Preston Pysh, co-founder of Bitcoin venture fund Ego Death Capital, says early Bitcoin adopters are unlikely to ease their skepticism toward institutional involvement anytime soon.
“Part of the culture that brought Bitcoin to where it is today involves closely watching its trajectory and saying, ‘No, no, no—this is heading in the wrong direction,’” Pysh told Natalie Brunell on the Coin Stories podcast Friday.
He added that institutional activities, like Bitcoin derivatives, are raising concerns among some Bitcoiners about the long-term effects on the network and whether Bitcoin can continue to function as the safe-haven asset it once was.
“Am I being scammed, like all the other scams that preceded this wave?” is a question Pysh says some of the Bitcoin community are asking as institutional interest grows.
Bitcoiners who helped push its market value past $1 trillion are now concerned about its future direction
The remarks come amid continued debate within the Bitcoin community about whether increasing institutional involvement is steering Bitcoin away from its original intent.
“For the people who built Bitcoin into what it is today—pushing it past a trillion dollars—these were individuals who largely self-custodied their Bitcoin, held onto their keys through 70% to 80% downturns, and still refused to sell,” Pysh said, adding:
“The term we like to throw around is we’re Bitcoin psychopaths.”
The comments follow a heated social media debate nearly a month ago, when crypto analyst Scott Melker—known as The Wolf of All Streets—remarked that while Bitcoin “is amazing,” it has, to some extent, been co-opted by the very institutions it was originally meant to hedge against.
At the same time, Ryan McMillin, chief investment officer at Merkle Tree Capital, noted that the sale of older Bitcoin to new institutional players reflects its growing “integration with the financial system.”
Pysh: Institutions will approach Bitcoin “very differently” than individual holders
Pysh said the Bitcoin ethos is under pressure and expects it to remain under scrutiny as institutional involvement grows.
“I think Bitcoin will evolve in a way that allows people to use it however they want—especially institutions, who will approach it very differently than individual holders,” he said. “That’s a tough pill for many to swallow.”
He added, “Much of Bitcoin culture is built on skepticism—questioning everything is part of the DNA.”
A March 18 report from Coinbase and EY-Parthenon found that 83% of institutional investors surveyed plan to increase their crypto allocations in 2025.
