Vitalik: If BlackRock continues to scale, Ethereum will face a threat

According to DL News, Ethereum founder Vitalik Buterin warned at the Devconnect conference in Buenos Aires that if institutions like BlackRock continue to accumulate ETH, Ethereum will face two major existential threats.

Currently, nine Wall Street firms hold over $18 billion in ETH, and analysts predict that institutional holdings could exceed 10% of Ethereum's total supply. Vitalik pointed out two risks:

• Threat One: Displacing core developers. Institutional dominance may alienate builders who genuinely care about decentralization, potentially leading to a loss of the core community.
• Threat Two: Incorrect technology choices. Institutional pressure may drive inappropriate technical decisions, such as a 150-millisecond block time that benefits high-frequency trading but prevents ordinary users from running nodes, resulting in geographical centralization.

Vitalik emphasized the solution: focus on the characteristics of global, permissionless, and censorship-resistant protocols, maintain a strong core community, and uphold the values that distinguish Ethereum from traditional finance.