies are all centralized. No decentralized system including DeFi can have it sustainable way to pay people some specific high amount per month. Because in DeFi when the market goes down the liquidity providers get the first hit.

So if you don't like govt, banks and other red tape people and their schemes. Why are you accepting the centralized finance in the name of crypto. Isn't that what defies your first rule? So the people who are into narrative creation against banks and govt. They should think why they are creating such a narrative.

No regulation? Get Ready for Rug Pull

The reason rug pull exists more in crypto than any other industry today is because of lack of regulation. We want world to go decentralized. But we are not ready to self moderate. Nor we have any strong means for the same. But we are going to be sucked into the rug pull zone more if we choose not to regulate.

We don't like to see regulation in this industry because it would only make the crypto ROI low. And it would become like those debt components where the money accumulates low or we are forced to accumulate to avoid taxes. And we don't want the crypto to become asset like that which does not have regulation eating it up. In that case we have to develop means for handling the rug pull.

Blockchain is Future Finance? Yes, centralized finance

Currently the regulation is coming not because govt hates the blockchain. It's because everyday some centralized organization that fails to uphold the narrative of the crypto funding has gone down in the drain. And this means people will demand govt to interfere now. And that is what leads to the regulation. A lot of fake coins and VC funded projects that fly by night won't survive.

If the regulation becomes the norm and normal public and the influencer teach each other on following the regulated path of crypto investment. Then you can say that it's going to be the world of the centralized finance. And any previously born crypto coins as a means to illegally transfer funds without having to worry about the red tape. I suppose that was one of the Bitcoin's original goal which is served.

Most of us who started our journey from Bitcoin, Ethereum to other alt coins. We ended up moving in a circle where things just turned out to be different than we hoped for. And the centralization trap is getting stronger.

Centralization will soon become a reliable norm.

Are we there yet? No.